Can a reverse mortgage be placed on a property that’s zoned “agricultural”? The property consists of 20 acres and 13 of those acres are used to grow hay.
Agricultural zoned properties may be acceptable depending on the comps available, and the primary utility of the property being residential. However, the primary utility of the property must be residential and the highest and best use must be residential not something else. Income producing property is not eligible for the HECM program. If the borrower filed a Schedule F (Farm Income) for the subject property, this would make the property ineligible for the HECM program as it would be income producing.