By Steven Hyde, Founder, Hyde Funding · NMLS #391380. Reviewed October 30, 2026. Hyde Funding is a mortgage lender headquartered in San Diego, lending nationwide since 2015.
Short answer: Yes. For an FHA-insured HECM, the condo project generally must be FHA-approved, though in some cases a unit can qualify through FHA single-unit approval. You can check a project’s status with HUD’s condo lookup. If your building isn’t approved, a proprietary (jumbo) reverse mortgage may have more flexible condo rules.
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HECMs are insured by FHA, and FHA reviews condo projects for owner-occupancy, budget, reserves, insurance and litigation. HUD’s HECM handbook requires eligible condos to be part of a HUD-approved project (HUD Handbook 4235.1). FHA now also allows single-unit approvals in some unapproved projects. Whether your unit qualifies depends on the building, so we check before you pay for an appraisal.
HUD’s public FHA condo lookup tool lets you search approved projects by name, city or ZIP code. If your complex shows a current approval, that’s a good start. If it isn’t listed or the approval has expired, we’ll look at single-unit approval or a proprietary reverse mortgage. Your HOA manager can supply the budget, insurance and occupancy details an approval needs.
With any reverse mortgage, you must keep paying property taxes, homeowners insurance (usually an HO-6 policy plus the HOA master policy) and HOA dues. Unpaid dues can lead to a lien and a loan default, and special assessments count too. The financial assessment reviews how you’ve paid these charges, and a set-aside may be required. See our guide to property tax and insurance obligations.
Some private, non-FHA reverse mortgages have their own condo guidelines and can work in buildings without FHA approval. They’re also used for higher-value condos in La Jolla, downtown and along the coast. Because they aren’t FHA-insured, costs and protections differ. Read our jumbo reverse mortgage guide.
If you’re selling a house to move into a condo, a HECM for Purchase combines your down payment with reverse mortgage proceeds, and no monthly mortgage payment is required afterward. The condo must still meet FHA approval rules, so keep that in mind when you choose a building. See our downsizing guide.
HUD’s handbook lists co-op units as ineligible for HECMs. Planned unit developments are usually treated like single-family homes. A townhome can be legally set up as either a condo or a PUD, so we check the title report.
Whatever your question, these basics apply. A Home Equity Conversion Mortgage (HECM) is the FHA-insured reverse mortgage most homeowners use. The youngest borrower must be at least 62, the home must be your primary residence, and you need enough equity. Any existing mortgage is paid off at closing. Counseling with an independent HUD-approved counselor is required before you apply (HUD counselor search). The lender then reviews your income, credit and history of paying property charges.
No monthly mortgage payment is required. Interest and mortgage insurance are added to the loan balance, so it grows over time and your equity shrinks. You keep title, and you must keep paying property taxes, homeowners insurance and HOA dues and maintain the home. The loan is repaid when the last borrower, or an eligible non-borrowing spouse, sells, moves out permanently or passes away. A HECM is non-recourse: neither you nor your heirs will ever owe more than the home is worth when it is sold (CFPB). For higher-value homes, a proprietary jumbo reverse mortgage may be an option, but it isn’t FHA-insured and its terms differ. See how reverse mortgages work for a full walkthrough.
Bring this list to your HUD counseling session and to your call with Steven at (858) 775-1005.
Hyde Funding is a San Diego mortgage lender founded in 2015, with an office at 8996 Miramar Rd. Suite 250. Steven Hyde (NMLS #391380) will walk you through whether your condo qualifies in plain English and compare HECM and proprietary reverse options. Your family or advisor is welcome on the call. Every HECM borrower first completes independent HUD-approved counseling (find a counselor on HUD.gov). Start with a free reverse mortgage consultation, read the reverse mortgage hub, or see reverse mortgages in San Diego.
Yes, if the project is FHA-approved or the unit qualifies for single-unit approval. A proprietary reverse mortgage that accepts your building is another option.
Search for the project in HUD’s FHA condo lookup tool, or call us and we’ll check.
Yes. HOA dues, property taxes and insurance must stay current.
No. HUD’s HECM handbook lists co-op units as ineligible.
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Steven Hyde, NMLS #391380 (NMLS Consumer Access). Equal Housing Opportunity. Reverse mortgage borrowers must live in the home as their primary residence, keep paying property taxes, homeowners insurance and HOA dues, and maintain the home, or the loan may become due. The loan balance grows over time. HECMs are insured by FHA. Hyde Funding is not affiliated with HUD, FHA or any government agency. This is general information, not a commitment to lend. Consult a financial or tax advisor.