HECM for Purchase Calculator
See the down payment you'd need to buy a new home with a reverse mortgage — no monthly mortgage payment. For homebuyers 62 and older, also known as Reverse for Purchase or H4P.
Nate Jones · NMLS #304056 · New American Funding
From Nate · 28 sec
Buying at 62+? Hit play.
Quick context from Nate on buying a home with a reverse mortgage before you fill out the form.
HECM for Purchase (H4P), also called Reverse for Purchase, lets homebuyers 62 or older buy a new primary residence using a reverse mortgage. You make a one-time down payment — typically about 45–60% of the purchase price depending on age and rates — and the reverse mortgage covers the rest with no required monthly mortgage payment. The down payment usually comes from selling your current home. It's commonly used to right-size into a single-story or aging-in-place friendly home while keeping more cash in savings. Nate Jones (NMLS #304056) handles HECM for Purchase through New American Funding — free estimate, no credit pull.
The Home You Want to Buy
The price of the home you're buying
Must be 62 or older for HECM for Purchase
Reverse rates typically run 6.5-8.5%
With HECM for Purchase you make a one-time down payment, the reverse mortgage covers the rest, and you have no monthly mortgage payment — you still pay property taxes, insurance, HOA, and upkeep.
What You'd Need
Estimated Down Payment Needed
$310,000
About 62% of the purchase price — the rest is covered by the reverse mortgage.
Reverse Mortgage Proceeds Applied
$210,000
Covers this much of the purchase — no monthly payment on it
Cash You Keep vs. Paying All-Cash
$190,000
Stays in your retirement savings instead of going into the house
Monthly Mortgage Payment
$0
No required monthly mortgage payment on the new home
Why Buy With a Reverse Mortgage?
Right-Size Your Home
Move into a single-story, aging-in-place friendly, or closer-to-family home — even one that costs more than your current home is worth.
Keep More Cash
Put down roughly half and keep $190,000 in savings instead of tying it all up in the house.
No Monthly Payment
One down payment and you're done — no monthly mortgage payment for as long as the home is your primary residence.
These are estimates based on simplified HECM for Purchase guidelines. Your exact required down payment depends on current interest rates, the youngest buyer's age, the appraised value, and actual closing costs. Nate will run your exact numbers — free, no credit pull.
How HECM for Purchase Works
HECM for Purchase combines buying a home and setting up a reverse mortgage into one transaction and one closing. Here's the flow:
Pick the home you want to buy and get the purchase price
Make a one-time down payment — usually from the sale of your current home
The reverse mortgage covers the rest of the purchase price
Move in with no monthly mortgage payment — you only pay taxes, insurance, HOA, and upkeep
Example: Right-Sizing at 72
A 72-year-old sells a $300,000 home and wants to buy a $400,000 single-story home — without a monthly mortgage payment and while keeping cash in savings.
| Pay All Cash | HECM for Purchase | |
|---|---|---|
| New home price | $400,000 | $400,000 |
| Down payment from buyer | $400,000 | ~$216,000 |
| Reverse mortgage covers | $0 | ~$184,000 |
| Cash kept in savings | $0 | ~$184,000 |
| Monthly mortgage payment | $0 | $0 |
Illustrative estimate. Actual figures depend on age, rates, and closing costs — Nate runs your exact numbers.
Related Calculators & Guides
HECM for Purchase FAQ
Common Questions
How much down payment do I need?
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Can I buy a more expensive home than I'm selling?
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