Buy the Home You Want Without Monthly Payments
The HECM for Purchase program lets eligible homeowners 62 and older buy a new primary residence using reverse mortgage financing — keeping more cash in their pocket from day one.
No obligation. Speak with a licensed advisor today.
A smarter way to buy your next home
Most people know a reverse mortgage as a way to access equity in a home they already own. What far fewer people realize is that the same government-insured program can also be used to purchase a brand new home.
The HECM for Purchase — sometimes called H4P — is a federally insured loan that allows homeowners aged 62 and older to buy a new primary residence using a combination of their own funds and reverse mortgage proceeds. The result: you move into your new home and make no monthly mortgage payments for as long as you live there.
It is a program specifically designed for the realities of retirement — giving you the freedom to right-size your home, relocate closer to family, or move into a more manageable property, all without the burden of a traditional monthly mortgage payment.
See the difference for yourself
Here is how buying a home with a HECM for Purchase compares to a traditional mortgage purchase.
Traditional Mortgage
- 1Make a down payment
- 2Finance the remainder with a traditional mortgage
- 3Make monthly principal and interest payments for the life of the loan
- 4Build equity gradually over time through monthly payments
Outcome:
You own the home — but you have a monthly mortgage payment for years to come.
HECM for Purchase
- 1Make a larger one-time down payment (typically 45–62% of the price)
- 2Finance the remainder with a HECM reverse mortgage
- 3Move in — with no required monthly mortgage payment
- 4Preserve your remaining savings and cash flow for retirement
Outcome:
You own the home — but you DON'T have a monthly mortgage at any time in the future.
Why homeowners 62+ are choosing HECM for Purchase
Preserve Your Savings
With a traditional mortgage, a large portion of your savings goes toward monthly payments. With a HECM for Purchase, those savings stay in your pocket — available for healthcare, travel, emergencies, or simply peace of mind.
No Monthly Mortgage Payment
As long as you live in the home as your primary residence and meet your loan obligations, you are not required to make monthly mortgage payments. This is one of the most powerful financial advantages the program offers.
Government-Insured Protection
The HECM for Purchase is insured by the Federal Housing Administration. This means you will never owe more than the home is worth at the time the loan is repaid — regardless of what happens to the market.
The HECM for Purchase was built for moments like these
Right-Sizing
“Our kids have moved out and we're rattling around in a five-bedroom house. We want something smaller, easier to maintain — and we don't want a new mortgage hanging over us in retirement.”
Relocating Closer to Family
“Our grandchildren are three states away. We've been thinking about moving closer for years. With a HECM for Purchase, we can make that move without depleting the savings we've spent a lifetime building.”
Upgrading for Accessibility
“Stairs are becoming a real challenge. We want a single-story home with wider doorways and a walk-in shower. We just didn't think we could afford to buy something new at this stage of life.”
Here's what it could look like in practice
Every situation is different — this example is for illustrative purposes only. Your advisor will provide figures specific to your age, home value, and financial situation.
Home Purchase Price
$400,000
Estimated Down
$220K
Financed via HECM
$180K
Mortgage Payment
$0
The older the borrower, the less down payment is typically required — because older borrowers have a shorter expected loan term.
Disclaimer:
This example is for illustrative purposes only. Actual figures vary based on the borrower's age, current interest rates, home purchase price, and other factors. Contact a Home Reverse advisor for a personalized estimate.
What types of homes qualify?
The HECM for Purchase program covers a wide range of property types. Here is a quick overview — your advisor can confirm eligibility for your specific property.
Note:
Vacation homes, second homes, and investment properties are not eligible for the HECM for Purchase program.
Single-Family Homes
The most common property type. Standard single-family homes meeting HUD guidelines are fully eligible.
Approved Condominiums
Condominiums must be on the FHA-approved list. Your advisor can quickly verify whether a specific condo qualifies.
Townhomes
Owner-occupied townhomes and Planned Unit Developments (PUDs) that meet HUD guidelines are eligible.
Multi-Unit Properties
Owner-occupied 2 to 4 unit properties are eligible, provided the borrower occupies one of the units as their primary residence.
How to buy a home with a HECM for Purchase
Connect With an Advisor
Review your age, finances, and goals.
Get Pre-Qualified
Receive a pre-qualification letter for your offer.
Find Your New Home
Choose a qualifying property with your agent.
Complete HUD Counseling
Finish required no-cost counseling.
Close and Move In
Move in with no monthly mortgage payment.
Their Dream Retirement Home Without Monthly Payments
Frequently asked questions
Reverse mortgages can seem confusing. Here are answers to the questions homeowners ask most.
Buy your next home without monthly mortgage payments.
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