Retirement
HECM for Purchase: Buy a Home With a Reverse Mortgage
Right-size into a home that fits your retirement — with no required monthly mortgage payment.
Most people think of a reverse mortgage as something you do to the home you already own. But you can also buy a home with one. A HECM for Purchase lets a buyer 62 or older purchase a new primary residence and finance it with a reverse mortgage — in a single transaction, with one set of closing costs.
Why retirees use it
- Downsize or right-size into a home that fits this stage of life — single-story, lower maintenance, closer to family.
- Keep more of your savings. You contribute a portion of the purchase price; the reverse mortgage covers the rest, and there is no required monthly mortgage payment.
- Buy without a traditional mortgage payment hanging over a fixed income.
- One closing, rather than buying with cash and then taking a reverse mortgage separately.
Pro tip
The amount you need to bring depends on your age and the home’s price — older borrowers can typically finance a larger share. If you are planning a move in retirement, run this option before you assume you must pay all cash or take on a monthly payment.
Best fit: homeowners 62+ who are moving in retirement and want to preserve savings while avoiding a monthly mortgage payment on the new home.
Common questions
Can I really buy a home and have no monthly mortgage payment?
Yes. With a HECM for Purchase you contribute a portion of the price and finance the rest with the reverse mortgage. You still pay property taxes, insurance and upkeep, but there is no required monthly mortgage payment.
How much do I have to put down?
It depends mainly on your age and the home’s price — older borrowers generally need to contribute a smaller share. We can give you a clear figure for the home you have in mind.