Reverse mortgage variation is aimed at seniors looking to downsize - Los Angeles Times

Borrowers may sell their current residence and use a reverse mortgage to buy a new one in a single transaction.
By Lew Sichelman
April 12, 2009
Reporting from Washington -- That Ralph and Plum Smith bought a house last month in Brookings, Ore., is not terribly remarkable, at least not until you learn that he's 84 and she's 77. But what is even more noteworthy is that the couple didn't pay cash for their new $240,000 home, yet they will have no mortgage payments.

The Smiths are among the first seniors in the country to close on a Home Equity Conversion Mortgage (HECM) for Purchase, a form of federally insured reverse mortgage authorized in the Housing and Economic Recovery Act of 2008. The law took effect Jan. 1.


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