If you're 62 or older, a HECM for Purchase lets you buy a new primary residence using a combination of your own funds and reverse mortgage proceeds, with no required monthly mortgage payment on the new home. You still pay property taxes, homeowner's insurance, and maintenance.
It's one transaction that combines buying a home and setting up a reverse mortgage. Instead of paying all cash or taking on a traditional loan with monthly payments, you put down a portion of your own funds and the FHA-insured HECM covers the rest.
The result is a home you own, in your name, with no required monthly principal and interest payment. As with any HECM, you remain responsible for property taxes, homeowner's insurance, and keeping the home maintained, and it must be your primary residence. This is not a commitment to lend.
Most people use it when they're already planning to move, so the sale of the current home and the purchase of the new one line up naturally.
Moving to something single-level, lower-maintenance, or closer to the things that matter, without taking on a new monthly mortgage payment.
Buying near children or grandchildren, often in a different town or state, while keeping more of the proceeds from the previous home.
Purchasing the next home without draining retirement accounts or paying all cash, so more of your savings stays invested and available.
You bring a down payment from your own funds, typically the proceeds from selling your current home, and the reverse mortgage covers the balance of the purchase price. The amount the HECM covers depends on the age of the youngest borrower, the home's value, and rates at the time.
Think of it as meeting in the middle. Instead of financing the whole purchase and making payments, or paying entirely in cash, you split it: your down payment plus the HECM proceeds together fund the home.
Example uses a 72-year-old and a $400,000 home for illustration. Actual amounts vary by age, appraised value, rates, and program at the time of application. Not a commitment to lend.
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A standard HECM refinance comes with a three-day right of rescission after closing. That right does not apply to HECM for Purchase transactions, because it's a purchase, most fund at closing, the same as any home purchase.
Everything else follows the same consumer protections as any FHA-insured HECM, including mandatory independent HUD-approved counseling before you apply. I help you schedule that early so it never slows the file down.
If you work with buyers 62 and older, a HECM for Purchase can widen what they can comfortably afford, without adding a monthly mortgage payment to their retirement budget. That can turn a "we'll pay cash and stretch" conversation into a stronger offer with cash left over.
You don't need to know the product. Send me the scenario, the buyer's age, the target price range, and roughly what they're working with, and I'll tell you quickly whether it fits. I handle the education, counseling, application, and close, and I keep you informed without creating extra work for you.
No cost, no obligation. You talk to me, not a call center, and I respond personally within one business day.
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The summary is an estimate for your own use, not a loan offer or a commitment to lend.