Can you get a reverse mortgage on a condo?
Yes — but there's one extra step
JP Dauber · Licensed HECM Specialist
NMLS# 386298 · Published April 9, 2026
Why condos have an extra requirement
With a single-family home, the lender only needs to evaluate your house. With a condo, they also need to evaluate the entire building and the homeowners association (HOA) that manages it. That's because your unit's value and livability are tied to the financial health and management of the whole complex.
This isn't unique to reverse mortgages — traditional FHA purchase loans have the same requirement. The good news is that the process has become much easier since HUD expanded its approval pathways in 2019.
How can your condo qualify for a HECM?
Full project approval
Your entire condo complex is on HUD's approved list. This is the simplest path — your lender checks the database and you're good to go. The HOA submits project documents to HUD, and approval typically takes 30–60 days. Once approved, every unit in the building is eligible.
Single-unit approval
Even if the full complex isn't FHA-approved, your individual unit may qualify. Your lender handles this during the normal HECM process — it doesn't require HOA cooperation. HUD introduced this option to open up eligibility for thousands of condos that were previously excluded.
Not sure which path applies to you? Your lender can look up your building in HUD's database in a few minutes and tell you exactly where you stand.
What does HUD look for in a condo complex?
Whether through full project approval or single-unit approval, HUD evaluates the condo complex on several key factors:
Adequate reserves
The HOA must set aside at least 10% of its annual budget into reserves for repairs and maintenance. This protects against special assessments and deferred maintenance.
Owner-occupancy ratio
A sufficient percentage of units must be owner-occupied rather than rented out. This ensures the complex is primarily a residential community.
Insurance coverage
The complex must carry adequate master hazard insurance, liability insurance, and (in flood zones) flood insurance.
No active litigation
Significant pending lawsuits against the HOA can affect approval. Minor claims typically aren't a problem.
What if your condo doesn't qualify?
If neither full project approval nor single-unit approval works for your condo, you still have options. Some proprietary (jumbo) reverse mortgage programs accept condos without FHA approval. These are private loans — not insured by FHA — but they can work well for higher-value condos. The trade-off is that proprietary programs typically require higher home values and may have different terms.
There are also companies that specialize in helping HOAs get FHA approval. If your building has never applied, it might be worth bringing up at your next HOA meeting — FHA approval benefits all unit owners by expanding their financing options.
Condo-friendly HECM markets
Condos are popular with retirees across the states we serve. Learn more about reverse mortgage options where you live — see our state guides.
Your condo can work — check the approval
Living in a condo doesn't disqualify you from a reverse mortgage. Thousands of condo owners use HECMs every year. The key is checking your building's FHA approval status early — and knowing that single-unit approval is a realistic backup path if your complex isn't on HUD's list.
Want to find out if your condo qualifies? Contact me with your address, and I can check HUD's database and walk you through your options.
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