Reverse Mortgage for Purchase: Buy Your Next Home With No Monthly Mortgage Payment

How it works

A HECM for Purchase is a Home Equity Conversion Mortgage — the FHA-insured reverse mortgage — used to buy a home instead of refinancing one. You make a one-time down payment, the reverse mortgage covers the rest of the price, and you move in with no required monthly principal and interest payment.

It's popular with people who are downsizing, moving closer to family, or relocating to a different climate and don't want to pay cash for the whole home or take on a new monthly mortgage payment. See the program details on our reverse mortgage for purchase page.

Who qualifies

• The youngest borrower must be at least 62.
• The home must become your primary residence, generally within 60 days of closing.
• Eligible homes include single-family homes, FHA-approved condominiums and some 2–4 unit homes where you live in one unit.
• You must complete counseling with a HUD-approved counselor before applying.
• The lender reviews your income, credit and property charges to confirm you can keep paying taxes, insurance and dues.

How much you put down

The down payment is larger than on a traditional mortgage. The amount depends mainly on the age of the youngest borrower, current interest rates and the home's price — older borrowers and lower rates generally mean a smaller down payment. It usually comes from the sale of your current home or from savings; it can't be borrowed.

Because the inputs change with rates, we calculate it for your exact age, price and the rate environment on the day you ask rather than publishing a one-size table.

Limits and costs (2026)

• Lending limit: for 2026, the maximum home value used in the HECM calculation is $1,249,125 nationwide. For more expensive homes, some lenders offer private (proprietary) reverse mortgages.
• FHA mortgage insurance: an upfront premium of 2% of the home's value (up to the limit) plus an annual premium of 0.5% of the loan balance.
• Other costs: an origination fee, third-party closing costs and interest, which are typically added to the loan balance.

What you're still responsible for

You keep title to the home. To keep the loan in good standing, you must live in the home as your primary residence, pay property taxes, homeowners insurance and any HOA dues on time, and maintain the property. If you don't, the loan can become due — and that can lead to foreclosure.

The loan balance grows over time because interest and mortgage insurance are added to it. The loan is repaid when the last borrower sells, moves out permanently or passes away. A HECM is a non-recourse loan: you or your heirs never owe more than the home is worth when it's sold to repay the loan.

Is it right for you?

It can be a strong fit if you want to buy without draining your savings or adding a monthly payment. It's a weaker fit if you plan to move again within a few years (the upfront costs are significant) or want to leave the home free and clear to heirs. Talk it through with your family and the HUD counselor, and compare it against buying with cash or a traditional mortgage.

Common questions