If you are a homeowner age 62 or older and have paid off your mortgage or paid down a considerable amount, and are currently living in the home, you may participate in FHA’s Home Equity Conversion Mortgage (HECM) program.
HECM for Purchase allows seniors, age 62 or older, to purchase a new principal residence using loan proceeds from a reverse mortgage in a single transaction.
For some retirees, a standby reverse mortgage strategy combined with their saving may increase their chances of meeting their retirement goals. They would draw on a reverse mortgage when the financial markets are correcting and their account values are down and preserve their retirement accounts.