Determining Your Down Payment

Using an H4P loan option to help finance your new home purchase could be a great choice for you.

Determining how much cash you will need to purchase your new home will depend upon several factors:

  1. The age of the youngest borrower (at least one borrower must be at least 62 years of age).
  2. The interest rate of the Reverse Mortgage loan.
  3. The lower of the FHA-appraised value, FHA lending limit, or purchase price of the property.

These factors determine the amount of a Reverse Mortgage loan that you qualify for. 

Other considerations include:

  • Any portion of money you bring to closing cannot be borrowed – it must be money you have through the sale of a prior home or asset, money in your savings, or retirement funds.
  • Seller concession are not permitted.
    (Sellers can pay for Home Warranties and Borrower’s Title Insurance as acceptable or customary by State).
  • All properties must meet FHA guidelines for Reverse Mortgage lending.


H4P could be a tremendous financial tool to help you realize the achievement of your next step into a brighter retirement future. 



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



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