Reverse Mortgage Resources for Realtors

Help your senior clients buy a home with no monthly mortgage payment — or make sense of their existing equity before listing. Aaron explains the options clearly.

Connect with Aaron Run an Estimate

HECM for Purchase

Help clients buy without a monthly payment.

HECM for Purchase (H4P) is a federal program that allows homebuyers age 62 and older to purchase a home using a reverse mortgage — combining the down payment from their home sale proceeds with a HECM loan, and making no monthly mortgage payments on the new home.

This opens doors for downsizing clients who want to free up cash, move closer to family, or right-size into a more manageable property — without the burden of a monthly mortgage payment.

“HECM for Purchase is one of the most underutilized tools in senior real estate. Once clients understand it, many say they wish they had known sooner.”

— Aaron Johnson, Sr. Mortgage Advisor

62+

Minimum Age

Monthly Payments

FHA

Insured

🏡 Purchase a New Home

Clients use proceeds from their current home sale plus a HECM loan to buy — no monthly mortgage payment on the new home.

💰 Preserve Cash & Investments

Because they’re not making monthly payments, clients can keep more of their portfolio working for them in retirement.

📍 Right-Size Without the Burden

Clients can move into a home that fits their retirement needs — including accessibility upgrades — without committing to a mortgage payment.

How HECM for Purchase Works

A quick example.

Sample HECM for Purchase Scenario

For illustration only — not a loan offer

Buyer Age72

New Home Purchase Price$600,000

HECM Loan Contribution~$250,000 (est.)

Down Payment Required from Buyer~$350,000

Source of Down PaymentProceeds from selling prior home

Monthly Mortgage Payment$0 required

Remaining Cash from Home SaleAvailable for retirement use

Estimates only. Actual amounts depend on borrower age, property value, interest rates, and lender underwriting. Contact Aaron for a specific analysis.

Equity Before Listing

Help clients understand their equity position.

Before your client lists their home, Aaron can help them understand what a reverse mortgage on their current home might look like — whether as a source of funds for their next purchase or as an alternative to listing at all.

Some homeowners decide a reverse mortgage on their current home is a better path than selling. Understanding both options helps your clients make more informed decisions.

Connect with Aaron

Common Questions from Realtors

Can a HECM for Purchase be used with any property type?+

The property must meet FHA eligibility requirements. This generally includes single-family homes, FHA-approved condominiums, and manufactured homes meeting HUD standards. Townhomes and 2–4 unit properties may also qualify if the borrower occupies one unit.

How long does a HECM for Purchase take to close?+

Typically 45–60 days, similar to a traditional mortgage. The timeline includes the required HUD counseling session, appraisal, underwriting, and closing. Aaron coordinates each step and communicates with all parties.

Does the buyer need to pay closing costs out of pocket?+

In many cases, most closing costs are rolled into the loan. The primary out-of-pocket requirement is the down payment (the buyer’s contribution above the HECM loan amount). Aaron will outline all costs clearly upfront.