Cliff AuerswaldPresident, All Reverse Mortgage, Inc. · President at All Reverse Mortgage, Inc. (ARLO™) NMLS#14041 Company NMLS #13999

HECM Purchase - What Property Types Are Eligible?

22 Dec 2023 · 1 min

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In this concise explanation, the speaker outlines the property eligibility criteria for FHA‑backed Home Equity Conversion Mortgages (HECM). Eligible properties include standard detached single‑family homes and multi‑family buildings with up to four units, provided the borrower occupies one unit as their primary residence. The loan is not intended for non‑owner‑occupied or investment properties. Additionally, planned developments (treated like single‑family homes within HOA communities) and HUD‑approved condominiums are eligible, assuming the condo is on the FHA approval list.

Chapters

No exceptions or restrictions because this is an FHA program, and FHA is explicit in the homes that they allow us to lend on. So it's single-family homes, you know, your standard detached single-family homes, 1 to 4 units. So you can have multi-family as long as you're living in that home as your primary residence. These are not intended for non-owner occupied or investments. So you can still purchase a 4-unit or, you know, 2-unit, 3, 4-unit as long as you're living in one of those units. So 1 to 4 units is okay, single family is okay. Planning developments, which is essentially just like a single family, it's just an HOA community, and HUD-approved condos. So if you're in a condo association, the condominium would be eligible as long as it's on FHA's approval.