Its an important question.You should get answer from any reliable reverse mortgage company. I have a reverse mortgage which name is reverse mortgage lenders direct. They are very helpful. You can get right answer from their by search
I would imagine that they could purchase another home, but they would need to re-finance the Reverse Mortgage into a Conventional mortgage as a reverse mortgage is only allowed for an owner occupied home. Even if they paid cash for the new home, they would need to notify their reverse mortgage lender of their move. Hope this helps!
Micah Riley, Realtor
866-685-7476 ext 2301
New Penn Financial
I know that in order to obtain this type of loan it must be a primary residence, which it was at the time of the loan. I am not certain however, if there can be any such language in a mortgage preventing an individual from purchasing another home. The conditions of the loan will be spelled out in the mortgage loan documents. If you have them available, I'd start with reviewing the mortgage loan documents that your parents signed to understand what, if any, stipulations are tied with this loan.
Feel free to contact me if you have any additional questions!
I am a Realtor in the Stow area, and I'd be happy to assist you and your parents. I can connect you with lenders that can give you the proper advice concerning the reverse mortgage, and help them find the new home.
Chris Hallum, Keller Williams Chervenic Realty
They can keep the house but they can not keep the reverse mortgage... they would have to refinance into a different mortgage. One of the stipulations of the reverse mortgage is that it is for the primary residence... So, they may be able to use a new reverse to purchase the new home...
Really need to talk with a reverse mortgage specialist they are a tricky item but that is the basic answer to get you started... Hope it helps.