You’ve found the perfect buyer for that lovely three-bedroom ranch. They walked through twice, loved the updated kitchen, and can already picture themselves in the sunroom. Their current home just went under contract. Everything looks great. Then they ask: “Can I even buy a home at my age without a job?” Your stomach drops. You watch what felt like a sure commission start to slip away. You mumble something about talking to a lender, but you both know what that means. Traditional mortgages require income. Your buyer just retired. This deal is dead. Except it doesn’t have to be. HECMs for Purchase offer a solution that most REALTORS don’t know exists.

HECMs for Purchase are FHA-insured reverse mortgages that allow senior homeowners 62+ to purchase a home with 40% to 60% down while financing the balance and never having another monthly payment as long as they live in the home.

Why This Question Costs You Sales

This scenario plays out in real estate offices across the country every single day. REALTORS meet qualified senior buyers who have equity, good credit, and serious motivation to move. But these buyers assume they can’t get financing because they’re retired.

Here’s what usually happens next. The buyer either gives up on moving, decides to rent instead, or forces themselves into a cheaper home in a less desirable area. You lose the sale. Another agent loses a listing. The senior settles for less than they wanted.

The senior housing market is growing fast. Baby Boomers continue to age into retirement, and many want to move. They want to downsize, relocate near family, or find a home better suited for aging in place. According to the National Association of REALTORS, buyers aged 62 and older represent a significant portion of home purchases.

But most REALTORS don’t know how to serve this market when income becomes an issue. HECMs for Purchase can solve this problem, yet agents continue to let deals slip away. You’re leaving money on the table, and you’re missing the chance to help people who genuinely need your expertise.

The Solution REALTORS Don’t Know About: HECMs for Purchase

HECMs for Purchase (H4Ps) changes everything. This FHA-insured program lets buyers aged 62 and older purchase a home without monthly mortgage payments.

Here’s how it works. Your buyer sells their current home and uses those proceeds as a down payment on their next home (usually between 40% for older borrowers and 60% for borrowers in their 60s or early 70s). Once they close, they own the home outright with no monthly principal and interest payments.

The key difference from traditional mortgages? Reverse mortgage lenders qualify buyers based on their assets and ability to maintain the home, not their monthly income. Your retired buyer with no W-2 can still get approved.

Let’s look at real numbers. Say your buyer sells their current home for $500,000. They want to purchase a $400,000 home in a nearby community. With a HECM for Purchase, they might put down around $200,000 (the exact amount varies based on age and interest rates). The H4P loan covers the remaining $200,000. They move into their new home with no monthly mortgage payment and still have $200,000 from their sale proceeds left over for emergencies, travel, or whatever they choose.

Who qualifies? Buyers must be at least 62 years old, plan to use the home as their primary residence, and purchase a property that meets FHA standards. They need enough funds for the required down payment (typically 50-60% of the purchase price, depending on age), and they must demonstrate they can pay property taxes, homeowners insurance, and home maintenance costs.

Five Scenarios Where HECMs for Purchase Close the Deal

Scenario 1: The Downsizer Who’s Almost There

Margaret and Tom are selling their four-bedroom family home for $425,000. They want a smaller, single-story home in the same neighborhood for $320,000. They’d love to pay cash and avoid any mortgage, but they also want to keep money accessible for healthcare costs and helping their grandchildren with college.

With H4P, they can purchase the $320,000 home with about $170,000 down, keep over $250,000 liquid, and have no monthly mortgage payment. They get the home they want without draining their savings.

Scenario 2: The Retiree Moving to Family

Susan is selling her California home for $650,000 to move near her daughter in Tennessee, where homes cost around $275,000. She’s on a fixed income from Social Security and a small pension. She doesn’t want to tie up all her California proceeds in the new home because she likes having a financial cushion.

H4P lets Susan purchase the Tennessee home with roughly $145,000 down, preserve most of her equity, and eliminate monthly mortgage worries on her fixed income.

Scenario 3: The Cash Preserver

Robert sold his home for $380,000. He found a perfect $290,000 condo near his favorite golf course. He could pay cash, but at 68, he worries about having enough liquid assets for potential long-term care needs down the road.

With H4P, Robert puts down about $155,000, finances the rest with no monthly payments, and keeps $225,000 accessible. He sleeps better knowing he has options if his health needs change.

