FHA condo approval for reverse mortgage qualification

I am looking into reverse mortgage possibilities but my condo must be first be FHA approved. Does anyone have experience in this area?

fiscarel

in About Brooklyn 10 years and 8 months ago

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mortgagepro | 10 years and 8 months ago

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While I am not disagreeing with the tone of klilly’s reply, each scenario is unique and if this happens to be a smaller Condo it may be easier to get the Board to consider applying for FHA approval. The Home Equity Conversion Mortgage (HECM) is the Federal Housing Administration (FHA) reverse mortgage program and the most common type of reverse mortgages. As the U.S. government insures HECMs through the FHA the requirements for Condo projects being approved applies. _(It was not always like this, as prior to 2009 there was such a thing as spot condo approvals; but times have changed)._ If would like to discuss the specifics of your scenario, feel free to contact me: Adam Roberts adamr@southshoremortgage.com South Shore Mortgage NMLS #1310 631-956-0111 x218

klilly | 10 years and 8 months ago

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If your Condo is not already FHA approved, it will be very difficult to make it so. One of the big nuts that FHA requires is for the clause regarding the boards right of first refusal on any sale has to be taken out of the plan. In other words the whole plan will need an amendment. Every owner will need to agree to the change and someone needs to pay the legal fees, filing fees etc. to do so. Find another mortgage Banker/ Bank etc. with other options.