How do I get a reverse mortgage? I own a condo, fully paid but not FHA-HUD approved.
You can look for a HUD-approved reverse mortgage lender on HUD's website. You can go talk to a lender and get a quote, but you must have a one-on-one reverse mortgage counseling appointment with a HUD-approved HECM Counselor first before you can actually apply for a reverse mortgage (also known as Home Equity Conversion Mortgages, or "HECM's").
- Be age 62 or older
- Have enough equity in your residence (usually somewhere like 50-65%)
- The property you get the reverse mortgage on must be your principal residence where you reside more than 6 months of the year, and
- It must be a FHA/HUD-approved type of property, which you've alluded to in your question.
If the property you live in now doesn't meet eligibility standards for reverse mortgages set by FHA-HUD, there's not much you can do there. However, you may be able to do what is called a HECM for Purchase, which would involve you buying (usually downsizing) another home and getting a reverse mortgage on that new home all in one single mortgage closing transaction.
In the past, reverse mortgages have not required an assessment of your finances like is done when you buy a home with a mortgage. However, they are making some large changes to the process and all HECM's after April 27, 2015 will have to undergo a Financial Assessment. It may be more difficult for many senior homeowners to get a reverse mortgage after this change, depending on the stability of your financial situation (credit score, debt amounts, etc.).
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