Yes — a HECM (Home Equity Conversion Mortgage) can be used to buy a new primary residence, a program sometimes called "HECM for Purchase." The core trade-off, per the Consumer Financial Protection Bureau: you still need to be 62 or older, the home has to become your principal residence, and you bring cash to cover the gap between what the reverse mortgage provides and the purchase price plus closing costs. There's no monthly mortgage payment afterward, but there's also no way around bringing real money to the closing table.
What a HECM for Purchase actually is
A standard HECM lets a homeowner 62 or older borrow against equity they've already built in a home they own. A HECM for Purchase does something different: it combines a reverse mortgage with buying a new home in a single transaction, in one closing, instead of buying the home first and then taking out a reverse mortgage afterward.
The federal mechanic, in HUD's own words: "You can also use a HECM to purchase a primary residence if you are able to use cash on hand to pay the difference between the HECM proceeds and the sales price plus closing costs for the property you are purchasing." CFPB describes the same requirement from the consumer side — cash for the down payment, plus enough to cover "the difference between the HECM proceeds and the sales price plus any closing costs."
In plain terms: the reverse mortgage covers part of the purchase price, and the buyer's own cash covers the rest, plus closing costs that CFPB notes run higher than on a standard reverse mortgage.
Who it's for
This is not a way to buy a home with no money down — it's the opposite. It tends to fit a homeowner 62 or older who is selling a current home (often to downsize, move closer to family, or relocate somewhere with a lower cost of living) and has real proceeds or savings to put toward the new home, but doesn't want a monthly mortgage payment on the new place for the rest of their time in it.
The same rules that apply to any HECM apply here: the home purchased has to be the borrower's principal residence, not a second home or a rental, and the borrower remains responsible for property taxes, homeowners insurance, and basic upkeep for as long as the loan is outstanding — the reverse mortgage removes the monthly principal-and-interest payment, not those ongoing costs.
The requirements don't change just because it's a purchase
Because a HECM for Purchase is still an FHA-insured HECM, every standard federal requirement applies on top of the purchase mechanic:
- Age 62+. The youngest borrower on title must be at least 62 at closing, the same as any standard HECM.
- Mandatory HUD counseling. No lender can take a full application — on a purchase or otherwise — without a certificate from an independent, HUD-approved counselor.
- Financial assessment. The lender still checks that the borrower can sustain property taxes, insurance, and maintenance on the new home going forward.
- Upfront and annual mortgage insurance. The same 2026 structure applies: 2.00% of the maximum claim amount upfront, 0.50% of the outstanding balance annually, plus an origination fee capped at $6,000 — on top of the closing costs CFPB notes run higher for a purchase transaction.
In California, the same state-law protection applies as well: Civil Code § 1923.2 requires a seven-day cooling-off period after counseling before a lender can accept a final application or charge any fee, purchase or not.
What this article deliberately doesn't tell you
Neither HUD nor CFPB publishes a fixed down-payment percentage for a HECM for Purchase, and for good reason: like any HECM, how much of the purchase price the reverse mortgage can cover depends on the youngest borrower's age, the home's price, and current interest rates — the same variables that determine proceeds on a standard HECM. A number quoted online as "the" HECM for Purchase down payment is usually an estimate built for one particular scenario. A HUD-approved counselor and a lender working from your actual numbers can tell you what applies to your purchase, since nothing published by HUD or CFPB gives a single figure that fits every buyer.
The honest bottom line
A HECM for Purchase can let a homeowner 62 or older buy a new principal residence without taking on a monthly mortgage payment — but it still requires real cash at closing, still runs through the same counseling and financial-assessment steps as any HECM, and still carries closing costs CFPB says run higher than a standard reverse mortgage. It's worth reading how HECM qualification works and what a HECM actually costs before deciding whether a purchase transaction fits your move.
At Choice Home Mortgage, owner Esther Buede can walk through your specific numbers — the home you're selling, the home you're buying, and how much cash you'd actually need to bring — honestly, including telling you if a HECM for Purchase isn't the right fit. Explore the full picture on our reverse mortgage page, or call (949) 522-7310 to talk through your move.