HECM for Purchase is the FHA program that lets eligible borrowers 62 and older buy a primary residence with reverse mortgage proceeds plus a down payment — in one closing. HUD counseling, financial assessment, and mortgage insurance premiums apply.
HECM for Purchase combines two funding sources at closing: your down payment (from savings, sale of a prior home, or other eligible sources) and reverse mortgage proceeds that cover the rest of the purchase price up to FHA lending limits and program calculations based on age and expected interest rate.
The program is FHA-insured, which means upfront and annual mortgage insurance premiums (MIP) apply — similar to other HECMs. Borrowers must complete HUD-approved counseling before applying and pass a financial assessment confirming they can meet ongoing property charges: taxes, insurance, and maintenance.
The home must be your primary residence — not a second home or investment property. One closing handles both the purchase and the reverse mortgage lien. Ryan and Steve can walk through how proceeds, down payment, and closing costs typically break down for purchase scenarios.
Key elements of the HECM for Purchase process and how they differ from a standard HECM refinance.
Typical steps in a HECM for Purchase transaction.
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Related guides to help you understand reverse mortgages and next steps.
Yes — age 62+, down payment, and no monthly P&I basics.
What drives proceeds — age, value, rates, and liens.
Counseling, financial assessment, and eligibility.
Ask Ryan & Steve about HECM for Purchase details.
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Ryan & Steve can explain down payment, counseling, and closing steps — not a commitment to lend; subject to credit and property approval.