Yes — through HECM for Purchase. Eligible borrowers 62 and older can buy a primary residence by combining a significant down payment with reverse mortgage proceeds. There are no required monthly principal and interest payments while you live in the home, though taxes, insurance, and maintenance still apply.
The FHA HECM for Purchase program lets eligible seniors buy a new primary residence in a single transaction. Instead of getting a reverse mortgage on a home you already own, you apply reverse proceeds toward the purchase price at closing — combined with a down payment from your savings or the sale of your prior home.
This path suits buyers who are downsizing, relocating closer to family, or moving into a more accessible home — and who want to preserve cash flow by avoiding required monthly principal and interest payments. The youngest borrower must be at least 62, and the property must meet FHA eligibility standards.
Purchase HECMs differ from traditional forward mortgages: you need a larger down payment upfront, but you will not make monthly P&I payments while you occupy the home. HUD-approved counseling, a financial assessment, and mortgage insurance premiums apply. Ryan and Steve can outline typical down payment ranges for your scenario.
How seniors typically use HECM for Purchase to buy their next home.
Sell a larger home, use proceeds as the down payment on a smaller property, and finance the remainder with a purchase HECM — preserving cash for retirement without monthly P&I on the new mortgage.
Move to a new area closer to family or better climate. Purchase HECM combines your down payment with reverse proceeds in one closing on the new primary residence.
Buy a single-level or ADA-friendly home without taking on a traditional mortgage payment. Down payment comes from savings or prior home equity.
Forward mortgages require ongoing P&I payments and income qualification for the full payment. Purchase HECMs trade a larger down payment for no required monthly P&I — but balances grow over time and property charges remain your responsibility.
Typical path from shopping to closing on a HECM for Purchase.
Step 1
Shop for a primary residence that meets FHA property standards — typically 1–4 units, no new construction without completion, and passes appraisal requirements.
Step 2
Attend a HUD-approved reverse mortgage counseling session before application. The counselor explains program costs, obligations, and alternatives.
Step 3
Lender reviews credit, income, and assets to confirm you can meet ongoing property charges — taxes, insurance, and maintenance — for the life of the loan.
Step 4
Bring your down payment to closing. Reverse proceeds cover the remainder of the purchase price. You move in as owner with no required monthly P&I while you occupy the home.
Related guides to help you understand reverse mortgages and next steps.
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Yes — through the HECM for Purchase program. Eligible borrowers age 62 or older can combine a significant down payment with reverse mortgage proceeds to buy a new primary residence with no required monthly principal and interest payments while they live in the home.
Down payment requirements depend on the borrower's age, expected interest rate, home price, and program limits. Buyers typically need a substantial down payment — often roughly 40–60% of the purchase price — because reverse proceeds cover the remainder, not the full price.
No. HECM for Purchase — like all HECMs — requires the property to be your primary residence. Second homes, vacation properties, and investment properties do not qualify.
No. Approval depends on age, property type, financial assessment, counseling, and lender guidelines. This page is educational — not a commitment to lend or a guarantee of specific terms or proceeds.
Ryan & Steve can explain HECM for Purchase down payments and eligibility — not a commitment to lend; subject to credit and property approval.