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Reverse Mortgage

With $152,273 in cash you can buy a $152,273 home… Or, a $300,000 home and never make a mortgage payment!


The HECM for Purchase is a Federal Housing Administration (FHA) insured home loan that allows seniors to use the equity from the sale of a previous residence to buy their next primary home in one transaction. Regardless of how long they live in the home or what happens to their home’s value, they only make one, initial investment (down payment) towards the purchase.


  • Mortgage Insurance Premium (MIP) insures the amount owed on the loan can never be more than the value of the home at time of sale
  • Independent HUD counseling is required prior to loan application
  • Independent HUD counseling is required prior to loan application
  • Lender may only look to the value of the home for repayment; no other assets may be attached if the loan balance grows beyond the mortgaged home value (non-recourse loan)


  • Youngest titleholder must be 62 years or older
  • Purchased home must be a primary residence, occupied within 60 days of loan closing
  • Property must be a single-family home, 2-4 unit dwelling, or a FHA approved condominium
  • The difference between the purchase price of the new home and the HECM loan proceeds must be paid in cash from qualifying sources such as the sale of prior residence, homebuyer’s other assets or savings
  • Borrower must complete a HUD approved counseling session


The amount of money an individual may receive from a HECM for Purchase loan depends on the ago of the youngest titleholder, current interest rates, and the lesser of the appraised value, the purchase price or the FHA lending limit.

The funds available to the borrower may be restricted for the first 12 months after the loan closing, due to HECM requirements.

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