A reverse mortgage purchase allows eligible homebuyers to purchase a primary residence using a combination of their own funds and a reverse mortgage. Unlike a traditional mortgage, there is no required monthly principal and interest payment as long as the borrower continues to meet loan obligations.

Yes. Eligible borrowers may be able to purchase a home using a reverse mortgage and a required down payment from their own funds. The reverse mortgage finances a portion of the purchase price.

The FHA-insured Home Equity Conversion Mortgage (HECM) for Purchase program generally requires borrowers to be at least 62 years old.

Some proprietary reverse mortgage programs may be available to borrowers as young as 55, depending on state availability and lender guidelines.

The required down payment varies based on factors such as:

-Age

-Home value

-Interest rates

-Loan program

-Property type

Generally, reverse mortgage purchase borrowers contribute a significant portion of the home's purchase price.

In some cases, yes.

For example, a homeowner who nets $650,000 from the sale of their current home may be able to purchase a home valued above $650,000 by using a reverse mortgage purchase program.

Eligibility and loan amounts vary by borrower and program.

No monthly principal and interest payments are required as long as you:

-Live in the home as your primary residence

-Maintain the property

-Pay property taxes

-Pay homeowners insurance

-Meet any other loan obligations

Borrowers remain responsible for:

-Property taxes

-Homeowners insurance

-HOA dues, if applicable

-Property maintenance and upkeep

The loan typically becomes due when:

-The home is sold

-The borrower permanently moves out

-The last borrower passes away

The home can then be sold to repay the loan balance.

Yes.

Heirs generally have options, including:

-Paying off the loan balance and keeping the home

-Refinancing into a new mortgage

-Selling the home and retaining any remaining equity

Specific options depend on the loan program and circumstances at the time.

Yes.

The borrower remains on title and retains ownership of the property, subject to the terms of the mortgage.

Eligible property types may include:

-Single-family homes

-Certain condominiums

-Townhomes

-Some manufactured homes

Property eligibility varies by loan program.

No.

Reverse mortgage purchase programs are intended for primary residences only.

Reverse mortgages are generally non-recourse loans.

This means neither the borrower nor their heirs typically owe more than the value of the home when the loan becomes due, provided loan obligations have been met.

Program terms vary.

Yes.

Many reverse mortgage borrowers are retired.

Lenders will still evaluate financial capacity to ensure the borrower can continue paying taxes, insurance, and other property-related expenses.

Possibly.

Unlike traditional mortgages, reverse mortgage qualification focuses less on debt-to-income ratios and more on the borrower's ability to meet ongoing property obligations.

That depends on your goals.

Some homeowners prefer to:

-Eliminate debt completely by paying cash

-Preserve liquidity and investment assets

-Purchase a higher-value home

-Avoid a required monthly mortgage payment

The right strategy depends on your financial situation, retirement objectives, and long-term plans.

In some situations, homeowners choose to preserve a portion of their proceeds for:

-Emergency reserves

-Investment accounts

-Travel

-Healthcare planning

-Retirement flexibility

A reverse mortgage purchase may allow a buyer to preserve liquidity while still purchasing a replacement home.

Common reasons include:

-Downsizing or rightsizing

-Relocating closer to family

-Purchasing a single-story home

-Preserving retirement assets

-Reducing required monthly expenses

-Improving cash flow flexibility

-Avoiding traditional mortgage qualification challenges

The best approach is to compare multiple strategies side by side, including:

-Paying cash

-Obtaining a traditional mortgage

-Using a reverse mortgage purchase

A personalized analysis can help determine which option best aligns with your retirement goals, housing needs, and financial priorities.