Are you a senior homeowner and feel your current home no longer meets your needs? 

A Home Equity Conversion Mortgage for Purchase (H4P) is a financial tool that allows seniors to buy a new primary residence by taking out a reverse mortgage on the home. This is specifically designed for homeowners who are 62 years of age or older, offering a way to purchase a new home without the obligation of monthly mortgage payments, though they are still responsible for property taxes, homeowners insurance, and maintenance.

The H4P program is a facet of the Federal Housing Administration’s (FHA) Home Equity Conversion Mortgage (HECM) program. It works by allowing the buyer to combine the dynamics of a reverse mortgage with the purchase of a new home. Essentially, the buyer contributes a significant down payment (usually around 50% – 60% of the purchase price, depending on the buyer’s age and the loan’s interest rates), and the HECM for Purchase loan covers the rest. This setup can be particularly appealing for seniors looking to downsize, relocate closer to family, or simply move into a home that better suits their retirement lifestyle without depleting their savings.