HECM for Purchase
The reverse mortgage purchase program for eligible buyers age 62 and older who want to buy a new principal residence, in Southern Nevada and across the country, without a traditional required monthly mortgage payment.
Last reviewed September 9, 2026
Quick Answer
HECM for Purchase is an FHA-insured reverse mortgage program that allows an eligible buyer age 62 or older to purchase a new principal residence and obtain the HECM in the same transaction. The buyer contributes cash toward the purchase and uses HECM proceeds for the remaining eligible portion. The buyer generally does not make monthly mortgage payments afterward, but must continue paying property taxes, homeowners insurance, HOA charges if applicable, and maintenance costs.
HECM for Purchase Navigation
Start with whichever situation matches yours. Every path connects to real pages on this site; where the original source named a page that exists, that exact page is linked.
I Have Never Heard of This
I Want to Know How to Buy
I'm Planning to Pay Cash
I'm Considering a Normal Mortgage
I'm Moving From California
The companion Reverse Mortgages & HECM hub covers the basics, qualification, costs and what happens after death.
What Is HECM for Purchase?
HECM for Purchase is an FHA-insured reverse mortgage program that allows an eligible buyer age 62 or older to purchase a new principal residence and obtain the HECM in the same transaction. The buyer contributes cash toward the purchase and uses HECM proceeds for the remaining eligible portion. The buyer generally does not make monthly mortgage payments afterward, but must continue paying property taxes, homeowners insurance, HOA charges if applicable, and maintenance costs.
A major resource on this site.
HECM for Purchase deserves dedicated attention, not a buried sub-topic: it has its own hub, navigation placement, and its own buying, cash, mortgage, relocation, downsizing and 55+ community paths, because older buyers often discover only two options: paying cash or taking a traditional mortgage. HECM for Purchase creates a third path.
Why Is HECM for Purchase So Interesting?
Because older buyers often think they have only two choices:
Option A
Pay Cash
All available cash goes into the home, which can leave retirement liquidity thin.
Option B
Get a Traditional Mortgage
A required monthly principal-and-interest payment stretches into retirement.
Option C
HECM for Purchase
Use part of the buyer's available cash plus reverse-mortgage proceeds to purchase the home without a traditional required monthly mortgage payment. That can preserve liquidity.
A Simple Illustration
Hypothetical illustration
Cash available after selling a California property
$700,000
Henderson home price
$600,000
They might assume “I'll just pay $600,000 cash.” But a HECM-for-Purchase lender could evaluate whether the buyer might instead contribute a smaller portion of the $600,000 and finance the eligible remainder through HECM proceeds. That could leave significantly more cash available for investments, retirement reserves, healthcare, travel, emergency fund, family and other financial goals.
This is only an illustration. The required buyer contribution depends on age, interest rate, home value, current principal-limit factors, closing costs and other HECM requirements, and there is no universal “you put 50% down” rule. A licensed HECM lender calculates the actual numbers for your situation.
Does the Buyer Really Not Make Monthly Mortgage Payments?
Under the standard HECM structure, yes: traditional monthly principal-and-interest mortgage payments are not required.
But the buyer absolutely must continue paying property taxes, homeowners insurance, HOA dues, maintenance and other required property charges, and must occupy the home as the principal residence.
Do You Still Own the Home?
Yes. The borrower holds title. The lender has a security interest, similar to other mortgages.
Who Can Use HECM for Purchase?
Generally, eligible buyers age 62+ purchasing a qualifying principal residence. HUD's current handbook describes HECM for Purchase as a transaction allowing the borrower to finance the purchase of an existing one-to-four-unit residence where the borrower will occupy one unit as the principal residence.
What Properties Can Qualify?
Depending on current FHA and HECM eligibility: single-family homes, certain 2-4 unit properties, certain condos, and certain manufactured housing. Not every property qualifies, and specific eligibility must be verified under current program rules.
Do You Need Counseling?
Yes. HUD-approved HECM counseling is required.
Can the Seller Contribute to Closing Costs?
Current FHA guidance permits certain interested-party contributions from sellers, builders, developers, or real estate agents toward allowable HECM-for-Purchase closing costs within current program rules. This is a changing technical area and should be verified at the time of the transaction.
