Reviewed by Dan Frio, NMLS #246527, 38 years in mortgages · October 15, 2026
Many people want to move in retirement. Maybe the house is too big. Maybe the stairs are too much. Maybe the grandchildren live across the country.
A HECM for Purchase lets you buy your next home with a reverse mortgage. You move in, and there is no required monthly mortgage payment.
A HECM for Purchase is an FHA-insured reverse mortgage used to buy a new primary residence. It lets buyers 62 and older purchase a home and have no required monthly mortgage payment.
You make a larger down payment, and the reverse mortgage covers the rest of the price. You close on the purchase and the loan at the same time.
The buyer makes a larger down payment than with a regular mortgage. It is roughly 45 to 60 percent of the price. The exact amount depends on the age of the youngest borrower and on interest rates. Older buyers usually need a smaller down payment.
The down payment can come from your savings or from the sale of your current home.
These are round numbers for example only. Ann sells her old house and buys a $400,000 home near her daughter. She puts down about half the price from her sale. The reverse mortgage covers the rest. She has no required monthly mortgage payment and keeps the rest of her sale money in savings.
A HECM for Purchase is a good fit for people who want to downsize to a smaller, easier home. It also works well for people moving closer to family.
It can let you buy a home that fits your next chapter without taking on a new monthly mortgage payment. That can leave more of your savings for living, travel, or care.
There is no required monthly mortgage payment, but you are still the homeowner. You keep paying property taxes, homeowners insurance, and upkeep, just like you do today.
You may make voluntary payments any time with no penalty if you want to slow the balance growth. The loan is repaid when you sell, move out permanently, or pass away. If the home is sold for more than the balance, the extra goes to you or your estate.
A HECM for Purchase has the same protections as any HECM. Your name is on the deed. The loan is non-recourse, so you and your heirs never owe more than the home is worth. And you can live there for life while you keep up the property charges.
Learn more about why you do not lose your home.
It is an FHA-insured reverse mortgage that lets buyers 62 and older buy a new primary residence with no required monthly mortgage payment.
Roughly 45 to 60 percent of the price, depending on the age of the youngest borrower and interest rates.
Yes. The new home must be your primary residence.
The same counseling, FHA appraisal, and property-charge rules apply. You still pay property taxes, insurance, and upkeep.