If you work with buyers and sellers who are 62 or older, you already know that their needs are different. They don’t just move. They make decisions that will shape the rest of their lives. And one of the most powerful tools available to them is one that most real estate agents have never mentioned in a client conversation: the HECM for Purchase.

HECM stands for Home Equity Conversion Mortgage. It is a federally insured reverse mortgage program backed by the U.S. Department of Housing and Urban Development (HUD). The HECM for Purchase lets a buyer age 62 or older purchase a new primary residence using a reverse mortgage, all in a single transaction.

Here is what makes it different from a traditional home purchase. The buyer brings a down payment of roughly 50% to 60% of the purchase price. The exact percentage depends on the borrower’s age at closing and current interest rates. A HECM lender can run precise numbers for any specific scenario. The HECM loan covers the remaining balance. With a HECM for Purchase, like any reverse mortgage, the buyer makes no required monthly mortgage payment on the new home for as long as they live in it. Even if they live to be 105, outlive the equity in the home, or live through a major downturn in the economy, still… no… monthly payments.

The loan balance does grow over time. It becomes due when the last borrower permanently leaves the home, sells, or passes away. In the meantime, the borrower must continue paying property taxes, homeowners insurance, and HOA fees if applicable, while keeping the home livable. Those are the ongoing responsibilities.

That is the program in plain terms. But what does it look like in real life? Let me walk you through five scenarios you might recognize from your own client conversations.

HECM for Purchase Case Study 1: The Downsizing Couple

The Clients: A married couple, both age 70, living in a 4-bedroom home they raised their family in. The home has appreciated significantly over the years.

The Problem: They want to downsize from their $625,000 family home, which still carries a $42,000 mortgage balance, into a smaller, more accessible home near their grandchildren priced at $460,000. They do not want another traditional mortgage payment eating into their retirement budget.

The Financials:

• Required monthly mortgage payment: $0
• Current home sale price: $625,000
• Less remaining mortgage balance: ($42,000)
• Less estimated seller closing costs: ($37,500)
• Less estimated moving costs: ($6,000)
• Net proceeds from sale: $539,500
• New home purchase price: $460,000
• Less HECM for Purchase down payment (58%): ($266,800)
• HECM loan amount: $193,200
• Proceeds retained after purchase: $272,700

NOTE: Down payment percentages in these examples are estimates. Actual percentages vary based on the borrower’s age at closing and current interest rates. A HECM lender can provide more accurate figures.

How the HECM for Purchase Helps: They sell their large home and use a portion of the proceeds as the down payment on a new, smaller home. The HECM covers the rest. They keep the remaining sale proceeds in savings or investments for retirement income. They move into the new home with no required monthly mortgage payment.

The Outcome: They are closer to family, living in a more manageable space, and carrying no new mortgage burden. Their retirement savings remain untouched.

Your Role as Their REALTOR: This conversation needs to happen before they list their current home. When you first sit down with them to talk about selling, ask what they plan to do next. If they mention buying again, introduce the HECM for Purchase. Understanding that program could change how much they need from the sale and what kind of home they can afford to move into.

HECM for Purchase Case Study 2: The Rightsizing Single Retiree

The Client: A single woman, age 67, living in a two-bedroom condo. She wants to buy a single-story home with more space and better accessibility features. She has retirement savings, but she does not want to deplete them on a home purchase.

The Problem: She owns her condo free and clear, and it is expected to sell for $340,000. She has found a single-story accessible home that fits her needs, priced at $480,000. She cannot buy it outright, and she does not want a traditional mortgage payment reducing her monthly cash flow.

The Financials:

• Current home sale price: $340,000
• Less remaining mortgage balance: ($0)
• Less estimated seller closing costs: ($20,400)
• Less estimated moving costs: ($3,500)
• Net proceeds from sale: $316,100
• New home purchase price: $480,000
• Less HECM for Purchase down payment (60%): ($288,000)
• HECM loan amount: $192,000
• Proceeds retained after purchase: $28,100
• Required monthly mortgage payment: $0

Note: Her IRA savings remain completely untouched. The $28,100 retained provides an additional liquid cushion on top of those retirement assets.

How the HECM for Purchase Helps: She uses funds from her condo sale as the down payment on the new home. The HECM covers the rest of the purchase price. She preserves her IRA savings, and she makes no monthly mortgage payment on the new home.

The Outcome: She moves into a home that fits her lifestyle and her physical needs, without taking on a payment that eats into her fixed income.

Your Role as Their REALTOR: Pay attention when a client says something like, “I’m just not sure I can afford the payment.” That is your signal. Ask them if they have heard of the HECM for Purchase. Many clients in their late 60s or early 70s have no idea this option exists. You could be the person who changes the entire trajectory of their search.

HECM for Purchase Case Study 3: The Relocating Retiree

The Client: A 72-year-old widower living in a high cost-of-living metro area. He wants to relocate to a different region to be closer to his adult children. His current home has substantial equity.

The Problem: He owns his high cost-of-living home free and clear, and it is expected to sell for $875,000. He has found a comfortable home near his family in a lower cost market, priced at $380,000. He wants to move without spending the bulk of his proceeds on the new purchase, since that equity needs to supplement his Social Security income for years to come.

The Financials:

• Required monthly mortgage payment: $0
• Current home sale price: $875,000
• Less remaining mortgage balance: ($0)
• Less estimated seller closing costs: ($52,500)
• Less estimated moving costs: ($12,000)
• Net proceeds from sale: $810,500
• New home purchase price: $380,000
• Less HECM for Purchase down payment (56%): ($212,800)
• HECM loan amount: $167,200
• Proceeds retained after purchase: $597,700

How the HECM for Purchase Helps: He sells his current home and uses a portion of the proceeds as the down payment on a new home in the new location. The HECM loan covers the rest. He keeps the remaining proceeds to supplement his Social Security income. No monthly mortgage payment in the new state.

