HECM for Purchase Calculator — How Much Down Do You Need?

A HECM for Purchase lets buyers 62+ buy a home with a one-time down payment of roughly 40%–60% of the purchase price — and no required monthly principal & interest payment for as long as you live there. The reverse mortgage funds the rest. Enter a purchase price and age below for an instant estimate — no contact information required.

By Michele Albohn, Certified Reverse Mortgage Specialist (CREV) · NMLS #1989021 · Licensed in Tennessee + 11 states · Updated for 2026 FHA limits

Your Scenario

Both spouses' ages matter — HUD uses the youngest. Older buyers need a smaller down payment.
The price of the home you're considering. A ballpark is fine for exploring.
Not sure? Leave the default — Michele will quote your exact rate on a call.
If you're selling a home, enter your estimated net proceeds — we'll show what's left over after the purchase.

Your Estimate

$0estimated cash required at closing (down payment + costs)
You bringReverse mortgage covers
50%
50%
Reverse mortgage provides–
FHA insurance (2% upfront MIP)–
Origination + closing costs (est.)–
Monthly principal & interest payment$0 required
Run My Exact Scenario →
Free 15-minute call with a Certified Reverse Mortgage Specialist. Great for buyers and their agents.
CREV — Certified Reverse Mortgage Specialist
NMLS #1989021 — Michele Albohn
265+ lending partners compared
12 states licensed, based in East Tennessee

How a HECM for Purchase works

Instead of paying all cash or taking a traditional mortgage with monthly payments, a HECM for Purchase splits the price into two parts: your one-time investment (down payment plus closing costs) and the reverse mortgage, which covers the remainder. HUD sets the reverse mortgage amount using the youngest borrower's age and the expected interest rate — this calculator uses HUD's published principal limit factors and the 2026 FHA lending limit of $1,249,125. You must live in the home as your primary residence and stay current on taxes, insurance, and upkeep, but no monthly principal and interest payment is ever required.

Why buyers (and their real estate agents) use it

  • Right-sizing without draining savings: sell the old home, put part of the proceeds down, keep the rest invested.
  • Roughly double the buying power versus paying all cash with the same money.
  • No monthly mortgage payment frees up retirement cash flow for living, travel, and care.
  • For agents: H4P can revive transactions where a senior buyer's payment qualification falls short — and it's a listing tool for 55+ communities.

Frequently asked questions

What is a HECM for Purchase?

An FHA-insured reverse mortgage used to buy a home. Buyers 62+ make one larger down payment — typically 40%–60% of the price — and the loan covers the rest, with no required monthly principal and interest payment for as long as they live in the home.

How much down payment do I need?

Typically 40%–60% of the purchase price plus closing costs, depending on the youngest borrower's age and current rates. Older buyers need less down. Most buyers fund it with proceeds from selling their previous home.

Do I make monthly mortgage payments?

No principal and interest payment is required. You must keep up property taxes, homeowners insurance, HOA dues, and maintenance, and occupy the home as your primary residence.

Can I use it to move closer to family?

Yes — it's one of the most common uses. Sell, right-size near the grandkids, keep a cushion in savings, and skip the monthly mortgage payment.

What homes qualify?

Single-family homes, FHA-approved condos, townhomes, 2–4 unit properties (you occupy one unit), and many manufactured homes meeting FHA standards. You must move in within 60 days of closing.

Schedule a Free HECM for Purchase Consultation →

Estimates are for educational purposes only and are not a loan offer, approval, or commitment to lend. Actual required investment, rates, and costs vary with HUD expected rates, program selection, appraisal, and underwriting. Seller concessions are limited on HECM for Purchase transactions. HUD-approved counseling is required. Borrowers must maintain the property and stay current on property taxes and homeowners insurance. Michele Albohn · In Good Hands Mortgage, powered by Coast2Coast Mortgage · 865-346-6280 · All loans subject to approval. Equal Housing Lender. NMLS #1989021.