Yes. It doesn’t matter if you didn’t buy it with an FHA-insured mortgage. Your new HUD reverse mortgage will be a new FHA-insured mortgage loan.
What types of homes are eligible?
Your home must be a single family dwelling or a two-to-four unit property that you own and occupy. Townhouses, detached homes, units in condominiums and some manufactured homes are eligible. Condominiums must be FHA-approved. It is possible for individual condominiums units to qualify under the Spot Loan program.
What’s the out-of-pocket cost?
The out-of-pocket cash cost to you is most often limited to an appraisal and counseling, although those may be able to be financed into the loan.
Most of the other costs can be “financed” with the loan. This means that you can use reverse mortgage funds advanced to you at closing to pay the costs due at that time, and later advances to pay any ongoing costs. The advances are added to your loan balance, and become part of what you owe – and pay interest on.
If a lender charges an origination fee that is greater than the amount that can be financed with the loan, you have to pay the difference in cash at closing.