Reverse for Purchase Loan

What is a Reverse for purchase loan?

A HECM for Purchase Loan, also known as a Reverse for Purchase, is a government-insured loan that gives homeowners 62 and older the convenience and flexibility to purchase a new home while eliminating mortgage payments. You make a down payment and let your HECM for Purchase loan cover the rest. This loan is designed to allow seniors to purchase a new principal residence and obtain a reverse mortgage within a single transaction, the program enables senior homeowners to relocate to other geographical areas to be closer to family members, downsize to homes that meet their physical needs or help with their monthly budget by eliminating their mortgage payments.

Key features of
Reverse for Purchase Loans include:


To be eligible for a Reverse for Purchase loan, you typically need to be at least 62 years old, possess a considerable amount of equity in your existing property (or have the capability to make a substantial down payment), and meet specific financial requirements.

Down Payment

When you decide to buy a new home, you’ll need to make a down payment. This payment is typically made using the proceeds from the sale of your current home, your savings, or other available sources. The amount of the down payment will depend on several factors, including your age, the appraised value of the new home, and current interest rates.

Reverse Mortgage

A Reverse for Purchase loan can cover the remaining cost of a new home. It’s a type of reverse mortgage where you don’t make monthly payments. The loan balance accumulates and the lender is repaid when you sell the home, move out, or pass away.

Ownership and Occupancy

You must use the new home as your primary residence and cover property taxes, insurance, and maintenance.


When you take out a Home Equity Conversion Mortgage (HECM) loan, the loan becomes due in case you sell your home, move out, or pass away. At that time, the lender is repaid from the proceeds of the home sale. If you sell the home for an amount exceeding the loan balance, you or your heirs will receive the remaining equity. However, if you sell the home for a lower price than the loan balance, the FHA insurance that comes with HECM loans will typically cover the shortfall. In such a case, neither you nor your heirs will be held responsible for the difference.


You can start the application process on our website by filling out the form online, setting up a loan consultation appointment, or calling us on the phone. There is not an application fee.
Your borrowing capacity depends on your income, expenses, creditworthiness, and the type of loan you’re applying for. We’ll work with you to find a loan amount that works with your budget and your comfort level.
We will typically work through this together. You will want to lock in once you are under contract on your home and your loan has been uploaded to the lender.
Yes, you can make extra payments and even pay off your mortgage early. If you are paying off your mortgage you can do so after making six monthly payments without a penalty.
Yes, you can make extra payments and even pay off your mortgage early. If you are paying off your mortgage you can do so after making six monthly payments without a penalty.
Closing costs include fees for services such as title company costs, setting up your escrow account (property taxes and insurance), origination fees from lender for underwriting, etc. We typically have the lender pay our origination fee to help keep your closing costs lower.
We offer a range of home loan options, including Conventional, FHA, VA, USDA, Jumbo, Bank Statement, Asset Qualifier, Refinance, Reverse Mortgage, and so many others. Each loan type has unique features to suit different financial situations. Let our expertise guide you to find the one that is right for you.
Loan Approval: You receive final approval from the lender (clear to close). Closing: The final paperwork is signed by all parties and the loan is then funded and recorded.
As mortgage brokers we have access to 60+ wholesale lenders providing you with multiple options for all your home buying needs with lower rates and exceptional service. At Loans By Vicky, we stay in constant contact with you throughout the entire process. We are still here for you even after you close. We love making friends one mortgage at a time!

Get Pre-Approved quickly for your Reverse to Purchase loan through our app!

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