Absolutely. However if you would like to retain your existing home, you will need to show sufficient income to cover payments for both properties. That includes any Principal, Interest, Taxes, Insurance, HOA, Condo dues and any other property-related charges.
Another item to consider is the type of mortgage that you have on your existing home. You are generally only allowed to have one FHA loan at a time. If you do have an FHA loan, it will likely need to be paid off prior to obtaining the new HECM reverse mortgage. Below are some exceptions to the rule in which FHA will allow a borrower to have more than one FHA loan:
- Relocation. You may be eligible for a new FHA loan if you are relocating for an employment related reason and the new area is more than 100 miles from your current home.
- Increase in family size. If your family has grown since you moved into your current home with an FHA loan and the home no longer meets your family’s needs, you could qualify for a new FHA loan.
- Leaving a jointly owned property. If you are leaving your current principal residence with no intent to return and the residence will continue to be occupied by the co-borrower, you may be able to obtain an additional FHA loan. Read more about using a reverse mortgage in a divorce situation.
- Non-occupying co-borrower. If you were a non-occupying co-borrower on a current FHA loan, but don’t reside in the property, you may be eligible for another FHA loan.
At the end of the day, it may be best to reach out to us directly to review your scenario.