Use our HECM for Purchase (H4P) calculator to instantly get an estimate of your required one-time down payment (which can be applied from proceeds from the sale of your current home) and see how much HECM for Purchase funds you might be eligible for on a property value of your choosing.
See What You May Qualify ForTHE FIGURE AND GRAPHS ABOVE ARE INTENDED AS AN ESTIMATE ONLY, BASED ON THE HOME VALUE, MORTGAGE BALANCE, AND BORROWER AGE YOU HAVE PROVIDED.
YOUR ACTUAL LOAN AMOUNT MAY DIFFER BASED ON MARKET CONDITIONS AND APPLICABLE FEES IN YOUR AREA.
For this example, INITIAL RATE has been set at 6.875% . Rates are subject to changing market conditions. The “Total Proceeds” amount you may be eligible for is the sum of your “Mortgage Payoff” and “Available Proceeds” and does NOT INCLUDE CLOSING COSTS, FEES, or MORTGAGE INSURANCE PREMIUMS (MIP).
This is not a commitment to lend nor a loan approval. Following the closing of the home purchase, no further principal or interest payments will be required as long as one borrower occupies the home as their primary residence and adheres to all HUD guidelines of loan. Borrower must remain current on property taxes, homeowner’s insurance (and homeowner association dues, if applicable), and home must be maintained.
See What You May Qualify ForHow an H4P Can Help You
Historically, there have only been two ways to buy a new home: in all cash or with a mortgage that requires monthly principal and interest payments.
Now there’s a third way: Pay using a Home Equity Conversion Mortgage for Purchase (H4P) loan, which is just for homebuyers aged 62+. You can buy a new home by putting as little as 30% to 70%* of the purchase price down from your own funds — the remainder is funded by the H4P loan.
While an H4P is a mortgage, the borrower is not required to make monthly mortgage payments. That’s right, the borrower can defer repayment of the loan balance so long as they live in the home and pay the property-related taxes, insurance, and upkeep expenses.
So, it feels a lot like an all-cash payment, except you get to keep more of your retirement assets (e.g., keep more of the proceeds from the sale of your current home) to use as you wish, compared to paying in all cash.
In short, an H4P loan offers homebuyers the best of both worlds.
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*Source: https://www.cbsnews.com/news/best-reverse-mortgage-companies-2023/