Reverse Mortgage · HECM for Purchase

HECM for Purchase

Buy a new primary residence without taking on a monthly mortgage payment. The HECM for Purchase (H4P) combines home sale proceeds with a reverse mortgage to fund your next chapter.

Try the reverse mortgage calculator Call 888-501-8539

Can you buy a home with a reverse mortgage? Yes — through HECM for Purchase (H4P), the FHA program that lets qualifying homeowners age 62+ purchase a new primary residence using a reverse mortgage for part of the price. Most buyers use proceeds from selling their current home as the down payment. For a deeper walkthrough, see our HECM for Purchase explained guide.

How HECM for Purchase Works

Find Your New Home

Identify the home you want to purchase as your primary residence. Work with a real estate agent experienced with H4P transactions.

Determine Your Down Payment

Your down payment — typically from home sale proceeds, savings, or other assets — covers the difference between the purchase price and the HECM loan amount.

Complete HUD Counseling

All HECM borrowers must complete a session with a HUD-approved housing counselor before the loan closes. This is a federal requirement.

Close and Move In

At closing, the HECM provides the remaining funds. You own the home and have no required monthly mortgage payment while you meet loan obligations.

Buy a Home with a Reverse Mortgage

Buying with a reverse mortgage is different from a conventional purchase loan. The HECM portion does not require monthly principal-and-interest payments while you live in the home as your primary residence and keep up with taxes, insurance, and maintenance. You still need enough cash (or sale proceeds) to cover the down payment gap between the purchase price and the HECM loan amount.

H4P is one way to downsize, move closer to family, or right-size for retirement without restarting a 30-year payment schedule. Compare it with staying put and using a standard HECM loan on your current home, or reviewing reverse mortgage costs and HECM fees before you shop.

Why Consider HECM for Purchase?

No required monthly mortgage payments — preserve retirement cash flow
Move closer to family, downsize, or right-size your home in retirement
Use proceeds from selling your current home as the down payment
Keep more of your liquid savings and retirement assets intact
Own the home — you remain on title just like any other homeowner
FHA-insured program with consumer protections

General Requirements

At least one borrower must be age 62 or older
The purchased home must become your primary residence within 60 days of closing
Down payment comes from your own assets — not borrowed funds
HUD-approved counseling session required before closing
Property must meet FHA minimum property standards

Requirements above are for the HECM for Purchase program. Some proprietary reverse mortgage purchase programs may have different age requirements — ask a licensed loan officer about your options. Down payment requirements and loan amounts vary based on age, home purchase price, current interest rates, and program guidelines. This is not a commitment to lend. Ennkar, Inc. NMLS #976231. Licensed mortgage company in 16 states. Not all products available in all states. View licensing information · NMLS Consumer Access. Federal law requires HUD-approved counseling before a HECM loan closes. Find a HUD-approved counselor.

Frequently Asked Questions

Can I buy a home with a reverse mortgage?

Yes. The HECM for Purchase (H4P) program lets qualifying borrowers age 62 or older buy a new primary residence using a reverse mortgage for part of the purchase price, combined with a down payment from their own assets (often sale proceeds from a prior home). You must occupy the home as your primary residence and complete HUD-approved counseling.

How much down payment do I need for HECM for Purchase?

The down payment equals the purchase price minus the HECM loan amount available for that property and borrower profile. Loan amounts depend on age, purchase price (subject to the FHA lending limit), expected rate, and program rules. Your Loan Estimate shows the numbers for a specific scenario — online guides cannot quote a personalized down payment.

Is HECM for Purchase the same as a traditional purchase mortgage?

No. A traditional purchase mortgage requires monthly principal-and-interest payments. A HECM for Purchase is still a reverse mortgage: there is no required monthly mortgage payment as long as you meet occupancy and property-charge obligations. You still bring a substantial down payment and close with FHA program rules.

These answers are for educational purposes only and do not constitute financial, legal, or tax advice. This is not a commitment to lend. Ennkar, Inc. NMLS #976231. Licensed mortgage company in 16 states. Not all products available in all states. View licensing information · NMLS Consumer Access.

Explore what HECM for Purchase may look like for you

Use our free reverse mortgage calculator for an educational estimate, then talk with a licensed Ennkar loan officer about purchase scenarios.

Try the reverse mortgage calculator Call 888-501-8539

This is not a commitment to lend. Ennkar, Inc. NMLS #976231. Licensed mortgage company in 16 states. Not all products available in all states. View licensing information · NMLS Consumer Access.