Home Business & Reverse Mortgage

Errolajay,

Properties with an income producing business in them are not eligible for a reverse mortgage. The only case by case exception that is sometimes made is if the commercial business does not exceed 25% of the GLA + Improvements. “GLA” refers to the entire square footage of the property and “Improvements” refers to any additions to the dwelling (i.e. garage, guest home, etc.).

I hope this helps!

Steven Pace

What kind of business do you have in your home?

I am a Reverse Mortgage Specialist, and in the six years I have been originating reverse mortgages, I have never had one denied for this reason.

I will be happy to ask my underwriting department, if you'll give me more information.

Tam :)

To Tam :) and Steven Pac, thanks for your answers to my question.
The type business is Home Improvement. The home provides office space and an address for the business.

I cannot see a reason why that would be a problem.

The only time a reverse mortgage would be impacted by a home based business is when the home is used as daily lodging. A very good example would be a bed and breakfast.

I have many customers who have business that they run from their homes.

I hope that helps.

Please dont hesitate to contact me should you have further questions.

tfield @ financialfreedom.com
877-632-7890

Tam :)