Important: This Is Not “Buying a House for Half Price”
You are not receiving a discount. Part of the home's purchase price is being financed through a reverse mortgage. The debt exists, it accrues, and it eventually must be repaid. HECM for Purchase is a financing tool, not free money.
What Happens to Equity?
The buyer starts with equity because they contribute a meaningful amount of cash. Over time, the loan balance can grow and the property can appreciate or depreciate; remaining equity depends on both.
Why This May Matter So Much in Las Vegas
Greater Las Vegas receives many relocating retirees from higher-cost markets. A buyer selling in California, Washington, Oregon or other high-equity markets may arrive with substantial sale proceeds.
Instead of spending nearly all of those proceeds on the Nevada property, HECM for Purchase may allow the buyer to keep more liquid assets. That is worth discussing with a qualified HECM lender, and it is why searches like “reverse mortgage to buy a home in Las Vegas”, “HECM for Purchase Nevada”, “buy a retirement home with a reverse mortgage” and “sell a California home and move to Las Vegas” point here.
How Lisa Helps
Lisa can make HECM for Purchase part of the home-search strategy. She can search properties in the right price range, coordinate with the HECM lender, evaluate HOA costs, compare homes by total ownership expense, help with seller-contribution negotiations, and coordinate appraisal and closing timing.
Lisa can help you find and negotiate the home. A licensed HECM lender determines eligibility, proceeds, required cash investment, interest rate, and loan terms. HUD-approved reverse mortgage counseling is also required. Lisa is a REALTOR®, not a reverse-mortgage loan originator, financial adviser, attorney, CPA or estate-planning attorney.
Frequently Asked Questions
Can I use a reverse mortgage to purchase instead of refinancing?
Yes. That is exactly what HECM for Purchase is designed for.
Is it only for people who already have a reverse mortgage?
No. HECM for Purchase is for buyers who do not yet own the property and do not already carry a reverse mortgage.
Do I need to own another house first?
No.
Can I use proceeds from selling my old house?
Yes, qualifying sale proceeds can potentially be part of the buyer's required cash investment.
Can Lisa search specifically for homes that fit HECM for Purchase?
Yes. Once the lender provides an actual financing range, Lisa can build the search around it.
AGE 62+ AND PLANNING TO PAY CASH?
If you're 62+ and planning to buy with cash, ask one more question before wiring the entire purchase price: what would HECM for Purchase look like? A qualified HECM lender can walk you through the actual numbers before you commit all of your home-sale equity.
Lisa can help you find and negotiate the home. A licensed HECM lender determines eligibility, proceeds, required cash investment, interest rate, and loan terms. HUD-approved reverse mortgage counseling is also required. Lisa does not give HECM quotes.
HECM-for-Purchase numbers change. Verify the current rules at closing.
Principal-limit factors, interest rates, mortgage insurance, the HECM maximum claim amount, allowable funding sources, seller and interested-party contributions, eligible property types, counseling requirements, financial assessment and due-and-payable rules are set by HUD, FHA, the CFPB and the lender, and they change. For 2026, HUD currently lists a HECM maximum claim amount of $1,249,125, which must be refreshed annually from HUD and is not a permanent cap. There is no universal “you put 50% down” rule for HECM for Purchase. Verify actual eligibility, proceeds, required cash investment, interest rate and loan terms with a licensed HECM lender and HUD-approved counselor at the time of your transaction.
Lisa is a Nevada REALTOR®, not a reverse-mortgage loan originator, financial adviser, attorney, CPA or estate-planning attorney. She handles the property search, offers, negotiation, valuation, seller-contribution questions and closing coordination, and she never gives HECM quotes or eligibility determinations.
Reviewed by
Lisa C Hamilton, REALTOR®, NV License S.168195
Lisa C Hamilton is a Las Vegas Valley REALTOR® affiliated with THE Brokerage, A Real Estate Firm®, helping buyers, sellers, investors, relocating clients and retirees across Clark County and Greater Las Vegas. For HECM for Purchase, she handles the real estate side: property search, offers, negotiation, valuation, HOA and total-ownership-cost comparison, seller-contribution questions and closing coordination. She is not a reverse-mortgage loan originator, financial adviser, attorney, CPA or estate-planning attorney, and she never gives HECM quotes or eligibility determinations.