Property Requirements
What your home needs to qualify — and how Long Beach Reverse Mortgage helps you through the process
1. What Types of Homes Qualify for a Reverse Mortgage?
Most primary residences qualify, including:
- Single-family homes
- FHA-approved condos
- Certain non-approved condos (private/jumbo lenders)
- Manufactured homes (built after 1976 with HUD tags)
- Townhomes
- Planned Unit Developments (PUDs)
- 2- to 4-unit properties (if you live in one unit)
Homes in Long Beach, Lakewood, Seal Beach, and surrounding areas almost always meet these requirements.
2. FHA Property Standards (HECM Reverse Mortgages)
FHA requires that homes be:
- Safe
- Sound
- Structurally secure
These are often called “Minimum Property Standards” (MPS).
The appraiser is looking for health and safety concerns, not cosmetic imperfections.
Common Property Issues (Easy Fixes)
Most repairs required on Long Beach reverse mortgage appraisals are minor. These include:
Peeling exterior paint
Especially on fascia boards, eaves, and window trim (one of the most common FHA call-outs).
Missing or outdated smoke detectors
(Long Beach homes must have a smoke detector in every bedroom, hallway, and on each floor.)
Missing carbon monoxide detectors
California requires CO detectors — but they’re inexpensive and easy to install.
Water heater not double-strapped
California requires two earthquake straps (upper and lower).
Tripping hazards
Loose carpet, broken tiles, uneven surfaces.
Minor plumbing leaks
Under sinks or around fixtures.
Missing appliance connections
HVAC or heating source must be functional.
Broken windows or missing screens
For safety and ventilation.
Handrails missing on stairs
If stairs are steep or elevated.
Most repairs required on Long Beach reverse mortgage appraisals are minor. These include:
Larger, Less Common Repair Issues (Still Fixable)
These issues may require more attention but do not disqualify you:
✔ Roof problems
- Leaks, sagging, or missing shingles.
✔ Foundation cracks
- Requires inspection or documentation.
✔ Major termite damage
- Common in Southern California; treatment is usually simple.
✔ Electrical hazards
- Exposed wires, outdated panels, missing GFCIs.
✔ Significant water damage
- Leaks, mold, or structural moisture issues.
✔ Non-working HVAC or heating system
- A heat source is required — but AC is not.
If needed, we can use lender repair holdbacks, meaning:
👉 You can close the reverse mortgage before repairs are completed,
👉 Funds are set aside by the lender,
👉 Repairs are done after closing.
This is extremely helpful for seniors who lack upfront repair funds.
What Happens During the Appraisal?
- Inspect the exterior
- Walk through the interior
- Take photos
- Measure rooms
- Check basic systems (plumbing, roof, heating)
- Look for safety hazards
- Confirm the home meets FHA standards
- Determine market value using comparable sales
The visit usually takes 20–60 minutes.
I always prepare you in advance so there are no surprises.
How Repairs Are Handled
- If no repairs are needed:
The loan proceeds normally.
- If minor repairs are needed:
You may be able to fix them before closing or use a repair holdback after closing.
- If major repairs are needed:
We create a plan together, and I coordinate everything with the lender to make it as simple as possible.
Common repair holdback items include:
- Exterior peeling paint
- Safety issues
- Railings
- Water heater straps
- Minor termite work
- Missing CO/smoke detectors
Repairs must usually be completed within 90–120 days after closing.
Condo Requirements for Reverse Mortgages
FHA reverse mortgages require the condo building to be FHA-approved.
However:
- Jumbo / proprietary reverse mortgages do NOT require FHA approval.
This means even if your building is not FHA-approved, you may still qualify through a jumbo lender.
This is especially helpful in Long Beach condo communities where FHA approvals can be limited.
Properties That May Need Additional Review
Some properties require extra checks but can still qualify:
- Homes in land-lease communities
- Manufactured homes with modified foundations
- Older homes needing inspection
- Properties with unpermitted additions
- Multi-unit homes with rental units
Each situation is unique — and I help navigate all requirements for a smooth process.
Properties That Do NOT Qualify
These property types are not eligible for reverse mortgages:
Second homes or vacation homes
Investment properties
Homes used primarily for Airbnb/short-term rentals
Properties in severe disrepair without a feasible repair plan
Primary residence occupancy is required.
Quick Summary
To qualify your Long Beach home for a reverse mortgage:
- It must be your primary residence
- It must meet basic health & safety standards
- Most repairs are simple and inexpensive
- Common fixes include paint, detectors, and water heater straps
- Larger repairs can usually be handled with lender holdbacks
- Appraisals are straightforward and fast
- Condos may qualify through FHA or jumbo programs
At Long Beach Reverse Mortgage, I help homeowners navigate every step — ensuring your home qualifies and your experience is stress-free.