Yes, you can buy a home using your reverse mortgage funds. There no restrictions on how you use the money from your loan. Also, a new program called a HECM for Purchase has been introduced by HUD. It allows for seniors and older with a single family residence to obtain a reverse mortgage and purchase a new primary residence in one single transaction.

This is a relatively new program with many factors and rules involved, so if you are interested, I recommend you contact on of our Professionals here at AAG and we can walk you through it. Whether you choose to use the HECM for Purchase Program or not, you are still welcome to buy the home with your reverse mortgage funds.

As for closing costs of a reverse mortgage, you don't need any cash. Usually all the closing costs and origination fees are lumped into the loan itself, so you don't have to pay them out of pocket while acquiring your loan.

Disclaimer: The response above is not intended to be anything other than the educated opinion of the author. It should not be relied upon as financial advice. America Advisors Group recommends speaking directly with an AAG Reverse Mortgage Professional regarding your specific situation and needs. Please call 1 (800) 466-0572 to receive AAG's information pack with a FREE DVD and Brochure featuring Former Senator Fred Thompson.