Mortgage Lending: 10.3.8 HECM for Purchase
The Housing and Economic Recovery Act of 2008 authorized a new reverse mortgage product that allows older consumers to purchase a principal residence with HECM loan proceeds.102 The program was designed to enable older homeowners to relocate to other geographical areas to be closer to family members or downsize to homes that meet their physical needs. The details of the HECM for Purchase program are similar in most regards to the traditional HECM program.