HECM For Purchase – Home Equity Conversion Mortgage

HECM for Purchase

The Home Equity Conversion Mortgage (HECM) for Purchase program allows home buyers 62 and over to purchase a new home using loan proceeds from the reverse mortgage. The HECM is the only reverse mortgage insured by the U.S. Federal Government and is only available through an FHA-approved lender.

The amount of money you can receive from a HECM for Purchase home loan is dependent on the age of the youngest titleholder. The minimum age limit is 62. As a HECM borrower, you will need to pay the difference between the HECM loan proceeds and the purchase price of the new home plus closing costs. This can be done using proceeds from the sale of a prior residence or other financial assets.

Using the HECM for Purchase program allows you the option to make one initial down payment towards the purchase of your new home and never make a monthly mortgage payment for as long as you own the home as your principal residence. As with any mortgage, you must stay current with property-related taxes, home insurance and maintenance as part of your ongoing loan obligations. This increases your purchase power and preserves your cash through retirement. Repayment of the loan is generally required if you sell the home, move out, pass away or fail to meet the loan obligations.

Another advantage of the HECM for Purchase program is the non-recourse feature, which means you can never owe more than the home is worth when the loan is repaid. The property is the only source of repayment regardless of the loan balance at maturity. This means neither you nor your estate has any personal liability for a deficient loan balance if your home is sold for a loss.

For resources and detailed information about the borrower, property and financial requirements for a HECM loan, visit the U.S. Department of Housing and Urban Development (HUD) website and learn how the HECM program works.

If you are interested in buying a new home with a HECM loan to increase your purchasing power and get the amenities, low-maintenance lifestyle and luxurious home you’ve always dreamed of having in retirement, please visit

We work with local lenders to help home buyers choose financing options that best suit their needs including HECM, FHA/VA or conventional loans. Epcon homes are designed with private courtyards, open floorplans with plenty of natural light, luxurious kitchens and baths, and versatile room arrangements. Interior options and upgrades are also available to help you create a home that truly speaks to your unique vision.