“Taking you from where you are
………. to where you want to be”

HECM for Purchase

What is HECM for Purchase?

Home Equity Conversion Mortgage (HECM) for Purchase allows seniors, with at least one borrower age 62 or older, to purchase a new primary residence. Combine your down payment with loan proceeds from the reverse mortgage to purchase a home! Specifically, the program allows seniors to purchase a (new to them) principal residence with a reverse mortgage in a single transaction. This enables senior homeowners to relocate – move closer to family members, find the retirement home of their dreams, and perhaps downsize to a home that meets their current needs.


A HECM for Purchase (H4P) transaction has all of the same requirements as a reverse mortgage and is specifically designed to help a senior purchase a new residence without being burdened with new monthly debt. Some specifics-
  • The youngest homeowner is age 62 or older
  • The purchased home will be primary residence
  • The purchased home will be occupied within 60 days of closing
  • No other mortgage loan other than the HECM can be used to buy the home
  • The down payment must be paid in cash from reserves or quite often the proceeds from the sale of an existing home

Additional Details:

The amount that can be borrowed under a HECM for purchase, as with a traditional HECM mortgage, will be dependent on three factors –
  • age of the youngest borrower,
  • current interest rates,
  • and the lesser of the value of the property being purchased or the HECM loan limit.
When comparing a HECM for Purchase to a refinance HECM mortgage, the significant difference is the down payment at closing with a HECM for Purchase creates equity rather than having equity in a home you already own.