Family First provides both fixed-rate and variable-rate reverse mortgage loans.
With a traditional mortgage or home equity loan:
Family Homes: Single-family homes are eligible for reverse mortgages. Multifamily homes can also qualify if they have no more than four units and the borrower is using one of the units as his primary residence. A primary residence is defined by the Department of Housing and Urban Development, or HUD, the federal agency which oversees the FHA, as being the place where the borrower lives for the majority of the year.
Community Properties: Someone who owns a condominium or townhouse can receive a reverse mortgage, but for condominiums, the development has to be approved by HUD. A home in a planned unit development, known as a PUD, is also eligible. PUDs are communities built by developers with common areas that all residents share, such as a park or recreational center. These housing communities are legally similar to townhouses, but can be different in structure and carry different levels of owner responsibility. PUDs are usually single family homes or a mix of both single and multiunit homes, while townhouses can share common walls. Typically, major repairs to townhouses are the obligation of the homeowner's association, but in a PUD, the homeowner is responsible for repairs.
Manufactured Homes: Manufactured homes, where the pieces of the home were built in a factory and later assembled on site, are eligible for reverse mortgages as long as the residence meets FHA requirements. The home must have been built after June 1976, be attached to permanent framework, have a floor area of at least 400 square feet, and meet the FHA safety and flood standards. A manufactured home must also be classified and taxed as real estate in the area where the home is located.
Cooperative Housing: These property types are currently not eligible for reverse mortgage financing.