Properties Not Eligible for Reverse Mortgages

Posted by Charles D

December 18, 2008

According to HUD, there are several types of housing units that are not eligible for a HECM or Reverse Mortgages. Primarily older manufactured homes are not eligible with a couple of other types you would not think about on a normal basis.

Cooperative units
Newly constructed residence where a Certificate of Occupancy or its equivalent has not been issued by the appropriate local authority
Boarding houses
Bed and breakfast establishments
Existing manufactured homes built before June 15, 1976; and
Existing manufactured homes built after June 15, 1976 that fail to conform to the Manufactured Home Construction Safety Standards, as evidenced by affixed certification labels (e.g., data plate and HUD certification label) and/or lack a permanent foundation as required in HUD’s Permanent Foundations for Manufactured Housing Guide.