The program was designed to allow seniors to purchase a new principal residence and obtain a reverse mortgage within a single transaction. The program was also designed to enable senior homeowners to relocate to other geographical areas to be closer to family members or downsize to homes that meet their physical needs.

Existing one-to-four unit properties where construction has been completed and the property is habitable as evidenced by local jurisdiction issuance of certificate of occupancy or its equivalent. 

No. The lender may only take an application once the Certificate of Occupancy or its equivalent has been issued.

No. Prospective mortgagors may only use their own money or money obtained from the sale of their assets. 

Acceptable funding sources include withdrawals from the mortgagor's savings or retirement accounts.

No. All outstanding obligations connected to the HECM transaction, purchase or otherwise, must be satisfied prior to or on the date of closing.

No. Seller concessions are applicable to forward mortgages only.

Yes.

No. These other financing methods are prohibited, unless the unpaid or outstanding obligation can be satisfied prior to or on the day of closing.

Yes. Even if only one of you is included in the reverse mortgage, the creditor can obtain a credit report of your spouse in order to verify the extent of his/her financial obligations, which could put at risk this loan in the future.

You may cancel at any time before the closing date. If you decide to cancel you must notify the creditor in writing.

No. When purchasing a new principal residence, the HECM mortgagor has 60 days to occupy the home.

No. FHA encourages all first-time homebuyers to meet with a reverse mortgage counselor that offers pre-purchase counseling to educate themselves on the responsibilities of becoming a homeowner. Prior to signing a sales contract, FHA encourages a home inspection of all properties that will serve as collateral for HECM for purchase transactions. The inspection serves two purposes: (1) to determine the magnitude, if any, of repairs and/or rehabilitation necessary for the home; (2) to negotiate the purchase price in situation where a home requires repair or rehabilitation.