HECM for Purchase Calculator: Estimate Your Down Payment

Step 1 of 2: New Home Details

Tell us about the home you want to purchase

Purchase Price

$400,000

$100,000 $2,000,000

Age of Youngest Borrower

Step 2 of 2: Current Home Sale

Do you have an existing property you plan to sell?

Current Property Sale Details

Enter the details of the property you plan to sell. We'll calculate your net proceeds after paying off the mortgage and closing costs.

Current Property Value

$300,000

$50,000 $2,000,000

Outstanding Mortgage Balance

$150,000

$0 $300,000

Estimated Net Proceeds

Sale Price: $0

Mortgage Payoff: $0

Agent Commission: $0

Closing Costs: $0

Your HECM for Purchase Results

Based on your information, here's what your home purchase would look like

HECM Loan Amount

The reverse mortgage loan will cover this portion of your purchase price

Down Payment Required

You'll need to bring this amount to closing

Purchase Breakdown

Purchase Price: $0

HECM Loan Amount: $0

Down Payment Required: $0

Down Payment Percentage: 0%

Get a detailed breakdown with personalized recommendations sent directly to your email.

Your Complete Financial Picture

Here's exactly what happens when you sell your current home and purchase your new home with a HECM for Purchase loan. We've broken this down into simple steps so you can see where every dollar goes.

STEP 1

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Selling Your Current Home

First, you'll sell your current home. Here's what you'll receive after all costs are paid:

What Your Home Sells For: $0

Costs Paid at Closing:

Pay Off Your Current Mortgage $0

Real Estate Agent Fees $0

Closing Costs (Title, Escrow, etc.) $0

Cash You'll Receive: This money goes toward your new home $0

Then, you'll use this money to help purchase your new home

STEP 2

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Purchasing Your New Home

Next, you'll purchase your new home using the HECM for Purchase loan combined with your sale proceeds:

Price of Your New Home: $0

How It's Paid For:

HECM Reverse Mortgage Loan No monthly payments required*

Your Down Payment Cash required to complete purchase

Here's Your Bottom Line:

Down Payment Needed: $0

Money From Sale of Current Home: $0

                                            
                                                Additional Cash You Need to Bring:
                                                You'll need to bring this to closing
                                            
                                            $0

What This Means for You

No Monthly Mortgage Payments

With a HECM reverse mortgage, you won't have monthly principal and interest payments on your new home.

Coordinated Timeline

We can coordinate both closings to happen on the same day or within a few days of each other.

You Remain the Owner

You own your new home outright. The HECM is simply a loan that doesn't require monthly payments.

Your Responsibilities

You'll still pay property taxes, homeowners insurance, and maintain your home.

Ready to take the next step? Get your detailed breakdown and expert guidance.

Important Information

*While you don't have monthly mortgage payments, you must still pay property taxes, homeowners insurance, and maintain the home.
The loan becomes due when you permanently move out, sell the home, or pass away.
Your heirs can keep the home by paying off the loan balance or sell it to settle the debt.
These are estimates based on the information provided. Final amounts may vary based on your specific situation and current market rates.

How this estimate works

Use the calculator to explore an illustrative HECM for Purchase estimate for a home you are considering. Review the inputs and assumptions shown with the result.

What to enter

Enter the requested purchase and borrower information, using approximate figures while you compare options.

Understanding the result

The result is an estimate to help you plan the cash needed for the purchase. Final figures depend on verified details and lender review.

Next step

To discuss your estimate, use the “Transaction Summary” request path below the calculator.

Frequently asked questions

What does the HECM for Purchase calculator estimate?

It provides an illustrative estimate of the cash needed for a purchase based on the inputs and assumptions displayed.

Are fees included?

Review the fee assumptions shown in the calculator; final amounts depend on verified transaction details.

Is the result an approval or quote?

No. It is an estimate for planning, not an approval, offer, rate quote, or guarantee.

What is a Reverse Mortgage for Purchase (H4P)?

A Reverse Mortgage for Purchase (H4P) is a loan program that allows seniors 62 and older to buy a new primary residence using a reverse mortgage. It combines funds from the sale of your current home, savings, or other assets with a reverse mortgage to purchase the new property in a single transaction.

How does Reverse Mortgage for Purchase work?

You contribute a down payment toward the purchase of your new home.
The reverse mortgage covers the remainder of the purchase price.
You won’t have monthly mortgage payments as long as you meet the loan terms, including living in the home as your primary residence and maintaining property taxes, insurance, and upkeep.

How is Reverse Mortgage for Purchase different from a traditional reverse mortgage?

A traditional reverse mortgage converts equity in your current home into cash. A Reverse Mortgage for Purchase, on the other hand, helps you buy a new home while eliminating the need for monthly mortgage payments on the home you just purchased.

What are the benefits of a Reverse Mortgage for Purchase?

Downsize or right-size: Move into a home that better fits your needs (e.g., fewer stairs, more accessible features).
Preserve savings: Free up funds for retirement by avoiding monthly mortgage payments.
Stay close to family or amenities: Relocate to a preferred community or region while managing your cash flow.

What are the eligibility requirements for Reverse Mortgage for Purchase?

To qualify, you must:

Be at least 62 years old (both spouses if married).
Purchase a home that will be your primary residence.
Have sufficient funds for the required down payment (typically 35–50% of the purchase price, depending on your age and the loan amount).
Meet all FHA requirements for HECM loans, including property standards.
Complete a HUD-approved counseling session.

How much do I need for a down payment?

The required down payment depends on:

The age of the youngest borrower.
The purchase price of the new home.
Current interest rates. Typically, the down payment is between 35–50% of the home’s purchase price. The Reverse Mortgage for Purchase Calculator above can provide an estimate based on your inputs.

What types of homes are eligible for a Reverse Mortgage for Purchase?

Eligible properties include:

Single-family homes.
Multi-family properties with up to four units (as long as one unit is your primary residence).
FHA-approved condos.
Manufactured homes that meet FHA requirements.

What are the costs associated with Reverse Mortgage for Purchase?

Down payment: Your contribution toward the purchase price.
Mortgage insurance premiums (MIP): Required for FHA-insured HECM loans.
Closing costs: Includes origination fees, appraisals, and title insurance.
Ongoing costs: Property taxes, homeowners insurance, and maintenance.

These costs are typically folded into the loan balance, except for the initial down payment.

Can I use other funds for the down payment?

Yes, funds for the down payment must come from savings, proceeds from selling your current home, or other liquid assets. Unsecured borrowed funds are not permitted. Talk to a Reverse for Purchase Pro to make sure your down payment funds can be used.

What happens if I want to sell the home later?

If you sell the home, the loan balance (principal plus accrued interest) is repaid from the sale proceeds. Any remaining equity belongs to you or your heirs.

What happens to the loan if I pass away?

The loan becomes due, and your heirs can repay it by selling the home or using other funds. Since reverse mortgages are non-recourse loans, heirs will never owe more than the home’s value.

Is a Reverse Mortgage for Purchase right for me?

An H4P might be a good fit if you:

Are looking to downsize or relocate.
Want to avoid monthly mortgage payments.
Have the required funds for the down payment and closing costs.
Plan to stay in the home as your primary residence.

How can South River Mortgage help?

At South River Mortgage, we specialize in helping seniors make informed decisions about Reverse Mortgages for Purchase. Use our calculator above to see what you might qualify for and contact us to discuss your unique needs with our expert advisors.

HECM for Purchase Calculator