By Tyler Plack
Tyler Plack is the President of South River Mortgage. Tyler holds an active FHA Direct Endorsement (DE) underwriting certification and is the author of The Retirement Solution: Maximizing Your BenefitTyler is a seasoned entrepreneur and real estate investor renowned for his expertise in reverse mortgages and his commitment to addressing seniors' equity challenges. Tyler brings a unique perspective to his ventures, having built several successful companies throughout his career. His insights are frequently sought by industry publications, where he is recognized for his vast knowledge in the realm of reverse mortgages.
An avid investor in income-producing properties, Tyler is dedicated to helping seniors navigate their financial needs with compassion and expertise. When Tyler is not helping solve America's retirement crisis, he is a skilled pilot flying airplanes for fun.
Many homeowners worry about this before applying for a reverse mortgage.
What if the home isn’t in perfect shape?
Maybe the gutters are worn. A tree is too close to the roof. Some siding is damaged.
Does that mean you cannot qualify?
In many cases, you can still get a reverse mortgage. It depends on how serious the repairs are and whether they affect safety.
Here’s how it works in simple terms.
Why Home Condition Matters for a Reverse Mortgage
Most reverse mortgages are FHA-insured Home Equity Conversion Mortgages (HECMs). Because of this, the home must meet basic safety and property standards.
An appraiser checks that the home is:
- Safe to live in
- Structurally sound
- Properly maintained
The goal is not perfection. The goal is a home that is safe and livable.
Repairs That Usually Do Not Stop Approval
Many common issues are considered minor and typically do not prevent approval.
Examples include:
- Worn or damaged gutters
- Small areas of siding damage
- Overgrown landscaping or small trees near the home
- Normal cosmetic wear like old paint or flooring
These may appear in the appraisal report, but they rarely block the loan.
Repairs That Can Delay or Prevent Closing
Some problems are considered health or safety hazards.
These usually must be fixed before the loan can close.
Common examples include:
- Roof leaks or major structural damage
- Exposed electrical wiring
- Broken windows or unsafe stairs
- Severe water damage or mold
- Missing smoke detectors or safety features
If the appraiser flags a safety issue, the lender must address it before approval.
Can Reverse Mortgage Funds Be Used to Pay for Repairs?
Sometimes, yes.
There are two main paths:
1. Repairs completed before closing
The homeowner fixes the issues so the loan can move forward normally.
2. Repair set-aside after closing
In certain cases, part of the reverse mortgage funds is reserved to pay for required repairs. This is called a repair set-aside.
Whether this is allowed depends on:
- The size of the repair
- FHA guidelines
- Lender approval
Not every situation qualifies, but it is possible.
What About Smaller Repairs Like Gutters, Trees, or Siding?
In many situations, these issues alone will not stop approval.
The key question is simple:
Does the appraiser consider the issue a safety hazard?
- If no, the loan can usually proceed.
- If yes, the repair must be fixed or handled with a repair set-aside.
Are You Eligible for a Reverse Mortgage?
(Find out in 60 seconds)
How to Improve Your Chances Before Applying
A little preparation can make the process smoother.
Before the appraisal, it helps to:
- Fix clear safety problems
- Install working smoke and carbon monoxide detectors
- Repair leaks or structural concerns
- Remove exterior hazards like unstable steps or large dead trees
You do not need a full remodel. You only need a safe, livable home.
The Bottom Line
You can often qualify for a reverse mortgage even if your home needs minor repairs. Cosmetic issues are usually not a problem.
However, safety hazards must be fixed before the loan can close.
The best first step is to speak with a reverse mortgage specialist who can review your situation and explain your options clearly.
Final Thoughts
A home that needs small repairs does not automatically prevent you from getting a reverse mortgage.
In many cases, the solution is simple once you understand the rules.
At South River Mortgage, we help homeowners:
- Review property condition
- Understand repair requirements
- Move forward with confidence
If you want to see how much you could qualify for, the next step is easy.
Check Your Eligibility in Seconds
You can view your estimated reverse mortgage proceeds using our free calculator. There is no obligation, and it only takes a minute.
Get your instant quote today and see what may be possible for your home and retirement.
Frequently Asked Questions
Will a few repairs automatically disqualify me?
No. Many homes with minor repairs still qualify. Only serious safety or structural problems usually delay approval.
Who decides whether repairs are required?
The appraiser identifies issues, and the lender follows FHA rules to decide what must be fixed.
Can I use reverse mortgage money to fix my home?
Sometimes. Funds may be placed in a repair set-aside to complete required work after closing.
What repairs are most likely to cause problems?
Safety hazards, structural damage, roof leaks, water intrusion, or electrical risks are the most likely to require repair before closing.
Do cosmetic problems matter?
Usually not. Worn paint, older flooring, or small exterior damage rarely stop approval unless they create a safety concern.
Should I fix things before applying?
If you already know about safety issues, fixing them early can speed approval and reduce stress.
What is the best first step?
Speak with a reverse mortgage professional who can review your home’s condition and guide you through the process.
Clear guidance early helps prevent surprises during the appraisal.
