Did You Know You Can Get Reverse Mortgages On Condominiums?
Over the past few years it’s been almost impossible to get a reverse mortgage on a condo. But new lenders are doing reverse mortgages for condominium owners.
The new programs work much the same as the standard reverse mortgage but they allow higher home values. Typically, the unit must be worth at least $250,000 with maximum home values of $10,000,000!
They also don’t have the costly government mortgage insurance so the closing costs can be lower. In most cases, fixed rate and adjustable rate programs are available.
Standard reverse mortgage property guidelines apply which include a review of owner-occupied units vs investors; how many owners are behind on their HOA dues; and a review of the building insurance.
Each unit owner must have their own interior insurance and should be able to demonstrate that they can maintain their current expenses, which include monthly HOA dues, real estate taxes, homeowners’ insurance and other monthly debts. So, if you’ve thought about reverse mortgages and were told you can’t get one because you have a condo, it’s not true. Give Heide International a call and we can help.