California Condo Reverse Mortgage
Getting a reverse mortgage in the state of California for a condo can be tricky. The FHA has strict rules on reverse mortgages (HECMs) in the state. First, the condo board has to meet FHA guidelines, with the most important one requiring at least 10% of the association's annual budget be set aside for reserves. Another guideline that usually prevents condo homeowners from getting approved for a reverse mortgage loan, is that no more than 10% of the condo owners can already have a reverse mortgage insured by the FHA. The rule means if the condo has 30 units, no more than 3 owners are able to obtain a reverse mortgage through the FHA.
Additonal HECM Condo Specified Requirements in FL
- Owner-occupied units must be more than half of the units. Non-owner occupied units that must stay below 50% of the total include both rentals and 2nd homes that are not the condo owner's primary residences.
- No more than 15% of the unit owners may be more than 30 days behind on HOA dues.