Reverse Mortgage for Condos in California: What You Need to Know
Millions of California seniors live in condos — in San Francisco, Los Angeles, San Diego, the Bay Area, and coastal communities. If you own a condo and want to access your equity through a reverse mortgage, here’s what you need to know about FHA approval requirements and alternatives.
HECM Reverse Mortgage on a Condo: FHA Approval Required
To get a HECM reverse mortgage on a California condo, the condo project (HOA) must be FHA-approved. This is a project-level approval — not just your individual unit. Your unit could be in pristine condition, but if the HOA project isn’t on HUD’s approved list, you can’t get a HECM.
How to Check if Your Condo Is FHA-Approved
Search HUD’s Condo Approval database at hud.gov/program_offices/housing/sfh/approved using your condo project name or address. We can also check for you — call (800) 239-1103.
What If My Condo Is NOT FHA-Approved?
You have two options:
Option 1: Get FHA Approval
The HOA can apply for FHA spot approval (for individual units) or full project approval. This takes time and requires HOA cooperation — owner-occupancy ratios, insurance requirements, reserve funding minimums, and delinquency limits must all be met. It’s often worth pursuing if many owners in your building might benefit.
Option 2: Jumbo Proprietary Reverse Mortgage
Proprietary jumbo reverse mortgages have fewer property restrictions. Many accept non-FHA-approved condos, as long as the property meets the lender’s own guidelines. For California condos valued above $1M, this is often the better option anyway — and you get access to more equity.
Condo Requirements for HECM
- Project must be FHA-approved
- At least 50% of units must be owner-occupied
- No more than 15% of units delinquent on HOA dues
- Adequate reserve funding
- No active litigation involving the project
- Adequate hazard and liability insurance
HOA Dues and Reverse Mortgage Obligations
If you have a reverse mortgage on a condo, HOA dues are your ongoing obligation — just like property taxes and insurance. Failure to pay HOA dues can trigger default on your reverse mortgage. Lenders may require a Life Expectancy Set-Aside (LESA) to cover HOA dues and other property charges if your financial assessment raises concerns.
Own a California condo? We’ll check your FHA approval status and find your best option.
DiVita Home Finance | NMLS #323700 | Michael DiVita NMLS #241655
Related: California Reverse Mortgage Guide | Jumbo Reverse Mortgage
About DiVita Home Finance
DiVita Home Finance is a small, family-owned mortgage company based in Marin County, California. When you call, you speak directly with Michael DiVita — the owner — not a call center, not an out-of-state rep, not someone reading from a script. We’re here for a low-key, no-obligation conversation about your situation.
We take your privacy seriously. We will never sell your information to third-party lenders or lead generation companies — unlike many of the large mortgage platforms. Your inquiry stays with us, period.
📞 Call: (800) 239-1103 | 💬 Text Michael directly: (310) 849-9124
About DiVita Home Finance
DiVita Home Finance is a small, family-owned mortgage company based in Marin County, California. When you call, you speak directly with Michael DiVita — the owner — not a call center, not an out-of-state rep, not someone reading from a script. We’re here for a low-key, no-obligation conversation about your situation.
We take your privacy seriously. We will never sell your information to third-party lenders or lead generation companies — unlike many of the large mortgage platforms. Your inquiry stays with us, period.
📞 Call: (800) 239-1103 | 💬 Text Michael directly: (310) 849-9124
About DiVita Home Finance
DiVita Home Finance is a small, family-owned mortgage company based in Marin County, California. When you call, you speak directly with Michael DiVita — the owner — not a call center, not an out-of-state rep, not someone reading from a script. We’re here for a low-key, no-obligation conversation about your situation.
We take your privacy seriously. We will never sell your information to third-party lenders or lead generation companies — unlike many of the large mortgage platforms. Your inquiry stays with us, period.
📞 Call: (800) 239-1103 | 💬 Text Michael directly: (310) 849-9124
