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How a Huntington Beach Couple Bought Their Retirement Home With a HECM for Purchase
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.
Names and details have been changed for privacy. These are illustrative examples of common scenarios. Individual results vary; not a guarantee of any loan outcome.
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 Strategy
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.
What This Made Possible
- 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.
Reverse Mortgages in Huntington Beach
Huntington Beach is a Coastal Orange County community in Orange County, with established neighborhoods like Huntington Harbour, Downtown Huntington Beach, Sunset Beach. Many longtime homeowners here have built significant equity as values have risen over the years — equity a reverse mortgage can help convert into retirement cash flow without selling the home or taking on a monthly mortgage payment.
Reverse Mortgages in Huntington BeachMiguel A. Vazquez (NMLS #401212) is a California DFPI Licensed Mortgage Broker operating as Reverse Mortgage Plus / Home Central Financial. This website provides educational information only and does not constitute financial, tax, or legal advice. Loan estimates and illustrations are for informational purposes only. Actual terms depend on borrower qualifications, property value, and market conditions. Not a commitment to lend.
