The Ultimate HOA Checklist Before Getting a Reverse Mortgage on a Condo

Evaluating the HOA on a Condominium for an FHA Reverse Mortgage

HOA evaluation checklist graphic for FHA reverse mortgages — Start here before ordering any condo questionnaires.

This guide is for real-estate agents, financial advisors, and savvy homeowners evaluating the HOA on a condominium for an FHA reverse mortgage. Use it to avoid expensive surprises and loan denial.

TL;DR – Quick Wins When Evaluating the HOA on a Condominium for an FHA Reverse Mortgage

Verify ≥ 50 % owner-occupancy and < 15 % delinquencies.
Scan the HUD-9991 form before paying for a condo cert.
Check the master policy for 100 % replacement cost and deductibles under $10 k.
Email the 10 questions in Step 6 first—save time and money.

Step 1 – FHA Spot-Approval Basics for Evaluating the HOA on a Condominium

Project complete—no active construction.
≥ 5 units, ≥ 50 % owner-occupied.
≤ 10 % FHA concentration (max 2 units if < 10 total).
No unresolved litigation or financial distress.

Step 2 – HOA Financial Health When Evaluating the HOA on a Condo for an FHA Reverse Mortgage

≥ 10 % of budget to reserves or a reserve study < 24 months old.
Delinquencies below 15 %.
Operating and reserve funds in separate accounts.

Infographic with key HOA finance metrics — Owner-occupancy, reserves, and delinquency rates drive FHA approval odds.

Step 3 – Insurance Traps When Evaluating the HOA on a Condominium for an FHA Reverse Mortgage

100 % replacement-cost hazard coverage.
≥ $1 M liability.
Fidelity bond if 20+ units or >$50 k in funds.
Flood insurance if required by FEMA.

Watch out: massive deductibles on roofs or “walls-in” exclusions.

Step 4 – Deal-Killers That Stop an FHA Reverse Mortgage on a Condo

Reserves underfunded or no recent study.
Delinquencies > 15 %.
Pending structural litigation.
Commercial space > 35 %.

Litigation and low reserves red-flag infographic — These issues derail FHA spot approval immediately.

Step 5 – General HOA Health Tips for an FHA Reverse Mortgage

Reserve study funded ≥ 70 %.
Budgets & meeting minutes readily available.
Common areas kept in good repair.

Step 6 – Pre-Screen Email While Evaluating the HOA on a Condominium

Copy/paste and send before paying for a condo cert:

Subject: A couple of questions before I request a questionnaire

To whom it may concern,

Questionnaires have become very expensive. Could you please help me determine the following before I spend a lot of $ on a questionnaire.

Is the current owner-occupancy percentage greater than 50%?

Are more than 15% of units 60+ days delinquent?

Does any owner/entity own >10 % of units?

Could you send me the master insurance policy?

Does the HOA perform any short-term rental property management activities?

Is there any structural deferred maintenace that would be identified in a questionnaire?

Are there any current special assessments?

Is there any pending litigation?

Is the HOA developer controlled? Are there any portions of the project still under construction?

Do you know if there is commercial space and if so, is it more than 35% of the total square footage?

Frequently Asked Questions

What makes a condo ineligible for an FHA loan or reverse mortgage?

High delinquencies, low reserves, litigation, or missing insurance.

Can you get a reverse mortgage on a condominium?

Yes—if the condo passes FHA Single-Unit Approval.

What should I ask the HOA first?

Occupancy, delinquencies, reserves, insurance, assessments, litigation.

Icons of agent, advisor, homeowner — Agents, advisors, and informed homeowners rely on this checklist.

About the Author

Christopher Gibson is a mortgage loan officer licensed in CO, FL, MI, TX, GA, and WA, and a former real-estate agent. He specializes in FHA reverse mortgages and condo lending strategies.

Next step: Download the HOA checklist & email template to screen any condo before applying.

Need advice? Email Chris directly.