The Outcome: He relocates to be near family, maintains a healthy reserve of liquid savings, and lives mortgage-payment-free in his new home.

Your Role as Their REALTOR: If you work with relocation clients, this is a scenario worth knowing inside and out. When a senior client mentions moving from another state, ask early whether they have explored their mortgage options. Introducing the HECM for Purchase in the first conversation can save them from a search that is based on the wrong assumptions about what they can afford.

HECM for Purchase Case Study 4: The 55-Plus Community Move

The Clients: A couple, ages 68 and 65, who are tired of yard work, home maintenance, and neighborhood noise. They want to move into a 55-plus community with a pool, organized activities, and a low-maintenance lifestyle. Their current home has plenty of equity.

The Problem: Their current home carries a remaining mortgage balance of $28,000 and is expected to sell for $530,000. They have found a home in a 55-plus community they love, priced at $395,000. They do not want to spend the majority of their equity on the purchase and leave their retirement savings exposed.

Note: For couples, the HECM for Purchase uses the age of the younger borrower to set the down payment percentage.

The Financials:

• Required monthly mortgage payment: $0
• Current home sale price: $530,000
• Less remaining mortgage balance: ($28,000)
• Less estimated seller closing costs: ($31,800)
• Less estimated moving costs: ($5,500)
• Net proceeds from sale: $464,700
• New home purchase price: $395,000
• Less HECM for Purchase down payment (62%, based on younger borrower age 65): ($244,900)
• HECM loan amount: $150,100
• Proceeds retained after purchase: $219,800

How the HECM for Purchase Helps: They sell their current home and use part of the proceeds as the HECM for Purchase down payment on a home in the 55-plus community. The HECM covers the remaining balance. Their retirement savings stay intact, and they make no required monthly mortgage payment on the new home.

The Outcome: They enjoy the lifestyle they have been looking forward to without wiping out their financial cushion. They have peace of mind and a community they love.

Your Role as Their REALTOR: Note that if the community has HOA fees, those are still the buyer’s responsibility. Make sure your clients understand that. Also, confirm that the community and the property type meet HECM eligibility requirements. Connecting your clients with a HUD-approved HECM counselor early in the process will help everyone avoid surprises.

HECM for Purchase Case Study 5: The Accessibility Upgrade

The Client: A 74-year-old woman living alone in a two-story home. The stairs have become a safety concern. She wants to move into a single-story home with wider doorways, a roll-in shower, and no steps.

The Problem: She owns her two-story home free and clear, and it is expected to sell for $415,000. The accessible single-story home she needs, with wider doorways, a roll-in shower, and no stairs, is priced at $490,000. Without a financing solution, that price point is out of reach given what her current home will net.

The Financials:

• Current home sale price: $415,000
• Less remaining mortgage balance: ($0)
• Less estimated seller closing costs: ($24,900)
• Less estimated moving costs: ($5,000)
• Net proceeds from sale: $385,100
• New home purchase price: $490,000
• Less HECM for Purchase down payment (55%): ($269,500)
• HECM loan amount: $220,500
• Proceeds retained after purchase: $115,600
• Required monthly mortgage payment: $0

Note: Without the HECM for Purchase, her $385,100 in net proceeds would not cover the $490,000 purchase price at all. The HECM makes this home possible.

How the HECM for Purchase Helps: She sells her current home and uses the proceeds as the down payment on a new single-story, accessible home. The HECM loan funds the rest of the purchase. She moves into a home that is safer and better suited to her needs, without a monthly mortgage payment.

The Outcome: She is safer, more comfortable, and living in a home designed for her current stage of life. She did not have to drain her savings to make it happen.

Your Role as Their REALTOR: This client may not realize the connection between her safety concern and a real estate solution. She may think she needs to modify her current home or wait until things get worse. When a senior client tells you they are struggling with their home’s layout or stairs, that is an opening. Ask them if they have considered moving into a more accessible space, and then ask whether they know about the HECM for Purchase.

The Timing Conversation That Changes Everything

Every one of these scenarios has something in common. The best outcome happens when the HECM for Purchase conversation takes place before the client lists their current home.

Why does timing matter so much? Because the down payment on the new home often comes from the sale proceeds of the current one. If your client does not know about the HECM for Purchase before they sell, they may not know how much they actually need from the sale. They may underprice, overspend, or walk away from the perfect next home because they thought it was out of reach.

When you bring this conversation in early, you become more than just a listing agent or a buyer’s agent. You become a trusted advisor who helped your client see possibilities they did not know they had.

Ready to Learn More?

The HECM for Purchase is not complicated once you understand it. And it can genuinely change the way you serve your senior clients.

Visit our Downloads to explore free and premium resources you can use to build your business with senior clients and their families. Whether you are just learning about reverse mortgages or ready to go deeper, there is a path forward for you there.

Your senior clients are out there right now, trying to figure out their next move. You can become the professional who helps them find it.

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This post was written by the founder of HECMCoach.com, a HUD-certified and HECM-certified housing counselor and Accredited Financial Counselor (AFC) through AFCPE. The information in this post is educational and does not constitute financial or legal advice nor does it represent the views of the writers employer. Readers should consult a licensed mortgage professional and a HUD-approved housing counselor with a HUD-approved housing counseling agency for guidance specific to their situation.