Skip to content

John Doe

For testing purposes

00000

0000000000

Home Equity Conversion Mortgage for Home Purchase (H4P)

If your goal is to right size your housing needs by purchasing a new home instead of accessing the equity in your current home, one way to do so is to utilize a HECM for Home Purchase (also known as an H4P, Reverse For Purchase and Purchase HECM).

This means utilizing a HECM loan on the home you are buying instead of having to qualify for a traditional mortgage. When you utilize a Purchase HECM, your HECM funds are paid in a lump sum directly to the seller at the close of escrow – just like with a traditional mortgage. However, the big difference is that you will never be required to make monthly loan payments for as long as you live in your new home** and continue to satisfy loan conditions. Loan requirements include home maintenance and payment of property taxes, homeowner’s insurance, and any HOA fees.

The Purchase HECM is ideal for those who want to purchase the best home for their retirement needs – without impacting their monthly cash-flow by taking on another monthly payment obligation.

Benefits of Purchasing Your Next Home With a HECM

Illustration of Step 1
Increased purchasing power to buy the home that best meets your needs
Illustration of Step 2
Keep additional cash assets in reserve to maintain a more comfortable retirement
Illustration of Step 3
Increased monthly cash flow- since monthly mortgage payments are not required you are able to minimize the impact on your monthly obligations

Comparing H4P to other Purchase Options

Graph comparison of H4P to other options

Qualify for a HECM for Purchase

Whether you are rightsizing your housing needs, moving closer to family, a better climate or simply to a home that better meets your needs, qualifying criteria for a HECM is much easier than that of a traditional mortgage. All you need is…

illustration of couple and home

Requirements of the Homeowner and Safeguards

Buying a Home