How a Huntington Beach Couple Bought Their Retirement Home With a HECM for Purchase
Used a HECM for Purchase to buy a retirement-friendly home while keeping more savings in reserve.
After selling their longtime two-story home, a retired Huntington Beach couple set out to buy a single-level property closer to the coast and easier to navigate as they aged. They had a healthy amount of cash from the sale but did not want to pour all of it into the new house. Their goal was to right-size into a retirement-friendly home while keeping a comfortable reserve for travel, healthcare, and the unexpected.
The challenge
Paying all cash for the new home would tie up a large share of their nest egg in a single illiquid asset, leaving them less flexibility for the years ahead. A traditional mortgage, on the other hand, would add a monthly payment they had hoped to leave behind in retirement. They wanted a way to buy the home they wanted without choosing between their savings and their cash flow.
The approach
Once the mandatory counseling was done, they used a HECM for Purchase, which combines buying a home and a reverse mortgage in one transaction. They made a required down payment from the sale proceeds, and the reverse mortgage covered the rest — with no required monthly mortgage payment.
The outcome
They moved into a retirement-friendly home while preserving a significant portion of their savings for other needs.
Key results
- Bought a retirement-friendly home
- Down payment funded from prior sale proceeds
- No required monthly mortgage payment
- Preserved more savings in reserve
Frequently asked questions
What is a HECM for Purchase?
A HECM for Purchase lets buyers 62+ purchase a home and obtain a reverse mortgage in a single transaction. You make a required down payment (often from the sale of a prior home), and the reverse mortgage covers the balance with no required monthly payment.
How much down payment is needed for a HECM for Purchase?
The required down payment depends on the youngest buyer's age, interest rates, and the home price — often roughly 45% to 65% of the purchase price. A specialist can estimate your figure based on current factors.
What types of homes can I buy with a HECM for Purchase?
Most primary residences qualify, including single-family homes, FHA-approved condominiums, and some manufactured homes that meet FHA standards. The home must become your primary residence, typically within 60 days of closing. A specialist can confirm whether a specific property is eligible.