Quick Answer
Yes. With a HECM for Purchase, buyers 62 and older can buy a new main home and take out a reverse mortgage in one closing. You put in the difference between what the loan provides and the price plus costs. You make no monthly mortgage payments and must move in within 60 days.
How does a HECM for Purchase work?
HUD designed the program so you can buy a new main home and get a reverse mortgage in a single transaction, instead of buying first and borrowing later. At closing, the title moves to you and the HECM's liens must be the only liens on the home. After that, it works like any HECM: no monthly mortgage payments, and the loan is repaid when you no longer live there.
Who can use it?
Every borrower must be 62 or older. A spouse who isn't on the loan can be younger. You still meet with a HUD-approved counselor, as with any HECM, and the lender can take your application before or after counseling. You must keep paying property taxes and homeowners insurance and keep the home in good shape.
How much do you have to put in?
HUD calls it your monetary investment: the gap between what the HECM provides and the price, plus any fees you don't add to the loan, minus your earnest money deposit. How much the HECM provides depends mostly on the youngest borrower's age and interest rates. The home value it counts is the lowest of the appraised value, the price and FHA's limit, $1,249,125 for case numbers assigned on or after Jan. 1, 2026. You can put in more than the minimum to keep some of the loan for later.
Can the seller help with costs?
Yes. Sellers, real estate agents and builders can pay up to 6 percent of the sales price toward your origination fee, other closing costs, prepaid items and the upfront mortgage insurance premium. The lender can't. Costs a seller normally pays where you live, like the agents' commission, don't count toward the 6 percent.
Which homes are eligible?
A one- to four-unit home where you live in one unit, a condo in a project on FHA's list, or a manufactured home. It can be an existing home or new construction. For new construction, the lender must get the right inspections or a certificate of occupancy before closing.
When do you have to move in?
Within 60 days of closing, for every borrower and any eligible spouse who isn't on the loan. It must be your main home, and you can have only one at a time. If you already have a HECM on your current home, it must be paid off before the new one is insured.
Ready to look at a move? Start with our HECM for Purchase page.
Common Questions
Can the money I put in come from selling my current home?
Yes. HUD allows cash on hand and money from selling or cashing in things you own. It doesn't allow sweat equity, trade equity, rent credit or premium pricing.
Can I buy a co-op with a HECM for Purchase?
No. HUD's list of eligible homes is one- to four-unit homes, condos in projects on FHA's list and manufactured homes.
Sources
This guide is general information, not advice about your situation.