Condo reverse mortgage in 2026: FHA project approval and Single-Unit Approval explained
Last updated: · Reviewed by Simply Approved Mortgages (NMLS #2620881)
A HECM on a condominium is possible — but it depends on whether the condo project is on the FHA-approved list, or whether the individual unit qualifies under FHA Single-Unit Approval. This is the single most common reason a condo HECM file stalls in underwriting, and the question we screen first.
Get your Reverse Mortgage Estimate Summary.
Complete the short estimate form and we send back a full HECM summary: your estimated principal limit, complimentary home value estimate, payoff of any existing mortgage, and estimated proceeds available to you.
- Complimentary home value estimate
- Estimated principal limit for your age
- Existing mortgage payoff included
- Lump sum, line of credit, or monthly options
Illustration only, generated from the information you enter. Not a loan estimate, pre-qualification, commitment to lend, or approval. Subject to HUD counseling, appraisal, credit and income review, and final lender approval. You remain responsible for property taxes, insurance, and home maintenance.
Estimate summary
- Home value estimate
- $412,000
- Youngest borrower age
- 72
- Estimated principal limit
- $219,400
- Existing mortgage payoff
- $68,000
- Estimated proceeds available
- $151,400
Simply Approved Mortgages • NMLS #2620881 • Equal Housing Opportunity
What is a condo reverse mortgage?
A condominium HECM is mechanically identical to a single-family HECM — same FHA insurance, same Principal Limit math, same payout options, same disclosures. The added layer is that the condo project itself must qualify. FHA needs to be willing to insure the unit, and that requires either (a) the project being on FHA's approved list, or (b) the individual unit qualifying under FHA Single-Unit Approval (SUA).
SUA was created in 2019 specifically to expand FHA access in projects that hadn't pursued (or had let lapse) full project approval. It works on a unit-by-unit basis with the same project-level health tests applied, just for one unit at a time.
Sources: HUD — HECM Program; FHA Resource Center
How we screen a condo HECM file
- Pull the FHA-approved condo project list and check the project ID — fastest answer, often returns immediately.
- If not on the list, request a copy of the HOA budget, reserve study, master insurance certificate, and current owner-occupancy ratio from the HOA or property manager.
- Review for SUA eligibility against the current FHA criteria: owner-occupancy ratio, single-investor concentration, commercial space, litigation, reserves.
- Submit the SUA package with the HECM application and FHA case-number request.
- Schedule the FHA appraisal once SUA (or existing project approval) is confirmed.
We do this screen up front — not in week 3 of underwriting — so the borrower doesn't pay for an appraisal that won't close.
Expert insight from Simply Approved Mortgages
The most expensive surprise on a condo HECM file is finding out in week 3 that the project doesn't qualify. By then the borrower has paid for the appraisal and the file has to start over with a different product (a jumbo proprietary reverse mortgage may work on some projects that FHA won't insure).
We screen FHA project approval and SUA eligibility before requesting the case number. If neither pathway works, we check the proprietary product alternatives — many high-rise Florida, Colorado, and metro condo projects that FHA won't insure are still eligible for a jumbo reverse mortgage from one of the proprietary investors.
Simply Approved Mortgages NMLS #2620881. Reverse mortgage loans funded by third-party HUD-approved HECM lenders.
Will my condo project qualify?
Send us the project name and address — we'll pull the FHA-approved list and screen for Single-Unit Approval at no cost.
- • Personalized HECM estimate based on your actual age and home value
- • Complimentary home value estimate when you provide your address
- • Side-by-side comparison of HECM vs. HELOC vs. cash-out refinance vs. downsizing
- • Help scheduling independent HUD-approved counseling
Condo reverse mortgage — FAQ
- Can you get a reverse mortgage on a condo?
- Yes — but the condo project must either be on the FHA-approved project list, or the individual unit must qualify under FHA Single-Unit Approval (SUA). Without one of these two pathways, a HECM cannot close on the unit.
- What is FHA project approval?
- An FHA review of the entire condominium project — financial reserves, insurance, owner-occupancy ratio, litigation, single-investor concentration, and other criteria. Approval is project-wide and renewable; the FHA-approved project list is published on HUD's website.
