Reverse mortgages and condos

[Quantum Sufficit]

Hi all,

Is it much more difficult to procure a reverse mortgage for a condo unit. I understand a lot of the lenders have some much tighter standards to put you up against relative to the number of units, the number that already have reverse mortgages on them, the finances of the home owners association relative to reserve fees and accounts, the rate of delinquency of homeowners fees etc. I have no children, own my condo free and clear and it is worth about 400k. I am married and all the calculators give me approx. 220k tax free at age 62 (I am 46). I always thought that for someone without heirs (I have nephews and nieces but they will not be prominent in my mind when financing our retirement), the reverse mortgage with both spouses as party to the loan in a home you intend to stay in for life would make a great inflation "bump"/offset to my portfolio. Any real world recent experience on condos and reverse mortgages? I probably won't find RM's very popular here I am guessing?? Thanks.

 

[rescueme]

(snip)...in a home you intend to stay in for life...

That, along with the high fees are the primary reasons why I/DW would not consider an RM at this time, even though we're both in our mid-60's and both retired.

Maybe we won't move in the future - but maybe we will. We would never say never in a situation such as this.

Just our simple POV.

 

[jerome len]

It all depends on the mtge company and the circumstances of your condo group. Many condo groups are in trouble because of the economy. If there are a high percentage of rentals or if many aren't paying their condo dues, you'll have trouble....sometimes getting any type of a mtge. My condo association restricts rentals to 15% but they can't make it stick.....so, the answer today is far different than it would have been a few years ago. You have to work with any mtge company and see who, if any of them, will offer you a reverse mtge...what it would cost and then decide if you want to do it. No one will have the answer for you. good luck

 

[jeichs]

It is very tough to do reverse mortgages on a condo these days. Your condo must be approved for FHA financing; ie 90% of units must be owner occupied, no recreation lease, no litigation, large amount of reserves, etc. An easy way to search is HUD's condo page...
https://entp.hud.gov/idapp/html/condlook.cfm
Pop it in there and see if approved or not!

Jason