Chapter
1 Appraisal & Property Requirements Page
1-12 General Section
255: Home Equity Conversion Mortgages (Reverse Mortgages, a.k.a. HECM) allows
a borrower aged 62 and older to borrow against the equity in a property that has
limited outstanding debt. The subject property under this program must be an existing
one-to four-unit dwelling in which the mortgagor occupies one of the units. It
may be a condo if it is in a FHA approved project or it may be a manufactured
home if the home complies with outstanding FHA guidelines for manufactured homes.
Appraisal
& Conditions The
appraiser must perform the appraisal with the same standards and forms expected
in an FHA single-family appraisal. This includes noting the same deficiencies
and repair items. In certain instances, the borrower is not required to treat
any defective paint surfaces after closing for properties built before 1978. Please
see: HUD Handbook
4235.1, Rev-1, Section 3 for requirements of appraisal and property. |