Home/ Calculators/ HECM for Purchase
H4P Calculator · Free · CRMP Verified · 2026

HECM for Purchase Calculator —
Buy a new home. No monthly payment.

Enter your age, target purchase price, and expected rate. See exactly how much of a down payment you need — and how much the reverse mortgage covers. No monthly mortgage payment, ever.

2026 HUD PLF tables FHA limit $1,249,125 CRMP-verified No login required
Advertisement
[AdSense 728×90]
Your H4P estimate
2026 HUD PLF tables
Your age (youngest borrower) 68
Minimum age 62. If two borrowers, use the younger age.
Target purchase price $550,000
The price of the home you want to buy. Capped at $1,249,125 for HECM portion.
Expected interest rate 6.25%
5.0% 5.5% 6.25% est. 7.0% 8.0%
Ask your originator for today's expected rate. Lower rates = larger HECM contribution.
Required down payment
—
—
HECM contribution
—
Covered by the reverse mortgage
Monthly mortgage payment
$0
No payment required — ever
PLF used
—
—
Down payment %
—
Of purchase price
Purchase price breakdown
Your down payment HECM contribution
Want exact numbers for a specific property? Renee can calculate your exact H4P figures in 20 minutes — including current rates and closing costs.
Book call →
Estimates only. Results use HUD PLF tables and do not constitute a loan offer. Actual principal limit depends on full appraisal, current expected rate, and HUD guidelines. Closing costs not included in this estimate. ARM rate disclosure below.
How it works

Buy a new home with no monthly mortgage payment

A HECM for Purchase (H4P) combines two transactions into one: you buy a new home using a one-time down payment and a federally-insured reverse mortgage. The reverse mortgage covers the rest of the purchase price — and you never make a monthly mortgage payment as long as you live there.

The down payment comes from the sale of your current home, savings, or any other eligible source. What's left from your home sale proceeds stays in your pocket — to invest, spend, or simply keep as a financial cushion.

This is not a last resort. For the right buyer, it's a strategic move: right-size your home, move closer to family, reduce maintenance, improve your location — and keep more of your equity working for you in retirement.

Real-world scenario
Meet Barbara — age 72, selling in Carlsbad, buying in Solana Beach
Current home sale (net)
$875,000
After agent, closing costs
Target purchase price
$575,000
Single-story, lower maintenance
Required down payment
$342,125
At 6.25% expected rate, age 72
HECM covers
$232,875
No monthly payment on this
Proceeds Barbara keeps
$532,875
$875K sale − $342K down payment
Monthly mortgage payment
$0
For life of occupancy
Barbara bought a better home in a better location, kept $532,875 from her home sale, and has no mortgage payment for the rest of her life. If she'd paid cash, she'd have spent $575,000 of her sale proceeds and have nothing left to invest.
The real question

Why not just pay cash?

It's a fair question — and most retirees ask it. If you have the cash, why use a reverse mortgage?

The math most people miss
When you pay cash for a $575,000 home, $575,000 of your retirement assets stops working for you. Your home doesn't pay dividends, doesn't grow at a market rate, and can't be spent without selling or borrowing. With H4P, you keep $532,875 liquid — invested, accessible, and compounding — while still owning the home outright (subject to the HECM lien).
Scenario Pay cash HECM for Purchase
Out of pocket $575,000 (full price) $342,125 (down payment only)
Remaining cash to invest $300,000 $532,875
Monthly mortgage payment $0 $0
Home equity ownership Full (no lien) Subject to HECM lien
Non-recourse protection N/A Yes — FHA insured
Heirs can keep home Yes Yes, by repaying HECM
Advertisement
[AdSense in-article]
For Real Estate Professionals
Help your senior buyers do more
Your buyers aged 62+ have an option that most agents — and most clients — don't know well. A HECM for Purchase can expand their budget, eliminate their monthly mortgage payment, and make a more comfortable home financially possible. I work directly with Realtors to pre-qualify H4P buyers, explain the process at listing appointments, and help you close transactions you might otherwise lose. There is no cost to you, and the buyer's HECM closes concurrently with the purchase transaction — no second escrow.
Schedule a 20-minute H4P briefing →
Eligible properties

What homes qualify for H4P?

