HECM for Home Purchase Educational Resources

Today’s retiree wants to enjoy the best possible lifestyle without depleting their retirement savings.

Imagine the impact for your client if you could:

  • Help them purchase their RightSized™ home…while at the same time
  • Increasing their cash flow,
  • Decreasing their expenses and
  • Adding new dollars back into their retirement savings

The HECM for Purchase (H4P) is now regarded as one of the most important advancements in utilizing the HECM program.  It has been reviewed by the Wall Street Journal, Forbes, Kiplinger Personal Finance, the Boston Center for Retirement Research, and many others.

It can be a retirement income game changer, and ELITE advisors and real estate professionals must know how to use this powerful tool.


Calculate Your Clients Estimated Downpayment

Go HERE to receive a customized illustration of estimated benefit

Articles and Case Studies

The HECM for Purchase Home Buyer’s Guide

[Download: H4P Home Buyers Guide]

Eligibility Requirements

  • At least one spouse must be 62 years or older
  • The purchased home will be occupied within 60 days of closing
  • The purchased home must be the primary residence
  • The difference between the purchase price of the home and the HECM proceeds will be paid in cash from the sale of an existing home or another source of eligible funds
  • Gift funds may be an acceptable form of down payment, however certain restrictions may apply
  • If the homeowner is using cash, the cash must be seasoned for 60 days
  • There must be proof that the homeowner has “eligible funds” from qualifying sources for the closing. Depending on the source of funds, specific documentation may be required
  • Single family home
  • Multi-family owner occupied homes (up to four units maximum, must meet FHA approval)
  • FHA approved condominiums
  • Cooperatives (must meet FHA approval)
  • Newly constructed principal residences where a Certificate of Occupancy or equivalent has not been issued by the appropriate local authority
  • Manufactured homes (must meet FHA guidelines)
  • Property must meet FHA minimum property requirements
  • Critical health, safety and structural integrity issues must be repaired
  • Repair set-asides are not permitted with the HECM for Purchase
  • The buyer cannot pay for any repairs before they own the home
  • The repairs must be included in the purchase agreement
  • All major home repairs must be completed by the property seller before the loan can close


With a HECM for Purchase loan the usual costs associated with selling and buying a property will apply as well as the fees associated with a reverse mortgage loan.