HECM for Purchase • NMLS #303217
Buy Your Next Florida Home With No Monthly Mortgage Payment
HECM for Purchase — put roughly half down, finance the rest with an FHA-insured reverse mortgage, and never make a monthly principal & interest payment while you live there.
Most people know a reverse mortgage as a way to pull equity out of a home you already own. The HECM for Purchase (H4P) flips that: it's the same FHA-insured loan, used to buy your next primary residence. You bring a large down payment — typically somewhere around half — and the reverse mortgage covers the rest, with no monthly principal-and-interest payment for as long as you live in the home.
The one-sentence version: sell your current home (or use savings), put roughly half down on the new one, and keep the other half of your money — instead of paying all cash or taking on a monthly payment at 65+.
How a HECM for Purchase Works
It's one transaction with one closing. Here's the typical shape of it in Florida:
- You pick the home — single-family, FHA-approved condo, or a HUD-compliant manufactured home. It must become your primary residence within 60 days of closing.
- You bring the required investment — usually from the sale of your previous home. The exact amount depends on the youngest borrower's age and current rates: older buyers bring less.
- The HECM funds the balance — and from day one there is no required monthly mortgage payment. You still pay property taxes, homeowner's insurance, and any HOA dues.
- The loan comes due only when the last borrower permanently leaves the home. It's non-recourse — you or your heirs never owe more than the home is worth.
Down Payment: The Age Advantage
The required investment is driven mostly by age — the FHA tables give older borrowers more. These are ballpark ranges to set expectations; your quote depends on rates the week you lock:
| Age of youngest borrower | Typical required investment |
|---|---|
| 62 – 69 | Roughly 55–65% of the purchase price |
| 70 – 79 | Roughly 50–60% |
| 80+ | Roughly 45–55% |
Compare that with paying 100% cash — the route many Florida retirees default to. With an H4P, the same buyer keeps roughly half their money invested or in the bank, in exchange for FHA insurance premiums built into the loan.
Who This Fits
- Downsizers selling a larger home and buying into a community like The Villages — keep half the sale proceeds instead of burying them all in the new house.
- Relocators moving to Florida (or across it) to be near family — we lend in Ocala, Gainesville, Belleview, and statewide.
- Right-sizers who want a newer, safer, single-story home without taking a mortgage payment into retirement.
Honest note: H4P is not the cheapest way to buy a house — FHA mortgage insurance is real money. It's the right tool when preserving cash and eliminating the payment matter more than minimizing loan cost. If a conventional loan or paying cash serves you better, I'll tell you that directly.
Eligibility Checklist
- At least one borrower is 62 or older (younger spouses have protections as non-borrowing spouses).
- The home becomes your primary residence within 60 days of closing.
- Eligible property: single-family, FHA-approved condo, 2–4 units (you occupy one), or a HUD-compliant manufactured home — see our manufactured home financing page for the details there.
- Completion of an independent HUD-approved counseling session — required for every reverse mortgage, and a good thing.
- A financial assessment showing you can sustain taxes, insurance, and upkeep.
HECM for Purchase vs. the Alternatives
| All cash | Conventional loan | HECM for Purchase | |
|---|---|---|---|
| Cash kept in pocket | None — fully tied up | Most | About half |
| Monthly P&I payment | None | Yes, for the loan term | None, for life in the home |
| Income qualification | None | Full documentation | Lighter — residual income check |
| Best for | Simplicity | Strong income, younger buyers | 62+, preserving cash, no payment |
Want the deeper mechanics of how the loan itself works — payout math, what happens with heirs, counseling? Read our guide to how a reverse mortgage works in Florida, or start at the Florida reverse mortgage hub.
HECM for Purchase FAQ
How much down payment do I need for a HECM for Purchase?
Typically somewhere around half of the purchase price — the exact amount depends on the youngest borrower's age and current rates. Older buyers put down less. The rest is covered by the reverse mortgage, and you make no monthly principal-and-interest payment.
Do I make monthly mortgage payments on a HECM for Purchase?
No monthly principal or interest payments are required for as long as you live in the home as your primary residence. You remain responsible for property taxes, homeowner's insurance, HOA dues, and upkeep.
Who qualifies for a HECM for Purchase in Florida?
At least one borrower must be 62 or older, the home must become your primary residence within 60 days of closing, and you'll complete an independent HUD-approved counseling session. The lender also checks that you can sustain taxes and insurance.
What kinds of homes can I buy with a HECM for Purchase?
Single-family homes, FHA-approved condos, 2-4 unit properties where you live in one unit, and HUD-compliant manufactured homes. New construction is eligible once the certificate of occupancy is issued.
What happens to the home when I pass away?
The loan is non-recourse. Your heirs can keep the home by paying off the balance (often by refinancing), sell it and keep any remaining equity, or walk away — they will never owe more than the home is worth.
Ready When You Are
Get Your Refinance Pre-Approval
Two minutes, no SSN, no credit pull — tell me what you're looking to buy and I'll personally run your HECM for Purchase numbers, including your required down payment by age.
Ready for a Full Application?