Can I get a Reverse Mortgage to Purchase a Home?

Can I get a reverse mortgage to purchase a home?  You can get a reverse mortgage to purchase a home.   Home Equity Conversion Mortgage (HECM) for Purchase allows seniors, age 62 or older to purchase a new principal residence and obtain a reverse mortgage within a single transaction.  The program can also be used by seniors who want to relocate to other areas of the country or downsize to homes that meet their specific needs.  The difference between the purchase price of the home and the HECM proceeds must be paid in cash or from the sale of an existing home.  If you are using cash to make up the difference, the cash must be “seasoned” for 60 days.  Cash from a gift is not acceptable. 

The property may be one to four family units, condominiums, fully completed home with certificate of occupancy or equivalent or land contracts.  All major repairs involving critical health and safety and structural integrity issues have to be taken care of  by the seller before the transaction can close.  You must occupy the property within 60 days after closing.

Be prepared to pay all of the normal costs associated with selling and buying property as well as the normal reverse mortgage fees.  Title to the property is transferred to you (the mortgagor).  At the time of closing, the HECM first and second liens will be the only liens against the property.  Lenders are required to ensure all outstanding or unpaid obligations incurred by the prospective mortgagor, in connection with the HECM transaction are satisfied at closing.