Quick Answer
A HECM for Purchase (H4P) lets a buyer 62 or older purchase a primary residence using a reverse mortgage. You bring a down payment (typically around 45–70% of the price, depending on your age and rates), the reverse mortgage covers the rest, and there is no monthly mortgage payment for as long as you live in the home and keep up property taxes, insurance, and maintenance. It combines a home purchase and a reverse mortgage into a single closing.
What Is a HECM for Purchase?
A HECM for Purchase is an FHA-insured reverse mortgage used to buy a home rather than to tap equity in a home you already own. It was created by Congress so seniors could relocate or downsize in one transaction instead of buying with cash (or a traditional mortgage) and then doing a separate reverse mortgage afterward. You combine a down payment with reverse mortgage proceeds to complete the purchase, and from day one there is no required monthly mortgage payment.
Why Seniors Use It
Common reasons include moving closer to children or grandchildren, downsizing to a smaller single-story or low-maintenance home, relocating to a community better suited to retirement, or buying a newer home with fewer repairs. Because there is no monthly mortgage payment, buyers can often purchase a home that better fits their needs while keeping more of their cash from the sale of the old home set aside for living expenses, emergencies, or care.
Buying new construction? See the H4P timing rules
How Much Down Payment Do You Need?
The required down payment depends mainly on the age of the youngest borrower and current interest rates — older buyers need less down. As a general range, expect to bring roughly 45% to 70% of the purchase price as a down payment, with the reverse mortgage covering the rest. The down payment must come from acceptable sources such as the proceeds from selling your current home, savings, or the sale of other assets — not from another loan.
See the full down-payment worked example on our HECM for Purchase page
What You Still Pay
A HECM for Purchase removes the monthly principal-and-interest payment, but you remain responsible for property taxes, homeowners insurance, any HOA dues, and upkeep — exactly as you would on any home you own. The home must be your primary residence, meet FHA property standards, and you must complete a HUD-approved counseling session before moving forward, just like any HECM.
See the full HECM for Purchase closing-cost breakdown
Is It Right for You?
H4P tends to fit buyers who want to move and would otherwise either drain their savings to pay all cash or take on a monthly mortgage payment in retirement. It is not a fit if you do not intend to live in the new home as your primary residence, or if the down payment would leave you without an adequate cash cushion. A no-pressure conversation with Miguel can model the numbers for a specific home and price so you can compare H4P against paying cash or financing traditionally.
