MUCH LIKE THE PARAMETERS FOR OBTAINING A REVERSE MORTGAGE ON A HOME OR CONDO OR MANUFACTURED HOME, THERE ARE VARIOUS REQUIREMENTS FOR OBTAINING A REVERSE MORTGAGE ON A CO-OP.
AGE AND RESIDENCY REQUIREMENTS
Borrowers must be at least 62 years of age. The home must be the owner's primary residence for at least 6 months throughout the year (snowbirds welcome!).
PAYING ONGOING PROPERTY CHARGES
The co-op unit owner must continue to pay co-op maintenance fees, common charges, and real estate taxes plus any other fees levied by the co-op. Failure to pay these charges will cause the loan to be in default and the loan to become due. Refinancing, moving, changing ownership of the unit or all borrowers passing away also causes the loan to become due.
KEEPING THE CO-OP IN GOOD REPAIR
The owner/owners must keep their co-op unit in good repair if a loss or damage to their unit should occur.
APPROVAL AND FORMS
Potential borrowers must receive approval for the reverse mortgage from the co-op board. Applicable co-op forms must be completed by the co-op board and returned to the lending company along with an application signed by you plus certain required documents.
REVERSE MORTGAGE COUNSELING
HUD has mandated that reverse mortgage counseling be required in order to obtain a reverse mortgage.
FOR A FREE, NO-OBLIGATION PROPOSAL AND TO SEE IF A REVERSE MORTGAGE WILL WORK FOR YOU, PLEASE CALL: 631-804-9044 (DIRECT) OR 888-843-9797 (24 HR MESSAGE)