HECM for Purchase — California
Buy Your Next Home With No Monthly Mortgage Payment
HECM for Purchase lets California homebuyers 62 and older purchase a new primary residence using a reverse mortgage — combining a down payment with HECM proceeds, with no monthly mortgage payment required.
What Is HECM for Purchase?
HECM for Purchase (H4P) is a government-insured program that allows buyers 62+ to purchase a new primary residence using a single transaction — combining a down payment (typically 45–65% of the purchase price) with a reverse mortgage. The result: you own the home outright, with no monthly mortgage payment. The reverse mortgage balance grows over time and is repaid when you sell, move out, or pass away.
How HECM for Purchase Works
Find Your New Home
Identify the home you want to purchase. It must be a primary residence — single-family, 2–4 unit (owner-occupied), FHA-approved condo, or new construction.
Determine Your Down Payment
We calculate the required down payment based on your age, the purchase price, and current interest rates. Older buyers and lower interest rates mean a smaller required down payment.
HUD Counseling
Federal law requires a session with an independent HUD-approved counselor before closing. We provide the approved list and help you schedule.
Single Closing
The purchase and the reverse mortgage close in one transaction. Your down payment plus the HECM proceeds equal the full purchase price.
Move In — No Monthly Payment
You own the home. No monthly mortgage payment is required for as long as you live there and meet the basic loan obligations.
Example: Buying a $700,000 Home at Age 70
| Purchase Price | $700,000 |
| Required Down Payment (est. ~52% at age 70) | $364,000 |
| HECM Proceeds Cover | $336,000 |
| Monthly Mortgage Payment | $0 |
| Remaining Down Payment Source | Sale proceeds, savings, or gift |
Illustrative example only. Down payment percentage varies by age, interest rate, and purchase price. Contact Brooks Mortgage for a personalized analysis.
Why Use HECM for Purchase?
Right-Size Your Home
Move to a home that better fits your retirement lifestyle — closer to family, single-story, lower maintenance — without taking on a monthly mortgage payment.
Preserve Your Savings
Instead of paying all cash for a new home, use HECM proceeds to cover a portion — keeping more of your retirement savings invested and liquid.
Non-Recourse Protection
You and your heirs will never owe more than the home's value at the time of repayment, regardless of how the loan balance grows.
No Income or Credit Score Minimum
H4P qualification is based on age, home value, and a financial assessment — not a minimum credit score or income threshold. Ideal for retirees on Social Security or investment income.
Who Qualifies
- Age 62 or older (all borrowers on title)
- Purchasing a new primary residence (not a refinance)
- Down payment from personal funds, sale of prior home, or gift
- Down payment cannot come from seller concessions or bridge loans
- Must complete HUD-approved counseling
- Must occupy the home as primary residence within 60 days of closing
- Property must meet FHA minimum property standards
HECM for Purchase FAQs
Find Out How Much Down Payment You Need
Tell us the purchase price and your age and we'll calculate your required down payment and available HECM proceeds.
Personalized for you
Get Your Personalized Mortgage Rate
Every borrower is different. Tell us about your scenario and we'll compare programs and rates tailored to you — no obligation.
- Compare multiple loan programs side by side
- Review interest rate, APR, points, and monthly payment
- Speak directly with an experienced mortgage broker
Specialized programs available