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by CareyBot

"My wife and I are 64 years old and can qualify for a reverse mortgage on our current house, but we want to relocate first. Can we buy a new house with a "forward" mortgage, and then take out a reverse mortgage?" Yes, but you will have to make a sizeable down payment on the new house. When you take out a reverse mortgage, you must repay any existing forward mortgages on the house. You do that by drawing a lump sum under your reverse mortgage equal to the balance of the forward mortgage. The balance must be smaller than the amount you can draw under a reverse mortgage. For example, suppose you pay $200,000 for your new house. A married couple both of whom are 64 can draw a lump sum under a Home Equity Conversion Mortgage (HECM, which is the FHA reverse mortgage), secured by that house, ...