Reverse Mortgage Purchase Down Payment Calculator

Utilize our HECM for Purchase (H4P) calculator to quickly determine how much of the proceeds from the sale of your current home will be needed as your required one-time down payment and to determine your potential eligibility for HECM for Purchase funds based on the value of the property you choose.

Based on the home value, mortgage balance, and borrower age you have provided, the figure and graphs above are only intended to serve as an estimate.

Based on local market conditions and applicable fees, YOUR ACTUAL LOAN AMOUNT COULD VARY.

For this example, INITIAL RATE has been set at 6% . Rates are subject to changing market conditions. The total of your “Mortgage Payoff” and “Available Proceeds” is the “Total Proceeds” amount you might be eligible for; it does NOT, however, include closing costs, fees, or mortgage insurance premiums (MIP).

This is neither a promise to lend nor an endorsement of a loan. No additional principal or interest payments will be necessary after the home purchase is completed, provided that one borrower continues to live there as their primary residence and complies with all HUD loan guidelines. The borrower is required to keep up with their homeowner’s insurance, property taxes, and, if necessary, homeowner association dues. They also have to maintain their home.

How an H4P Can Help You

The only two options in the past for purchasing a new home were paying cash up front or taking out a mortgage that required regular principal and interest payments.

There is now a third option: Pay with a Home Equity Conversion Mortgage for Purchase (H4P) loan, which is only available to homebuyers who are 62 years or older. You can put as little as 40% to 60%* of the purchase price down from your own money when buying a new house; the H4P loan will cover the remaining amount.

Although an H4P is a mortgage, the borrower is not obligated to make mortgage payments on a monthly basis. That’s right, as long as the borrower continues to occupy the property and pays the property’s associated taxes, insurance, and maintenance costs, they may postpone repayment of the loan balance.

Therefore, it resembles an all-cash payment in many ways, but you get to keep more of your retirement assets (e.g. g. , as opposed to paying in full cash, keep a larger portion of the proceeds from the sale of your current residence for your personal use.

Shortly put, a H4P loan gives prospective homeowners the best of both worlds.

Find Out More About Our Loans, Like How Much You May Qualify For.

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Reverse Mortgage Purchase Down Payment Calculator


How much do you have to put down on a reverse mortgage?

Typically, a HECM for Purchase loan requires about 50% of the home’s purchase price to be paid in cash. Regardless of how long the borrower intends to live there, this down payment for the house must be made.

How is the amount of a reverse mortgage calculated?

Age of the youngest homeowner or non-borrowing spouse determines how much a person can receive from a reverse mortgage. The value of the home. The expected interest rate.

How does a HECM for purchase work?

With a HECM for purchase, the borrower combines a reverse mortgage with the proceeds from the sale of their current home or other assets to pay for a new home. Similar to a conventional HECM, the borrower can reside in the new home without being obligated to make mortgage payments on a regular basis.

What are three major requirements to qualify for a reverse mortgage?

Aside from age, other reverse mortgage requirements include:
  • Your residence must serve as your principal place of residence, i.e., where you spend the majority of the year.
  • Either you must be a home owner in full or have a low mortgage balance.
  • You are not allowed to have any federal debt, such as unpaid federal taxes or unpaid federal student loans.