What is HECM for Purchase?
A HECM for Purchase lets an eligible older buyer use a reverse mortgage to buy a new primary residence, combining the purchase and the reverse mortgage into one transaction. The buyer brings a down payment from their own funds and the reverse mortgage covers the rest, with no required monthly mortgage payment. It is often used to downsize or relocate closer to family.
Example: A 68-year-old sells their large home, then buys a smaller one with a HECM for Purchase — putting down part of the proceeds and financing the rest with the reverse mortgage, with no monthly payment.