Mark Greene Law

Reverse Mortgages: The FHA Modernization Act has made may changes to reverse mortgages (the Home Equity Conversion Mortgage or HECM). One of the more interesting changes is that a senior can now use a HECM to purchase a home. This could be a useful vehicle for senior who are downsizing. Previously, a senior would sell the larger home and pay full cash for the new smaller home. Now they can use the HECM purchase mortgage to finance a substantial part of the new home price, pay less cash from the sale of the larger home and have no mortgage payments. I suspect that an increase of real estate brokers marketing “half price’ homes.