Cohousing-L Mailing List: Re: Reverse Mortgages in Cohousing

[Sharon Villines (sharon]

> On Apr 15, 2025, at 12:38 PM, Mary Kay Doyle <marykaydoyle [at] gmail.com> 
> wrote:
> 
> I am the treasurer for Elderberry Village in NC. We have a prospective
> member who wants to purchase one of our units (cash), then get a reverse
> mortgage on her new Elderberry house. We are concerned about the risk that
> could create if she moves or dies.

Certainly consult your attorney but a reverse mortgage shouldn’t be any riskier 
than any other mortgage. But there may be some restrictions on how soon she can 
apply for a reverse mortgage and a lower limit on the amount. She may have to 
live there a certain length of time before she is eligible for a reverse 
mortgage. Reverse mortgages are often lower than a regular mortgage, meaning 
you can only borrow a lower percentage of the appraised value.

Sharon
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Sharon Villines
Takoma Village Cohousing, Washington DC
http://www.takomavillage.org