Our take: Sure, you can try any combination of financing arrangements with cash that you have available to buy a new home. Again, if you choose to use a reverse mortgage to finance part of the purchase, be aware of the costs involved and make sure you understand how the reverse mortgage works. In your example, the homeowner will have cash from the sale of their old home. They also will have income from Social Security. The next question will be whether they can obtain a conventional mortgage from a lender. If not, then perhaps using a reverse mortgage to finance the balance of the purchase would work.