Hawaiʻi Condo Reverse Mortgage Eligibility (2025 Full Guide)

Hawaiʻi condo reverse mortgage eligibility is one of the most important topics for seniors who want to age in place while using their home equity for financial stability. With so many condos across Honolulu, Waikīkī, Kakaʻako, Maui, and other island communities, kupuna often wonder whether their specific unit or building qualifies for a reverse mortgage — and the answer is often yes, even when the building is not FHA-approved.

This updated 2025 guide explains exactly how condo eligibility works in Hawaiʻi, what rules apply, and which options seniors can use to qualify.

There are two major pathways that determine Hawaiʻi condo reverse mortgage eligibility:

1. FHA-Approved Condos (HECM Program)

The most common reverse mortgage is the HECM, insured by the FHA.

A condo can qualify for a HECM reverse mortgage if:

• The entire condo project is FHA-approved, or
• Your specific unit is approved through Single-Unit Approval (SUA)

Single-Unit Approval is one of the biggest changes helping Hawaiʻi condo owners — especially in older Honolulu buildings or mid-rise complexes that were never FHA-approved.

FHA Requirements for Condo Eligibility

To approve the project or unit, FHA looks at:

• HOA financial health
• Insurance coverage
• Owner-occupancy ratios
• Pending litigation
• Reserve funding
• Building safety

If these requirements are met, the condo likely qualifies for a HECM reverse mortgage.

Here’s a quick comparison tailored to Hawaiʻi seniors:

HECM Reverse Mortgage (FHA)

Best for:

• Buildings that are FHA-approved
• Seniors wanting the strongest federal protections
• Borrowers who prefer a growing line of credit
• Condos valued under ~$1.3M

Jumbo Reverse Mortgage

Best for:

• Condos not on the FHA list
• Owners in luxury or high-value buildings
• Buildings with stricter HOA rules
• Seniors needing a larger loan amount

Because Hawaiʻi values are high, jumbo programs are used frequently across Oʻahu and Maui.

A condo may not qualify for HECM if:

• HOA is in litigation
• Reserves are too low
• Insurance coverage is insufficient
• Too many units are investor-owned
• Project fails FHA safety rules

Even then, a jumbo reverse mortgage may still approve the condo.

Your loan estimate depends on:

• Your age
• The value of your condo
• Your remaining mortgage
• Property type (FHA or jumbo)
• Program requirements
• Interest rates

Because Hawaiʻi condo values are strong, payouts are often competitive — especially under jumbo programs.

Understanding Hawaiʻi condo reverse mortgage eligibility is the key to unlocking financial flexibility for seniors who prefer condo living. With options like FHA approval, Single-Unit Approval, and jumbo reverse mortgage programs, thousands of condo owners in Hawaiʻi now qualify — even when their building doesn’t appear on any FHA approval list.

A reverse mortgage can help kupuna:

• Stay in their home
• Cover rising Hawaiʻi living expenses
• Pay for caregiving support
• Make safety upgrades
• Improve financial stability