What If My Home Needs Repairs?

by | Nov 8, 2021 | Reverse FAQ | 0 comments

Can I get a HECM reverse mortgage if my personal residence needs repairs?

Yes. Just like the standard FHA 203 rehab loan, FHA offers a reverse rehab loan. Get an estimate and enter into a fixed fee contract with a general contractor. If the repairs needed are no more than 15% of the value of the home, the repairs can be done after closing and paid for out of the reverse mortgage.

It is easier to get a HECM rehab refinance than to get a HECM rehab purchase loan. This will be discussed on a separate page.

It is easier to qualify for a HECM involving repairs than a regular FHA rehab loan because the borrower does not have to prove a high income ratio.

Can I use a HECM to buy or refinance a condo? Yes, if the condo as a whole meets FNMA Standards. Read.

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