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For Home Buyers

You can buy a home that has everything you want…except a monthly mortgage payment.

An FHA-insured Home Equity Conversion Mortgage for Purchase (H4P) allows you to spend more of your retirement on what you want.  With a H4P, you can purchase a home by combining a one-time investment of funds with loan proceeds from a HECM to complete the transaction. The home you are purchasing secures the loan.  Some benefits to you:

  • Purchase a home that better fits your lifestyle need without the added financial burden.
  • Leverage your purchasing power and acquire the dream home that you thought seemed out of reach.
  • Retain your retirement funds for other more important lifestyle or unexpected future needs.

Unlike a traditional mortgage, there are no monthly mortgage payments, which helps boost your cash flow. You own the home as long as you live in it. The loan only comes due when you leave or sell the home, or if you fail to meet your responsibilities—which include maintaining the property, purchasing homeowners’ insurance, and paying your property taxes.


How much do you need for a down payment?

The matrix below demonstrates the increased home purchasing power gained by Americans (62-and-older) who use a H4P.  To use the matrix, match your age (on top of the chart) with the desired home purchase price (on the left side). The number where the age and purchase price intersect is the approximate amount of down payment you will need at closing. The actual amount will vary based on the current interest rate.



Some informative articles on H4P:

Kiplingers: Buying a Home with a Reverse Mortgage

Forbes: Can You Use A Reverse Mortgage To Purchase A New Home?

WSJ: A Reverse Mortgage to Buy a Home? Here's How