Talk With Me About HECM for Purchase (H4P)

HECM for Purchase (H4P) Financing for Seniors

The Home Equity Conversion Mortgage for Purchase, commonly known as HECM For Purchase is a loan available to homebuyers who are 62 and older. 

This specially designed financial tool can help enable a senior homebuyer to purchase a new primary residence with a smaller portion of their own cash and utilize the funds from a Reverse Mortgage to provide the additional money needed to close on the new home.

So, whether you want to purchase the ‘home of your dreams’, move closer to family, or simply right-size into a home to maintain a more comfortable lifestyle, H4P could be the answer you are seeking.

How H4P Works

Financing a new home with a Reverse Mortgage, allows the new homebuyer to access a portion of the funds needed in buying the home with a Reverse Mortgage loan. You, as a new homebuyer, would receive money from the Reverse Mortgage loan combined with funds of your own – usually from the sale of a previous residence or cash from savings or retirement funds – to close on the new home purchase. All of this is handled in a single transaction.

Typical expenses are still your responsibility as a homeowner. You will need to pay property taxes, homeowners’ insurances and any homeowner’s dues promptly, along with maintaining the condition of your new home.

H4P Repayment

As with any HECM Reverse Mortgage loan, H4P loans have no set repayment schedule. You can pay as much or as little as you want or even decide to make no monthly payments at all, deferring repayment until the point that you no longer use the home as your primary residence.

HECM Reverse Mortgage loans are non-recourse loans. This simply means that should the home be sold when it is no longer being used as your primary residence, any amount due beyond the value of your home will not be the responsibility of you as the borrower, nor that of your estate or heirs. The assurance provided by this loan insures that you are protected. But also, if the home brings more at sale than the amount owed on the Reverse Mortgage loan, that portion is yours, or will go to your estate.


To learn more, contact a Reverse Mortgage Banking Representative today!



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