Applying for a reverse is a fairly simple process; however, there are a few basic eligibility requirements:
- All homeowners on title must be aged 62 years or over
- You should have a sufficient amount of equity built up in your home.
- A Reverse Mortgage Advisor can help you determine if you have enough equity to qualify
- You must pay off any existing mortgage balance and all mandatory obligations at closing with funds from the Reverse Mortgage or another source
- Your home must be your principal residence
- Your home must meet the Federal Housing Administration (FHA) minimum property standards, however in some cases you may be able to use your reverse mortgage loan funds to pay for repairs that may be required
- Evidence of a completed counseling session with a HUD-approved Reverse Mortgage counselor is also required. A Reverse Mortgage Advisor can provide you with a list of authorized counselors. You have the option of meeting with the counselor in person or by phone.
- Your home must be a single-family residence, a two-to-four unit* owner-occupied house, a HUD-approved condominium or a manufactured home that meets FHA requirements.
A manufactured home is defined as a dwelling unit that had been built in a factory on a permanent chassis including a steel frame and axle, and then towed to the site on its own wheels. Once at the site, it is attached to a permanent foundation system.
Although mobile homes are generally not a property type that is eligible for a reverse mortgage, some manufactured homes are approved by the Department of Housing and Urban Development (HUD) and meet Federal Housing Administration (FHA) requirements. The Home Equity Conversion Mortgage (HECM) includes the following requirements for manufactured homes to be eligible.
- Your home must have a HUD seal affixed on the outside of the home, which proves that the home conforms to the Federal Manufactured Home Construction and Safety Standards, under HUD code
- Your home must be produced after January 1, 1990.
- Your home must be taxed and classified as real estate and must be designed to be used as a dwelling with a permanent foundation built to FHA requirements.
- Your home must be in its original location. The only acceptable move the home must have encountered was the move from the factory to the dealer and then to the site. Once on the site, it must have remained there permanently.
- Your home must have at least a minimum floor area of 800 square feet.
- Your home must not be in a condominium association.
- Your home must be built and must remain on a permanent chassis.
- Any wheels, axels, or a hitch must be removed from your home.
- Your home must be permanently attached to the property.
- Your home must have acceptable perimeter enclosure (skirting is a must).
- Beneath your home, the finished grade must be at or above the 100-year flood elevation.
- Your home must have an engineer’s certificate stating that the foundation meets HUD guidelines.
- Your home must have permanent installed utilities that have been protected from freezing.
- Your home must have the affixed HUD tag or data plate, and the appraiser must include the serial number on the appraisal report.
- Your home must be doublewide or bigger.
- Your mortgage must cover both the unit and its site.
- You must own the land the home rests on.
- You must meet any additional requirements specified by your lender and HUD
“FHA Reverse Mortgages (HECMs) for Seniors.” Portal.hud.gov. NP. ND. Web. 5 Sept 2014. http://portal.hud.gov/hudportal/HUD?src=%2Fprogram_offices%2Fhousing%2Fsfh%2Fhecm%2Fhecmabou
“What You Should Know About Mobile Homes Reverse Mortgages” RetirementMortgages.wordpress.com. NP. ND. Web. 5 Sept 2014. https://retirementmortgages.wordpress.com/2013/02/23/what-you-should-know-about-mobile-homes-reverse-mortgages/
Yedinak, John. “Reverse Mortgage Guidelines for Manufactured Homes.” ReverseMortgageDaily.com. NP. ND. Web. 5 Sept 2014. https://reversemortgagedaily.com/2008/12/18/reverse-mortgage-guidelines-for-manufactured-homes/