Can You Use A Reverse Mortgage To Purchase A New Home?
One option in the broader category of using reverse mortgages for debt coordination for housing is the HECM for Purchase program, which was started in 2009 as a way to use a reverse mortgage to purchase a new home. The government saw enough people using a more costly and complicated two-step process—first obtaining a traditional mortgage to purchase the home and then using a reverse mortgage to pay off that mortgage—and sought to simplify the process and costs.
Pfau, Wade D. PhD, "Can You Use A Reverse Mortgage To Purchase A New Home?" (2016). Faculty Publications. 676.