That is a great question and for the answer we will need to look to the FHA Guidelines regarding suitable property. Any home that qualifies for forward (traditional) FHA loans will be acceptable for FHA Reverse Mortgage financing.
The following eligible property types must meet all FHA property standards and flood requirements:
FHA Approved Condominiums
Manufactured Homes that meet FHA Standards (permanent foundation on owned land)
However not all homes in any of the categories above may qualify. You will want to work with an experienced reverse mortgage consultant who is familiar with the HECM For Purchase.
Individual lenders may also have thier own stricter guidelines called “overlays”. (Example - Some may not be willing to loan on 2 to 4 unit multiple family dwellings) Be sure to ask your RMC if the type of home you want is one they can loan on.
Some “unique” single family homes may not qualify for FHA financing. For example, geodesic dome homes may not qualify if they cannot be shown to be marketable and there are no recent comparable sales in the immediate area.
Reverse Mortgage for purchase can be a great way to buy your dream retirement home. It gives you more purchasing power than an all cash transaction with the same benefit of no required monthly mortgage payments. Of course you must always pay your property taxes, insurance and Homeowners Association dues (if any), and maintain your home. Probably exactly as you would do if you paid cash!
Bend, Oregon: CE Credits for Realtors delivered in Oregon on the topic of Reverse Mortgage
Sharon Falvey, Vice President Northwest Sales has been effectively delivering Continuing Education Credits to Realtors accross the State of Oregon and most recently in Bend, Oregon. This class has been very well received by Realtors that thought they understood the truth about Reverse Mortgage until they took the class.
Sharon Falvey and Security One Lending were recently quoted in "Reverse Mortgage Daily" and "Reverse Fortunes" as well as other's. It brings me great joy to be able to dispel the myths about Reverse Mortgage and show Realtors how they can position themselves to use it correctly and increase their sales. We all need to make our way in these interesting times and you can never have to many tools in your belt to do so.
Dan Heater: Continuing Education Director in Bend Oregon for COAR is quoted as saying:
"Thank you Sharon so much for the great class on Reverse Mortgages you did at COAR last week. The class was very good. It is amazing that we all still have these pre-conceived ideas about what a reverse mortgage is and how it can fit into our lives as we age. All of our brokers we very impressed with the class and had all changed their minds as to the value and use of reverse mortgages both personally, and as a tool to help their customers.
The class was concise, easy to understand and gave all who attended something else to include in their presentations for their clients. I would recommend this class for anyone to take. Anyone approaching this age, with parents close to this age, or a real estate practitioner with clients of this age would gain valuable information as to how to own real estate as you approach your senior years.
And Desiree Streeter, Broker in Bend Oregon as saying:
I want to thank you so much for drawing my card for the nice briefcase. That really brightened my day! I have had some really rough times lately with caring for my mother who has been ill for the past 2 years and then my husband being in the hospital since Feb 2 and getting out tomorrow. With that and work I have definitely had a full plate!
I really enjoyed the class today. I went into it knowing nothing at all about Reverse Mortgages. It was very interesting and I gained a lot of knowledge which I will use. I will highly recommend this class to others I know when I see it posted again. I look forward to your updates!
Real Estate Broker
If you would like more informaiton as to how I can bring this to your Association or Office please do not hesitate to contact me. For more general information please visit my website or call me direct at 541-891-5706 (cell) 503-534-3546 (office). I look forward to serving your needs.
Vice President, Northwest Sales
Home Equity Specialist
My blog is a personal expression of my own thoughts, and opinions and does not necessarily reflect the thoughts and opinions of Security One Lending