In short
A reverse mortgage for purchase, widely known as HECM for Purchase, lets eligible buyers, typically 62 or older, buy a new primary residence by combining a down payment with a reverse mortgage in one closing, with no required monthly mortgage payment afterward.
Reviewed by Ron Pippin, NMLS #218333 · Last updated October 21, 2026
Can I use a reverse mortgage to buy a home?
Yes, if you're eligible. A reverse mortgage for purchase, widely known as HECM for Purchase, lets buyers who are typically 62 or older make a down payment and finance the rest of the home with a reverse mortgage in a single closing. No monthly mortgage payment is required as long as you meet the loan's terms, but the loan balance grows over time. The home must be your primary residence, and you must keep up with property taxes, insurance and maintenance. HUD-approved counseling is required before you apply. I'll show you the down payment you'd likely need, the costs and how it compares with your other options.
Key takeaways
Ready to downsize, move closer to family or find a home that's easier to live in? A reverse mortgage for purchase, often called HECM for Purchase, lets eligible buyers, typically 62 or older, combine a down payment with a reverse mortgage to buy their next home in one transaction. There's no required monthly mortgage payment, but there are real costs and responsibilities. I'll explain all of it in plain English and help you decide if it fits.
Using a Reverse Mortgage to Buy Your Next Home in Ogden, UT
Maybe the stairs are getting old. Maybe you want to be closer to the grandkids, or you're ready for less yard to mow. Whatever the reason, buying your next home in retirement raises a fair question: do you want a monthly mortgage payment again?
A reverse mortgage for purchase, widely known as HECM for Purchase, may let you buy your next home with a reverse mortgage and no required monthly mortgage payment. It isn't the right move for everyone, but it's worth understanding before you decide.
How It Works
With a traditional purchase, you bring a down payment and take on a mortgage you pay every month. With a reverse mortgage for purchase, the structure changes:
- You make a down payment. Usually a sizable one, often from the sale of your current home or from savings. The required amount depends on your age, the home's value and the program.
- The reverse mortgage covers the rest. One transaction, one closing. You don't buy first and then take out a reverse mortgage later.
- No required monthly mortgage payment. You can choose to make payments, but you aren't required to as long as you meet the loan's terms.
- The balance grows over time. Interest and fees are added to the loan.
- The loan comes due later. Typically when the last borrower sells, moves out for good, or passes away.
The home you buy must become your primary residence.
Why Some Buyers Like It
The appeal is straightforward. You may be able to:
- Buy a home that fits this stage of life.
- Keep more of your savings working for you instead of paying cash for the whole home.
- Avoid adding a monthly mortgage payment to your retirement budget.
What payment will work for you? For a lot of retirees, the answer is "none." This is one way to get there, if the rest of the numbers make sense.
What You Still Have to Do
A reverse mortgage doesn't make the house free to own. You must keep:
- Living in the home as your primary residence.
- Paying property taxes.
- Carrying homeowners insurance (and flood insurance if required).
- Maintaining the home.
If any of those slip, the loan can be called due. So we'll make sure those costs fit your budget with room for life.
Counseling Is Required
Before you apply for a HECM for Purchase, you'll meet with an independent HUD-approved counselor. It's required, and I think it's valuable. You get a neutral explanation of the loan and a chance to ask anything. Family members are welcome, and I encourage it.
Timing and Coordination Matter
A reverse mortgage purchase has more moving parts than a regular one. The property has to meet program standards. Your down payment has to come from acceptable sources. If you're selling your current home, the timing needs to line up. And your agent and the seller should understand how this financing works so there are no closing-day surprises.
I'll help coordinate all of that early. Not a big deal when it's planned. A headache when it isn't.
What I'll Show You
Before you commit, I'll lay out:
- How much you'd likely need for the down payment and closing costs.
- What the loan costs, including mortgage insurance, origination and closing costs.
- How the balance is expected to grow and what that means for your remaining equity.
- How it compares with buying with cash, a traditional mortgage, or keeping your current home.
I'll tell you the difference between each path and why I'd recommend one over another. If a reverse mortgage purchase isn't the right fit, I'll say so.
Learn More
New to reverse mortgages? Start with my overview of reverse mortgages. Already own a home with a mortgage? A reverse mortgage refinance might fit better.
As an independent broker at Strategic Mortgage, I compare options from multiple lenders. Let's run some numbers together. Call or text me when you're ready.
Everything on this page is general information for illustration only. It is not an offer or a commitment to lend, and it does not reflect current interest rates or guaranteed terms. Eligibility, program rules and costs change and depend on your situation. Call or text me for details that fit you.
Quick facts
- Also known as
- HECM for Purchase
- Typical age
- 62 or older
- Down payment
- Required; amount depends on age, home price and program
- Monthly mortgage payment
- Not required while you meet the loan's terms
- Counseling
- HUD-approved counseling required
- Occupancy
- Must be your primary residence
Is this loan right for you?
Who it's for
- Buyers typically 62 or older who are downsizing, relocating or moving closer to family
- Retirees who want to buy without adding a monthly mortgage payment
- Buyers with a sizable down payment from savings or the sale of a current home
- People who plan to live in the new home as their primary residence
Who it may not fit
- Buyers who plan to move again in the near future
- Anyone buying a second home or investment property
- Buyers who would struggle to keep paying property taxes, insurance and upkeep
Pros and cons
Pros
- Buy your next home with no required monthly mortgage payment
- One transaction instead of buying first and refinancing later
- May keep more of your savings available instead of paying all cash
- Lets you choose a home that fits this stage of life
Trade-offs to weigh
- Requires a sizable down payment
- The loan balance grows over time, reducing remaining equity
- Upfront and ongoing costs can be significant
- More coordination is needed with the property, the seller and your agent
Frequently asked questions
How much do I need for the down payment?
It depends on your age, the home's price and the program, and it's usually a sizable amount. Many buyers use proceeds from selling their current home. I'll estimate it for your scenario so you know what to plan for.
Will I have a monthly mortgage payment?
No monthly mortgage payment is required as long as you meet the loan's terms. You can choose to make payments if you want to. You'll still pay property taxes, homeowners insurance and upkeep.
Can I buy first and get a reverse mortgage later instead?
You could, but that usually means two transactions and two sets of closing costs. A reverse mortgage for purchase combines the purchase and the reverse mortgage into one closing. I'll tell you the difference for your situation.
Do I need to sell my current home first?
Not always, but your down payment has to come from acceptable sources, and many buyers use sale proceeds. We'll line up the timing so the sale and purchase work together.
Is counseling required for a reverse mortgage purchase?
Yes. You'll meet with an independent HUD-approved counselor before applying for a HECM for Purchase. Family members are welcome to join.
Does the seller or my agent need to do anything different?
The property has to meet program standards, and everyone should understand how the financing works. I'll help coordinate with your agent early so the process goes smoothly.
Related loan programs
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Last updated October 21, 2026 · Reviewed by Ron Pippin, NMLS #218333. This page is educational and not a commitment to lend; program details change — ask for current figures.