Reverse Mortgage Purchase

Quick Facts

HECM (Home Equity Conversion Mortgage) loans – also known as Reverse Mortgages – can be an important financial option for seniors, their family members, and financial professionals to consider as part of an overall retirement planning strategy or to help meet cash flow needs.

Over the past 50+ years the Reverse Mortgage has positively grown in popularity and has developed into an intelligent option to increase the financial independence for homeowners 62 years of age or older.

What is a Reverse Mortgage Purchase?

You may be familiar with a traditional reverse mortgage; however, did you know that a reverse mortgage can also be used to buy a home? It’s called a home equity conversion mortgage (HECM) for purchase and is sometimes referred to as a reverse mortgage purchase loan. A HECM for purchase allows seniors age 62 and older to purchase a new principal residence without required monthly mortgage payments. Senior homeowners use the proceeds from a HECM for purchase, plus the equity from the sale of a previous residence, to buy their next primary home. This is completed in a single transaction with one initial investment (down payment).

A typical onetime investment (down payment) will range from 45% to 55% of the purchase price. The down payment is determined by the appraised value or purchase (whichever is less), current interest rates, and age of borrower, and is generally out of proceeds from the sale of the original home when choosing to “right size”. This may result in a substantial preservation of proceeds from the sale, and access to a more suitable home, perhaps thought to be out of reach financially.

If you have questions, or would like more information, please CONTACT US.

Benefits of a Reverse Mortgage Purchase

  • Eliminate your monthly mortgage payments
  • Increase your purchasing power
  • Preserve your cash
  • Use less cash out of pocket – so you can invest back into savings or retirement
  • Build your dream retirement home
  • Purchase a home that will better suit your needs for comfort and physical needs, such as a one-level home with ramps, handrails and wider doorways
  • Relocate into a home with less maintenance
  • Relocate to a warmer climate
  • Pay medical expenses
  • Relocate closer to family and loved ones
  • Use your funds as a line of credit with no payments needed
  • Access all your funds at once, or select payments for a select term of for your life

Interested in a Reverse Mortgage for Refinance? Learn more about them HERE.


Note: Reverse Mortgage clients are responsible for their property taxes, homeowners insurance, and general property maintenance.

We're here to answer all of your Reverse Mortgage questions

A friendly HECM expert is available to answer your questions at (208) 743-1005 or by email at