- What is FHA Single-Unit Approval (SUA)?
- A 2019 FHA program that allows individual condo units to be financed (including HECM) in projects that are NOT on the FHA-approved list — as long as the project meets specific criteria including a minimum owner-occupancy ratio, limits on single-investor concentration, and acceptable insurance and financials. The lender submits the SUA package as part of the HECM file.
- What are the main SUA criteria?
- FHA SUA generally requires: at least 50% owner-occupancy of the project (with limited exceptions), no more than 10% of units owned by a single entity, adequate property insurance and fidelity bond, no major active litigation against the HOA, and acceptable HOA financial reserves. Specifics evolve — your lender pulls the current SUA worksheet for your project.
- What disqualifies a condo project?
- Common disqualifiers: hotel/condotel arrangements (any short-term rental program), commercial space exceeding FHA limits, manufactured-home condos that don't meet specific FHA rules, projects in active major litigation, projects with inadequate reserves or insurance, and projects with too high a single-investor or rental concentration.
- How do I know if my condo project is FHA-approved?
- Search HUD's FHA-approved condominium projects database (publicly available on HUD.gov). If your project isn't on the list, the lender screens for SUA eligibility — most lenders can do this within a few business days.
- Are condo HOA dues counted in the financial assessment?
- Yes. HOA dues are part of the property charges the borrower must continue to pay (along with property taxes, homeowner's insurance, and maintenance). The HUD financial assessment confirms the borrower has the residual income to sustain these charges.
- Do special assessments affect a condo HECM?
- Active or pending special assessments can complicate the file, particularly if large. The lender reviews the HOA estoppel and any pending assessments during underwriting. A pending assessment doesn't automatically kill the deal — it may need to be funded or escrowed at closing.
Your numbers plus the 2026 Reverse Mortgage Guide.
Request your estimate and we include the 21-page plain-English guide: who qualifies at 62+, what a HECM costs, payout options, ongoing obligations, and the questions to ask before you sign.
- 21-page guide, no jargon
- HUD/FHA program rules explained
- Costs and fees broken down
- Questions to ask any loan officer
Illustration only, generated from the information you enter. Not a loan estimate, pre-qualification, commitment to lend, or approval. Subject to HUD counseling, appraisal, credit and income review, and final lender approval. You remain responsible for property taxes, insurance, and home maintenance.
Estimate summary
- Home value estimate
- $412,000
- Youngest borrower age
- 72
- Estimated principal limit
- $219,400
- Existing mortgage payoff
- $68,000
- Estimated proceeds available
- $151,400
Simply Approved Mortgages • NMLS #2620881 • Equal Housing Opportunity
Keep learning about reverse mortgages
Where we're licensed — local guides
- Florida reverse mortgage guide
Statewide HECM rules, OFR oversight, homestead notes.
- Colorado reverse mortgage guide
Statewide HECM rules and DORA mortgage-broker oversight.
- Naples, FL
Collier County HECM and jumbo scenarios.
- The Villages, FL
Active-adult HECM scenarios across Sumter, Lake, Marion.
- Miami, FL
Miami-Dade condo FHA approval and HECM.
- Denver, CO
Front Range HECM scenarios.
References & sources
Every statistic, program rule, and regulatory claim on this page is sourced from the primary U.S. government agencies and industry bodies listed below. We never source program facts from competing brokers, blogs, or unverified secondary sources.
Source links are maintained by Simply Approved Mortgages and verified periodically. Federal program rules can change — always confirm current-year specifics with HUD, the CFPB, or a HUD-approved counselor before acting on any information on this page.
See your reverse mortgage numbers on paper.
A licensed Simply Approved Mortgages loan officer reviews your estimate with you — line by line — so you can compare a HECM against a HELOC, a refinance, or staying put.
- Side-by-side payout comparison
- Upfront and ongoing cost estimate
- HUD counseling walked through
- Answers to your heirs questions
Illustration only, generated from the information you enter. Not a loan estimate, pre-qualification, commitment to lend, or approval. Subject to HUD counseling, appraisal, credit and income review, and final lender approval. You remain responsible for property taxes, insurance, and home maintenance.
