Under the FHA rules, a new construction condo project that has at least 30% primary occupancy is eligible for FHA Financing. I would hope this includes reverses. Since it is under construction, I would imagine we would have to have a CO first. Is that right? This would not let us do reverse mortgage under the new project requirement.
The 30% primary occupancy is an FHA requirement so it does also apply to HECM loans. Sorry for the delay, I wanted to make sure that was still the threshold. As far as new construction, yes, we need the CO dated prior to the case assignment/application on a HECM loan.