Using a reverse mortgage to buy your next home​

Using a reverse mortgage is one-way borrowers nearing retirement could help ease the cost of buying their next home.   

The most popular type of reverse mortgage for buying a new home is a Home Equity Conversion Mortgage (HECM) for Purchase. HECM for Purchase lets borrowers over a certain age buy a new primary residence without having to make monthly mortgage payments. 

If you are looking to use a reverse mortgage to buy your next home, start your HECM application today. 

How does a reverse mortgage for purchase work?

You can buy a new home using a special reverse mortgage called a HECM for Purchase. When using a HECM for Purchase to buy a new home, borrowers age 62 and older can avoid making monthly mortgage payments but may need to make a sizeable down payment. 

To use one of these reverse mortgage options to purchase a property, you and your home will need to meet certain requirements. 

Eligibility requirements for a HECM for Purchase

Some of the requirements necessary for purchasing a property through a HECM are: 

• Borrowers need to be at least 62 by the time of purchase.
• The property must be a primary residence.
• HECM is insured by the Federal housing Administration.
• Property taxes, homeowners insurance and HOA fees must still be paid by borrowers.
• HUD-approved counseling for borrowers before closing.

Benefits of buying a home with a reverse mortgage

​Some of the major benefits of buying a home with a reverse mortgage that borrowers could see are: 

• No monthly mortgage payments*
• Your home is purchased and set up in one transaction
• Finance a portion of your home purchase
• Borrowers and heirs will never owe more than the home’s value

Step-by-step process to secure a HECM for Purchase

If you are looking to secure a HECM for Purchase, these are the steps you should follow: 

Go to HUD-approved counseling

Before you get a HECM, you will need to meet with a HUD-approved counselor who will review the program, costs and alternatives with you. This counseling typically takes around an hour and after completion you will receive a certificate valid for 180 days. 

Get pre-qualified

Getting pre-qualified will help you see how much you may be able to borrow through a HECM. Lenders will look at your age, interest rates and the FHA lending limit to give you an estimate of how much you could borrow with a reverse mortgage and what your down payment would look like. 

As of 2026, the FHA lending limit reaches up to $1,249,125 depending on your area. 

Start shopping

To simplify the shopping process, make sure you work with a real estate agent familiar with HECM properties. Remember that the home must be your primary residence and meet the FHA property standards. 

Start your HECM for Purchase application

After you have attended HUD-approved counseling, seen how much you could borrow and found a home, you will be prepared to start a HECM for Purchase application with a trusted lender. 

_{*As with any mortgage, you must meet your loan obligations, keeping current with property taxes, insurance and keeping your home in good condition. (or good shape or maintenance).}