Federal and state policy changes have expanded and simplified reverse mortgage financing for Massachusetts condominium owners.
Now, it’s easier for condominium owners to be eligible for HUD/FHA federally insured
Home Equity Conversion Mortgage (HECM) financing as well as have access to Proprietary (jumbo) reverse mortgage funding opportunities.
FHA policy revisions enable certain individual condominium units to be eligible for FHA mortgage financing even if the condominium project is not FHA approved. Further, it enables approval for more mixed-use projects, and extends the recertification requirement for approved projects from two to three years.
In addition, the Massachusetts Division of Banks has approved new Proprietary (jumbo) reverse mortgages for Massachusetts home and condominium owners. These programs provide loan amounts up to $1,500,000 with terms substantially similar to the federally insured HECM with low and no cost options, and without the need for FHA project approval.
Determining if a reverse mortgage is a good fit depends on individual situations and circumstances, and consideration of near and longer term financial and personal factors.
Interested learning more about reverse mortgage and your eligibility as a condominium owner? As qualified and knowledgeable Certified Reverse Mortgage Professionals (CRMPs), we focus on education first – objectively assessing your situation and explaining the choices.
