Have You Found Your Dream Home, But You're Just a Little Short on Cash? Here’s How a Reverse Mortgage for Purchase Could Help

You’re not alone. Many seniors find themselves in a similar situation: they’ve sold their previous home, they’ve saved wisely, but the perfect next home is just slightly out of reach financially. The good news? There’s a solution that may allow you to buy that home without taking on monthly mortgage payments—while still preserving some of your cash for retirement savings, investments, or simply peace of mind.

It’s called a Reverse Mortgage for Purchase, also known as a HECM for Purchase.

What is a Reverse Mortgage for Purchase?

A Reverse Mortgage for Purchase is a government-insured loan program designed specifically for homebuyers aged 62 or older. Unlike a traditional mortgage, there are no required monthly mortgage payments. Instead, the loan is repaid when the borrower sells the home, moves out, or passes away.

With a Reverse Mortgage for Purchase, you bring a large down payment (usually between 50–65% depending on age and interest rates), and the reverse mortgage covers the remaining balance. This allows you to:

Buy a home you love even if you don’t have enough cash to pay for it in full

Avoid monthly mortgage payments

Keep more cash in your pocket for investments, travel, healthcare, or emergencies

A Simple Example

Let’s say the home you want to buy costs $400,000, but you only have $280,000 available to spend. A Reverse Mortgage for Purchase might allow you to use your $280,000 as the down payment, and the reverse mortgage loan would cover the remaining $120,000—with no monthly payments required.

You now own your dream home, and you didn't have to drain every last dollar from your savings to get there.

Key Benefits

✅ No Monthly Mortgage Payments – You’ll still be responsible for property taxes, insurance, and home maintenance, but you won’t have a traditional mortgage payment.

✅ Preserve Your Savings – Keep more cash for retirement, unexpected expenses, or investments.

✅ Age in Place – Purchase a home that better suits your lifestyle or health needs, closer to family, or in a sunnier climate.

Is It Right for You?

A Reverse Mortgage for Purchase isn’t the right fit for everyone. It depends on your financial goals, how long you plan to live in the home, and how you want to leave assets to your heirs. But if you’re 62 or older, and you’ve found a home you love but are a bit short on cash, this program could offer the flexibility and freedom you’ve been looking for.

Interested in learning more about how a Reverse Mortgage for Purchase could work in your situation?

Let’s talk—I'll walk you through your options and help you understand how much home you could afford without depleting your nest egg.