Buy Your Next Home Without Monthly Mortgage Payments Using a Reverse Mortgage
You can buy a home with a reverse mortgage with the HECM for Purchase (H4P) for homebuyers aged 62+ — or as young as 55 with proprietary reverse mortgages — to increase your purchasing power and help you find the desired home that best fits your retirement lifestyle, all while keeping more cash in your nest egg.
Buying a new home in retirement doesn’t have to mean tying up all your savings or taking on a monthly mortgage payment once again. There is another option with either a government-insured HECM for Purchase (Home Equity Conversion Mortgage for Purchase) or a Non-FHA Proprietary Reverse Mortgage. You can buy a home with a reverse mortgage to help you further grow your retirement savings and without resetting the clock for another 15 or 30 years of required mortgage payments.
Whether you’re downsizing, relocating closer to family, or upgrading to a home better suited for aging in place, the HECM for Purchase can help you retain financial flexibility and protect retirement savings.
What Is a HECM for Purchase and How Does It Work?
A HECM for Purchase is a special type of reverse mortgage insured by the Federal Housing Administration (FHA). It allows eligible buyers aged 62 and older to purchase a new primary residence using a reverse mortgage — instead of paying all cash or using a traditional mortgage with required monthly mortgage payments.
Here’s how it works:
You make a down payment (typically 40–65% depending on your age and interest rates).
The reverse mortgage covers the rest of the purchase price.
You are not required to make monthly mortgage payments as long as you live in the home as your primary residence, pay property taxes, insurance, and maintain the home.
*Buyers aged 55+ may also qualify for proprietary (non-FHA) reverse mortgage options depending on state and lender availability.
Why Use a Reverse Mortgage to Buy Your Next Home?
Many retirees find themselves house-rich but cash-constrained. Instead of draining retirement accounts or settling for a home that doesn’t meet their needs, HECM for Purchase lets you:
Preserve cash flow for travel, healthcare, or investing.
Avoid monthly principal and interest payments.
Buy a home better suited for aging in place.
Relocate closer to family or a preferred retirement community.
Downsizing with Cash Left Over
Jane and Robert, both 70, sold their large family home for $700,000. Instead of buying a smaller $600,000 home with all cash, they used a HECM for Purchase. With a $360,000 down payment, the reverse mortgage covered the rest. They kept $340,000 in retirement savings and now live payment-free with a greater probability of success that they will not run out of money in their lifetime.
Upgrading Without Monthly Payments
Linda, age 65, lives in a two-story home worth $500,000. She wanted a single-level home in a 55+ community priced at $600,000. Using a reverse mortgage and $390,000 down, she purchased the home and retained over $110,000 in reserves for her retirement plan— with no monthly payments. This allowed her to afford a better suited home in a more desirable community, plus unlock a portion of her housing wealth to put in savings.
“Meeting Rick for the first time, and with knowing very little about reverse mortgages it was such a comforting experience. He was so professional and explained reverse mortgages in a way anyone could understand. Every question that we asked, there was no hesitation what-so-ever. We knew right away that he was very knowledgeable & passionate about helping people understand the entire process.
After I found my perfect home, he was there through ever aspect of the process. He made the entire process a wonderful experience. I would recommend Rick to anyone. I now have the peace of mind going into my retirement from the work force. NO stress financially now.” – Pat J.
Schedule a Free Consultation with Rick Rodriguez
Rick Rodriguez is a nationally recognized reverse mortgage professional with over 20 years of experience. He was the first Certified Reverse Mortgage Professional (CRMP®) in Southern Nevada and has helped countless homeowners purchase a home with a reverse mortgage. Rick works one-on-one with homeowners, their families, and trusted advisors to make sure reverse mortgage solutions are clearly understood and responsibly used.
Learn more how a reverse mortgage works.
Learn more about reverse mortgage safety at NRMLA.
- Using a HECM for Purchase throughout the country
- Serving homeowners in multiple states
- Retirement Mortgage Specialist | CRMP®