Buy a new primary residence, and make no monthly mortgage payment. Right-size your home and your finances at the same time.
Most people have never heard of it, but the HECM for Purchase (H4P) is one of the most useful programs available to homeowners 62 and older who want to move. It lets you buy a new primary residence using a combination of a down payment and reverse mortgage proceeds, without taking on a monthly principal-and-interest payment going forward.
Here is the idea in plain terms: instead of paying all cash for your next home, and draining your savings, or taking on a conventional mortgage with a monthly payment, you put down roughly 50% to 70% of the purchase price, the share runs higher when interest rates are higher, and the HECM funds the rest. You move in, you owe no monthly mortgage payment, and you keep more of your cash for living expenses, travel, healthcare, or emergencies.
It is the same federally-insured HECM program, with the same consumer protections, independent HUD counseling, FHA insurance, and a non-recourse guarantee, applied to the home you are buying rather than the one you already own. And it all happens in a single transaction.
Imagine you sell your current home and want to buy a $500,000 single-level home closer to family. The figures below are illustrative, your actual down payment depends on your age and current rates, but they show the shape of the program.
Instead of spending the full $500,000 in cash, you keep a meaningful portion of your home-sale proceeds, and you still owe no monthly mortgage payment. You right-size your home and preserve your liquidity in one move.
We look at your current home, the home you want to buy, your age, and your goals. We calculate the required down payment and show you exactly how the numbers work, before you make an offer. There is no cost to plan it out.
As with any HECM, you complete a session with an independent HUD-approved counselor who has no financial interest in your decision. Because a purchase is time-sensitive, we schedule this early so it never delays your closing.
You shop for the right home, single-level, closer to family, better climate, whatever fits this stage of life. The home must be your primary residence and meet FHA property standards. We coordinate with your real estate agent so the financing lines up with the purchase.
A licensed appraiser values the new home. The reverse mortgage amount is calculated from your age, the home value, and current rates, which determines your required down payment. A Financial Assessment confirms you can meet ongoing property charges.
At closing, your down payment and the reverse mortgage combine in a single transaction. You take ownership of the new home and occupy it within 60 days. From that point forward, there is no monthly mortgage payment, you remain responsible only for property taxes, insurance, and upkeep.
A HECM for Purchase (H4P) lets homeowners age 62 and older buy a new primary residence using a combination of a down payment and reverse mortgage proceeds, without taking on monthly principal-and-interest payments going forward. It's the FHA-insured HECM applied to a home purchase rather than to a home you already own, and it's especially useful for downsizing, moving closer to family, or buying a home better suited for aging in place.
The buyer typically contributes between 50% and 70% of the purchase price, with the exact amount set by the age of the youngest borrower and current interest rates, the older you are, the smaller the required down payment. The down payment generally comes from the sale of your current home, savings, or other assets, and the reverse mortgage funds the rest. No monthly mortgage payment is required after closing.
Paying all cash can drain the savings you need for living expenses, healthcare, and emergencies. The HECM for Purchase lets you put down a portion of the price and finance the rest, keeping the rest of your money working for you, with no monthly mortgage payment. You right-size your home and your finances at the same time, preserving liquidity for the parts of retirement that matter most.
Yes, that's one of its most common uses. Many borrowers use the HECM for Purchase to move to a single-level home, relocate to a better climate, or buy closer to children and grandchildren. Because there's no monthly mortgage payment and you keep more of your cash, it makes buying the right home for this stage of life possible without stretching your budget.
No monthly mortgage payment is required. As with any HECM, you remain responsible for property taxes, homeowner's insurance, HOA dues if applicable, and maintenance. The loan balance grows as interest accrues and becomes due when you sell, permanently move out, or pass away. The home must remain your primary residence.
Eligible properties include single-family homes, FHA-approved condominiums (or units that meet Single Unit Approval), townhomes, and certain manufactured homes that meet FHA standards. The home must be your primary residence and meet FHA minimum property requirements, and you must occupy it within 60 days of closing. Vacation homes and investment properties do not qualify.
Yes. As with any HECM, you must complete an independent counseling session with a HUD-approved counselor before the loan can proceed. Because a purchase is time-sensitive, it's wise to schedule counseling early so it doesn't delay your closing.
The HECM for Purchase combines your down payment and the reverse mortgage into a single closing on the new home, there's no separate second transaction. You bring your down payment (commonly from the sale of your previous home), the reverse mortgage covers the remainder, and you take ownership with no monthly mortgage payment. Coordinating the sale of your current home with the purchase is part of the planning we do together.
The HECM for Purchase is subject to the same FHA HECM lending limit as a standard HECM: $1,249,125 for 2026. For higher-priced homes, the available reverse mortgage proceeds are calculated against this ceiling, which affects your required down payment. For purchases well above the limit, a proprietary product may be worth evaluating alongside the H4P.
The standard HECM for the home you already own. No monthly payment, non-recourse, and a line of credit that grows over time. Age 62+.
Learn about the HECM →Keep your low-rate first mortgage and still access equity. No monthly payment. Second lien. Age 55+. Up to $4M. Finance of America.
Learn about the HomeSafe Second →Interest-only payments for the life of the loan, no payment shock. Revolving line of credit. Age 62+. Longbridge Financial.
Learn about the HELOC for Seniors →See all the senior home equity products side-by-side across payment, age, equity, risk, and process.
See the full comparison →A no-cost conversation will show you exactly how much down payment you'd need, what home price range fits, and how the HECM for Purchase compares to paying cash or taking a conventional mortgage. No pressure, just the numbers for your situation.
Disclaimer: The HECM for Purchase is an FHA-insured product administered by HUD and is subject to program guidelines, loan limits, rates, and eligibility requirements that are subject to change without notice. Down payment amounts are illustrative and depend on the age of the youngest borrower, current interest rates, and the purchase price; all figures on this page are for educational purposes and do not represent a specific loan offer. The 2026 HECM lending limit of $1,249,125 applies to case numbers assigned on or after January 1, 2026. The home must be occupied as the borrower's primary residence within 60 days of closing. This page is for educational purposes only and does not constitute financial advice or a commitment to lend. Interest accrues on the loan balance over time, reducing home equity. Borrowers must maintain the property as their primary residence and keep current on property taxes, insurance, and upkeep; failure to comply may result in the loan becoming due. David Rider, NMLS #200787. Senior Resources Mortgage operates through NEXA Lending. Equal Housing Lender.