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Can you do a reverse mortgage on a plot of land?

1 answer | Last updated: Jan 04, 2015
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Q
An anonymous caregiver asked...

Can you do a reverse mortgage on a piece of land that is not developed?

 

Answers
Caring.com User - Reva Minkoff
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Reva Minkoff is the founder and editor of the Reverse Mortgage Minute, a blog that focuses on reverse mortgage, mortgage, and real estate news....
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Reva Minkoff answered...

Hello, and thank you for your question. Unfortunately, you cannot do a reverse mortgage on a piece of land that is undeveloped. There must be a residence on the property for a reverse mortgage to take place. In addition, the residence must be FHA approved. For example, bed & breakfasts and working farms are not reverse mortgage eligible properties. It must also be the homeowner's primary residence. For more information on eligible properties, see http://www.hud.gov/offices/hsg/sfh/hecm/hecm--df.cfm.