Home Equity Conversion Mortgage
The Right Loan to Help You Find the Perfect Home for Your Retirement Years
Thinking About a New Home in Retirement? You May Have More Options Than You Think.
If you're 62 or older, you may be considering a move to a home that better suits your retirement lifestyle—perhaps one that’s closer to family, easier to maintain, more accessible as you age, or even one with ocean views and the beauty you’ve always dreamed of.
At the same time, you might be wondering if the home you want is financially out of reach—or if tapping too much of your savings is worth the trade-off. Before you settle for less, explore a powerful alternative: the HECM for Purchase loan.
What is a HECM for Purchase (H4P)?
A HECM for Purchase is a reverse mortgage loan insured by the Federal Housing Administration (FHA), created specifically for homebuyers age 62 and older. It allows you to purchase a new primary residence that better fits your needs—without the burden of monthly mortgage payments.* It’s a flexible financing tool that can preserve your savings and help you enjoy the retirement lifestyle you’ve earned.
Benefits:
An H4P can potentially help you to:
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Increase your purchasing power to buy the home you really want
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Free up cash flow—you will not be obligated to make monthly mortgage payments. You still must maintain the home and pay taxes and homeowners insurance.
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Extend the life of your productive retirement assets*
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Qualify for a mortgage in retirement. There are minimal income and credit requirements.
How an H4P Works:
Down Payment Flexibility
With a HECM for Purchase loan, you can combine a down payment—typically from the sale of your current home or other personal funds—with loan proceeds to purchase your next home. The required down payment generally ranges from 40% to 60% of the home’s purchase price, depending on several factors: the age of the youngest borrower, current interest rates, and the home’s appraised value. This structure allows you to buy a home that fits your retirement lifestyle without draining your savings.
Repayment on Your Terms
General Requirements:
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You must be 62 years old or older
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You must meet minimal credit and property requirements
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You must receive reverse mortgage counseling from a HUD approved counseling agency
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You must not be delinquent on any federal debt
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Home must be a primary residence
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Property must be a single-family home, a 2- to 4-unit dwelling, or FHA-approved condo
One of the key benefits of a HECM for Purchase is repayment flexibility. You can choose to make monthly mortgage payments—or opt not to make any at all. As long as you continue to live in the home and meet the loan requirements (including paying property taxes, homeowners insurance, and maintaining the property), no loan repayment is due until the last borrower moves out or passes away. When the loan becomes due, you or your estate will have up to 12 months to repay the balance, typically by selling the home.
Increase your purchasing power
This information is provided as a guideline and does not reflect the final outcome for any particular homebuyer or property. The actual reverse mortgage available funds are based on current interest rates, current charges associated with loan, borrower date of birth (or non-borrowing spouse, if applicable), the property sales price and standard closing cost. Interest rates and loan fees are subject to change without notice. Following the closing of the home purchase, no further principal or interest payments will be required as long as one borrower occupies the home as their primary residence and adheres to all HUD guidelines of loan. Borrower must remain current on property taxes, homeowner’s insurance (and homeowner association dues, if applicable), and home must be maintained.
Upsizing
James and Mary, who are 62 and 59, want to move to a newly constructed home to retire. They want to keep the same size home they currently have, but home values are more than double in the new community compared to where they live currently. A Realtor® recommended to them that with a reverse mortgage for home purchase, they could buy a house similar to the one that they currently live in.
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CLIENTS COULD SELL THEIR HOUSE FOR $391,400 AND PURCHASE A NEWLY
CONSTRUCTED HOME FOR $600,000.
House and story are for illustration purposes only. House may not be available for purchase.
DID YOU KNOW? You may be able to close on an H4P loan from Fairway in as little as 15 days*
*15-day close is not available in all states and requires receiving a non-contingent appraisal within ten days from the appraiser.
Downsizing
Cindy, who is 62, is selling her current home that is owned free and clear to move closer to her grandchildren. She would like to downsize when she moves and be able to set up an annuity for her grandchildren to help pay for college*. The community she would like to move to is more expensive than her current one. A reverse mortgage can allow her to purchase a home in the new community and be able to have money left over from the sale of her current house.
CLIENT COULD DOWNSIZE HER $400,000 HOME, PURCHASE A $375,000 HOUSE AND HAVE $170,000 TO SPEND ON AN ANNUITY.
House and story are for illustration purposes only. House may not be available for purchase.
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Copyright©2025 Fairway Independent Mortgage Corporation (“Fairway”) NMLS#2289. 4750 S. Biltmore Lane, Madison, WI 53718, 1-866-912-4800. All rights reserved. Fairway is not affiliated with any government agencies. These materials are not from HUD or FHA and were not approved by HUD or a government agency. Reverse mortgage borrowers are required to obtain an eligibility certificate by receiving counseling sessions with a HUD-approved agency. The youngest borrower must be at least 62 years old. Monthly reverse mortgage advances may affect eligibility for some other programs. This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates, and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply. Equal Housing Opportunity.