Reverse Mortgage Sale

[Egbavwe Pela]

Hello,

This has been an amazing community. First time posting for me. 

I'm currently interested in a property that I just found out has a reverse mortgage on. I believe the listing price is higher than the property is worth especially with the condition of the property.  Additionally the reverse mortgage amount (approximate listing price is over valued). 

For numbers let's say the property is listed at $450, the reverse mortgage is $455. 

I've read a lot that the reverse mortgage company has to accept or sell within 95% of the FHA value of the home. If this is true, would I be better off using an FHA mortgage to get the FHA appraisal (which is more strict when it comes to safety)? Or would I be opening up a can of worms for the family who is not in the financial place to get the house up to code?

Any advice on how to get a fair price on the property?  The family is not looking to make money on the deal just get out of reverse mortgage. 

Ant advice is greatly appreciated.