The U.S. Department of Housing and Urban Development (HUD) has issued guidelines for the purchase of homes by seniors utilizing the FHA-insured Home Equity Conversion Mortgage (HECM) program.
Under amendments to the HECM program recently enacted as part of the Housing and Economic Recovery Act of 2008, qualifying buyers will be able to purchase new homes with reverse mortgages, thus avoiding taking on any monthly mortgage payments as part of the transaction, according to the National Reverse Mortgage Lenders Association. The program will take effect Jan. 1, 2009.
Source: National Reverse Mortgage Lenders Association
Residential Mortgage
