Current Home Equity Conversion Mortgage (HECM) mortgagors that plan to sell their existing residence and use the HECM for Purchase program to obtain a new principal residence must pay off the existing FHA-insured mortgage before the HECM for Purchase mortgage can be insured.
For additional information see Mortgagee Letter 2009-11 available at https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee