HECM for Purchase: A Game-Changer for 62+ Homebuyers (And the Agents Who Help Them)

By Richard McWhorter, Sr. Retirement Mortgage Advisor

For most real estate agents, this scenario will sound painfully familiar:

You meet with a motivated homeowner — maybe a couple in their late 60s — who are looking to downsize, relocate, or move closer to family. They’re ready to sell… until the reality of buying again sinks in.

Suddenly the excitement shifts to hesitation:

“We just don’t want another mortgage payment.”
“We were hoping to pay cash, but we’d rather not drain our savings.”

And just like that, the momentum stalls.

It’s understandable. Fixed income retirees are cautious — and rightly so. Traditional financing can feel like a step backward. And eating into retirement savings for an all-cash deal doesn’t exactly scream peace of mind either.

But here’s the part that changes the game — for your clients and for your business:

There’s a Little-Known Third Option: HECM for Purchase (H4P)

If your buyer is 62 or older, they may qualify for a Home Equity Conversion Mortgage for Purchase — HECM for short, or H4P.

It’s a government-insured reverse mortgage that lets them buy a home — and never make a monthly mortgage payment for as long as they live there.

Yes, really.

Let’s break it down:

How Does H4P Work?

Instead of bringing 100% cash to closing or qualifying for a traditional mortgage, H4P lets your client:

• Make a down payment of around 60–70% (depending on age, interest rates, and home price)
• Finance the remaining amount with a reverse mortgage
• Never make a monthly mortgage payment — because the loan is repaid later, when the home is sold or no longer their primary residence

The only required costs after closing are the usual homeowner responsibilities:

• Property taxes
• Homeowners insurance
• HOA or maintenance fees (if applicable)

That’s it.

No credit surprises. No monthly mortgage payment dragging down their cash flow. And best of all — no need to drain retirement savings.

Why Does This Matter for You, the Agent?

Because it changes the conversation.

Instead of telling your 62+ clients what they can’t afford — or watching them “settle” out of fear — you’re giving them real options:

• They can right-size without sacrificing cash reserves.
• They can move closer to kids or grandkids — without guilt or stress.
• They can unlock the equity in their current home to help fund a better lifestyle in their next one.

And for you? That means:

• You get the listing on their current home
• You represent them as a buyer for their next home
• You build loyalty that leads to repeat referrals from their family, friends, and financial professionals

It’s not just a transaction anymore — it’s a transformation.

Real-World Example: The Reluctant Downsizer

Take Sharon and Michael, both retired teachers in their early 70s. They had a beautiful home in Winter Haven but wanted to move closer to their daughter in Sarasota. They owned their home free and clear but didn’t want to drain $350,000 of their savings to buy the next one.

Their Realtor introduced them to me, and we walked through the H4P option.

They ended up selling for $500,000, put about $275,000 down on their new home, and used the reverse mortgage to finance the rest.

Now:

• They have no monthly mortgage payment
• They kept over $200,000 in liquid savings
• Their daughter sleeps better knowing they’re closer and financially stable

And the Realtor? She got two sides of the deal and a glowing testimonial that’s brought in three more 62+ clients since.

What About the Catch?

There’s always a catch, right?

Actually, the biggest issue is awareness. H4P is widely misunderstood — or worse, not even mentioned — by most agents and lenders. FHA has made major updates over the past decade to improve safety, transparency, and borrower protections.

The result? Today’s HECM for Purchase is one of the most heavily regulated, borrower-protective mortgage programs on the market. And it’s backed by the FHA.

The Bottom Line

The HECM for Purchase isn’t for everyone. But for the right buyer — and the right Realtor — it’s a total game-changer.

So here’s your takeaway:

• When a 62+ buyer says, “We don’t want a mortgage payment,” don’t stop the conversation.
• When someone says, “We want to buy in cash, but it’ll clean us out,” don’t just nod in sympathy.

Instead, ask this:

“Have you ever heard of a reverse mortgage for purchase? It could let you buy your next home without touching all your savings — and without ever making a monthly mortgage payment.”

Or, simply say:

“One of my lenders specializes in mortgages that might be able to help you buy your next home without touching all your savings.  Would you like me to have him contact you?”

That one question could unlock the deal — and elevate your status as the go-to agent who brings real solutions.

Want the Quick H4P Cheat Sheet?

I’ve put together a simple one-pager you can keep on your phone or tablet for listing appointments or buyer consults. Just contact me, and I’ll send it over — no pressure, just value

And, be on the lookout for our next module in our HECM Training Series for Realtors:  Want More 55+ Listings? Start Speaking Their Language.

It’s a great tutorial on ways to reach the 55+ market for lenders proprietary reverse mortgages and the for buyers 62 and over for the FHA H4P mortgage.

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Let’s Have a No-Pressure Conversation

At Ridge Reverse, we’re not here to “sell” anything. We’re here to help you or your clients understand options. We work with homeowners, financial advisors, attorneys, real estate professionals and families to provide real-world clarity – not fluff.

If you’re curious how a reverse mortgage could extend your savings and reduce financial pressure, let’s talk. A short, friendly conversation could open the door to years of breathing room.

Next Steps?

Simply reach out to us at Ridge Reverse, powered by Amerifund, and let’s discuss how we can help you with a product designed specifically to meet your needs for a lifetime of happiness… while enhancing long term cashflow and quality of life. Feel free to call, text (mobile: 404-313-9785 anytime, office: 863-456-7810), or email richard.mcwhorter@ridgereverse.com and find out more.

Ridge Reverse, provides an Equal Housing Opportunity. Information is subject to change without notice. This is not an offer for extension of credit or a commitment to secure a loan. Some restrictions may apply. This material is not from HUD or FHA and has not been approved by HUD or any government agency.

Richard W. McWhorter, NMLS 1618644, as an independent reverse mortgage specialist can assist in your reverse mortgage needs in most states. Follow him on LinkedIn, Reddit, the Ridge Reverse website or contact him directly at Richard.McWhorter@ridgereverse.com.