Estimate summary
- Home value estimate
- $412,000
- Youngest borrower age
- 72
- Estimated principal limit
- $219,400
- Existing mortgage payoff
- $68,000
- Estimated proceeds available
- $151,400
Simply Approved Mortgages • NMLS #2620881 • Equal Housing Opportunity
Estimate what you could qualify for in about a minute
Enter a few details about your age, home, and goals. We'll show you an estimated HECM benefit, a complimentary home value estimate, and connect you with a Simply Approved Mortgages reverse mortgage loan officer.
Related reverse mortgage articles, rate updates & HECM guides
New reverse mortgage articles are publishing soon. In the meantime, browse upcoming categories:
Documents required for a reverse mortgage
When you apply for a HECM reverse mortgage, your lender will request documents that verify your identity, property ownership, income, and assets. Gathering these in advance can speed up your estimate and application.
- Government-issued photo ID
Current driver’s license, passport, or state-issued ID.
- Social Security number verification
Social Security card or award letter showing your SSN.
- Current mortgage statement
Most recent statement if refinancing; purchase agreement if buying.
- Homeowner’s insurance declarations page
Shows current coverage, premium, and mortgagee clause.
- Property tax statement or receipt
Latest county tax bill showing taxes are current or payment history.
- Bank statements
Last 1-2 months to verify closing funds and residual reserves.
- Investment or retirement accounts
Recent statements for IRA, 401(k), brokerage, or other liquid assets.
- HOA or condo information
Homeowners association statement or condo questionnaire if applicable.
- Trust or title vesting documents
Required when the home is held in a living trust or entity.
- Flood insurance declaration
Current policy if the property is in a flood zone.
- HUD-approved counseling certificate
Required before loan application. Obtained from a HUD-approved reverse mortgage counselor.
Why we pull credit for your reverse mortgage pre-approval
HUD requires a Financial Assessment for every HECM reverse mortgage, including a review of your credit history and record of paying property taxes and homeowners insurance. As part of our standard broker/lender pre-approval process, we typically order a tri-merge credit report through a HUD-approved credit vendor to verify identity, review obligations, and confirm that you can continue paying property taxes, homeowners insurance, and maintenance after closing. Whether a tri-merge is required, and any fees, are set by the wholesale lender and credit vendor — not by HUD as a stand-alone rule.
Pay for your credit report — SmartPay
Simply Approved Mortgages uses MeridianLink SmartPay to securely collect the credit report fee for your reverse mortgage pre-approval. Payment goes directly to the credit vendor — not to us — and unlocks a tri-merge credit report (Equifax, Experian, TransUnion) that your loan officer uses to complete the broker/lender pre-approval file for HUD's Financial Assessment.
- Secure, PCI-compliant checkout hosted by MeridianLink
- Standard step in our broker/lender pre-approval process (not a HUD stand-alone requirement)
- Optional — you can decline; your loan officer will explain any impact on your options
You'll be redirected to cic.meridianlink.com (SmartPay).
Check your credit first — $1 trial at MyITINCredit
Before you apply, it's smart to know exactly where your credit stands. MyITINCredit offers a $1 trial for 15 days that includes all three credit reports and scores (Equifax, Experian, TransUnion), plus ongoing credit monitoring so you can catch errors, dispute inaccuracies, and watch for identity theft.
- See all 3 bureau reports & scores before your lender does
- Ongoing monitoring alerts you to new accounts or score changes
- Fix errors early — cleaner credit can widen your reverse mortgage options
You'll be redirected to myitincredit.com. Third-party service — terms apply.
Credit report fees are paid directly to the credit vendor. Simply Approved Mortgages (NMLS #2620881) does not profit from the credit pull. MyITINCredit is an independent third-party service; pricing, terms, and features are set by that provider.
Ready to See Your Reverse Mortgage Numbers?
Get your personalized HECM estimate from a Simply Approved Mortgages licensed loan officer, or run the numbers yourself with our calculator — free, no obligation, no hard credit pull.