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Calculators  /  HECM for Purchase (H4P) Calculator
Home Equity & Reverse

HECM for Purchase (H4P) Calculator

Buy your next home with a reverse mortgage — make a one-time down payment and have no required monthly mortgage payments for as long as you live there.

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Estimate
Purchase price$500,000
Estimated principal limit factor45%
Reverse mortgage contribution$224,950
Estimated down payment needed$275,050
Down payment as % of price55%
Required monthly mortgage payment$0
Down payment typically comes from the sale of your current home or savings. You still pay property taxes, insurance, and upkeep. Closing costs (not shown) can often be financed and slightly reduce proceeds.
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A HECM for Purchase (H4P) lets buyers 62+ purchase a new primary residence with a reverse mortgage. You make a single down payment and the loan covers the rest, with no required monthly mortgage payment while you live there.

It’s popular for right-sizing in retirement — moving closer to family or into a more accessible home while preserving cash flow.

Frequently asked questions

How much down payment do I need?

It depends on age, expected rate, and price — usually a substantial percentage. This gives an illustrative estimate; a loan officer confirms exact figures.

Do I still have monthly payments?

No required monthly mortgage payment. You still pay taxes, insurance, HOA dues, and maintenance.

Who is eligible?

Generally borrowers 62+ buying a primary residence who can cover the down payment and property charges and complete counseling.

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