Can a reverse mortgage be obtained on a rental property?
In most cases the answer is no, but it may be possible in certain situations.
A reverse mortgage can only be used on a property that serves as the home owner’s primary residence that they live in for more than six months out of the year. In other words, a reverse mortgage cannot be used on a vacation home, part-time residence or property that is rented out to someone else.
However, reverse mortgages do allow the borrower to finance their rental property if the property consists of 2-4 units and at least one of the units is being used as the home owner’s primary residence.
For example, if you own a duplex (2 units) and you live full time in one of the units and rent out the other one, you can obtain a reverse mortgage for that property, given the other requirements of the loan are met.
At First Nations Home Mortgage we answer questions about reverse mortgages every day. Call us today and let us work for you