Before you begin the process of applying for a reverse mortgage, it’s important to determine whether or not your property is eligible. Even if you are like the majority of reverse mortgage borrowers and live in a single family, one-unit home, you still need to go through the same process of qualifying.

First and foremost, the property that you wish to mortgage must be your primary residence. That means that you reside in this property (almost) exclusively and that it is not a second home or vacation home. In addition, it must be fully completed and occupied, with a certificate of occupancy or equivalent as proof. Manufacture homes built prior to 1975 are not eligible, while newer manufactured homes must conform to modern safety standards and stand atop a foundation in order to qualify. Boarding houses, Bed & Breakfasts, and Cooperatively Owned Units (Co-ops) are ineligible, as are properties that contain more than four units.

After you obtain the reverse mortgage, the property must remain your primary residence. If you permanently move out of the property (typically defined as leaving for more than one year), the reverse mortgage will be called by the lender, who may choose to initiate foreclosure proceedings. While the reverse mortgage is outstanding, renting the property is considered a breach of contract and will also lead the mortgage being called. In short, primary residence means primary residence. No exceptions.

Understandably, reverse mortgage lenders are less inclined to take on added risk for mortgages that will stay on their own books. That means that for properties in question (i.e. certain manufactured homes), most lenders will try to qualify you using the HECM reverse mortgage (which is probably just as well) than for any proprietary reverse mortgage products that they offer.

If you are still in doubt as to whether your property is eligible, contact a reverse mortgage lender near you.