The home you're purchasing must meet FHA standards and be your primary residence. Eligible property types include single-family homes, FHA-approved condominiums, townhomes, and 2–4 unit properties (buyer must occupy one unit).

Manufactured homes may qualify if they meet HUD standards and were built after June 15, 1976. Vacation homes, investment properties, and co-ops do not qualify. New construction homes can qualify, but the certificate of occupancy must be issued before closing.

If you're purchasing a condominium, the complex must be on FHA's approved list — this is worth checking early in the process. Renee can verify FHA condo approval status for any property you're considering.

Common questions

HECM for Purchase: FAQ

What is a HECM for Purchase (H4P)?
A HECM for Purchase lets homeowners 62+ use a reverse mortgage to buy a new primary residence. You make a one-time down payment; the HECM covers the rest. There is no required monthly mortgage payment for as long as you live in the home and meet the loan terms (taxes, insurance, maintenance).
How much down payment do I need?
Your required down payment equals the purchase price minus your HECM principal limit. The principal limit depends on your age, the home value, and the current expected interest rate. Generally, borrowers contribute 50–65% as down payment. Older borrowers and lower expected rates both reduce the required down payment. Use the calculator above to estimate your specific numbers.
Can I use my home sale proceeds as the down payment?
Yes — this is the most common scenario. You sell your current home, bring part of the proceeds as the H4P down payment, and keep the rest. The two transactions typically close concurrently. Many borrowers find they can buy a better home while keeping significantly more cash than they expected.
What types of homes qualify?
Eligible properties include single-family homes, FHA-approved condominiums, townhomes, and 2–4 unit properties (you must occupy one unit). Manufactured homes may qualify if they meet HUD standards. Vacation homes, investment properties, and co-ops do not qualify. The home must be your primary residence.
Is there a home value limit?
The FHA maximum claim amount for HECM loans in 2026 is $1,249,125. If you purchase a home above this price, your HECM principal limit is still calculated on $1,249,125 — you must bring the additional amount as part of your down payment. For homes above $1.5–2M, a jumbo proprietary reverse mortgage may be more appropriate.
ARM Disclosure — Required by FHA
HECM for Purchase loans are typically originated as adjustable-rate mortgages (ARMs). The initial interest rate is based on the current index (e.g., 1-year Constant Maturity Treasury) plus a lender margin, and may adjust annually based on market conditions. Interest accrues on the outstanding loan balance and is added to the loan balance over time rather than collected as monthly payments. The total amount owed grows as interest accrues. Rates are subject to annual and lifetime caps. This calculator uses the expected interest rate as a fixed proxy — actual loan costs will vary. Consult with a licensed HECM originator for current rate information.
Related calculators
Calculator
Reverse Mortgage Calculator →
Estimate principal limit on your current home.
Calculator
LOC Growth Calculator →
Model how your line of credit grows over time.
Guide
Reverse Mortgage vs. HELOC →
Side-by-side comparison of both options.
Calculator
Jumbo Reverse Mortgage →
Homes above $1.25M — proprietary products.
Renee Konstantine, CRMP
Renee Konstantine, CRMP
Associate Broker · C2 Financial Corporation · NMLS #1360025 · Licensed CA & WA
About Renee →
This page is for educational purposes only. Results are estimates and do not constitute a loan commitment or financial advice. HECM reverse mortgages are federally insured by FHA/HUD. All loans subject to appraisal, underwriting, borrower eligibility, and HUD guidelines. Renee Konstantine, CRMP, NMLS #1360025, C2 Financial Corporation, licensed in CA and WA.