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Can a reverse mortgage be done on a manufactured home that sits on leased property?

By Laurie C. on 11.11.2018

Hello Laurie,

For a manufactured home to be eligible, it has several specific requirements it must meet.  Properties on leased land (not rented space as in a park as that is ineligible) have their requirements that they also must meet.  The fact that your home is a manufactured home in and of itself does not make it ineligible with HUD for the reverse mortgage. 

However, when you overlay the two sets of requirements dealing with the unit, its placement on the land and restrictions on movement,  the appraisal requirements and everything else that must be met, the number of homes that meet all the HUD requirements are few and many lenders will not accept manufactured homes on leased land at all due to the additional risk. 

But it is possible if your home has never been on another site (was moved from the factory directly to your site and has never been relocated to another site), was manufactured after 1976, is on a permanent foundation, there are many current sales of other manufactured homes on leased land that have sold recently for the appraiser to use for comparable sales and your lease extends at least 50 years beyond the youngest borrowers’ 100th birthday or is a 99-year renewable lease and meets all other HUD requirements, you might be able to find a lender who can accommodate your request.

 

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