Scenario 4: The Upgrade Seeker

Linda is selling her modest ranch for $250,000. She wants to buy a nicer home for $340,000 with better accessibility features, but she doesn’t have enough cash to buy it outright. Traditional financing won’t work because she’s retired.

H4P allows Linda to use her $250,000 in sale proceeds, add about $180,000 through H4P, and buy the home she actually wants with no monthly payment. She trades up instead of settling.

Scenario 5: The Widow on Reduced Income

Patricia recently lost her husband. Their joint income easily covered their mortgage, but now she’s living on survivor benefits that are significantly lower. She wants to sell their family home ($390,000) and buy a smaller place ($270,000) near her sister. Her reduced income won’t qualify her for a traditional mortgage.

H4P doesn’t care about her income reduction. Patricia can purchase the $270,000 home with about $145,000 down, eliminate monthly mortgage payments entirely, and have over $240,000 remaining from her sale.

How to Spot HECM for Purchase Opportunities in Your Pipeline

Start paying attention to these red flags in your buyer consultations. When you hear any of these, H4P might be the perfect solution:

Your buyer is 62 or older. They’re selling a home with significant equity. They mention being retired or on a fixed income. They express concern about monthly obligations. They want to preserve cash for emergencies or family. They say things like “I wish I could afford that one” when touring homes above their cash-only budget.

Ask strategic questions during your initial buyer consultation. “Are you planning to pay cash or will you need financing?” Follow up with “Have you spoken with a lender about your financing options?” If they’re 62 or older and seem uncertain, add this: “Are you familiar with HECMs for Purchase? They’re designed specifically for buyers in your situation.”

Bring up H4P early in the process. Don’t wait until you’ve found the perfect home and the buyer says they can’t afford it. Plant the seed during your first meeting. Give them time to research it and talk to an H4P lender before you start touring properties.

How to Talk About H4P Without Giving Financial Advice

Here’s what stops many REALTORS from mentioning HECMs for Purchase: fear of crossing the line into financial advice. You’re not a loan officer or financial planner. You don’t want to get sued for giving advice outside your expertise.

Good news. You can educate buyers about H4P without giving financial advice. You just need to know the difference.

You CAN say: “A HECM for Purchase is a government-insured program that lets buyers 62 and older purchase a home without monthly mortgage payments. Many of my senior clients find it helpful. Would you like me to connect you with a lender who specializes in this program?”

You CANNOT say: “You should definitely use HECM for Purchase” or “This is better than paying cash” or “You’ll save money this way.”

See the difference? You’re sharing that the program exists and offering to connect them with an expert. You’re not telling them what to do with their money.

Build relationships with lenders who handle H4P loans. Not all lenders offer them, and even those who do may not actively promote them. Find two or three in your area who know H4P well and can explain it clearly to buyers. When you encounter a potential H4P situation, you can confidently say, “I work with several lenders who specialize in this. Let me introduce you.”

Position yourself as a knowledgeable resource, not a financial advisor. You’re the REALTOR who understands the senior market. You know the tools available to senior buyers. You connect people with the right experts. That’s professional, ethical, and valuable.

Your Next Steps to Capture This Market

Start by learning the basics of HECM for Purchase. You don’t need to become an expert, but you should understand how the program works, who qualifies, and when it makes sense. This knowledge takes maybe an hour to acquire and could translate into multiple additional sales per year.

Connect with H4P-approved lenders in your area. Schedule a coffee meeting. Ask them to explain their process. Understand how long approvals take and what documents buyers need. Build these relationships before you need them.

Add H4P awareness to your buyer consultation checklist. When you meet with buyers 62 and older who are selling a home, make sure HECMs for Purchase comes up in conversation. It takes 30 seconds to mention and could save a deal.

Consider marketing yourself as senior-friendly and H4P-knowledgeable. This sets you apart from agents who don’t understand this market. Seniors will seek you out because you speak their language and know their options. Being known as the local expert on HECMs for Purchase can become a significant competitive advantage.

The question “Can I even buy a home at my age without a job?” doesn’t have to mean a dead deal anymore. When you know about HECMs for Purchase, you can turn that dreaded question into an opportunity. You’ll close more sales, serve more clients, and build a reputation as the agent who actually knows how to help senior buyers.

That’s not just good for your business. That’s good for everyone involved.

Connect with the HECM Coach to learn more about how HECMs for Purchase can grow your REALTOR business. Or, consider having the HECM Coach, Todd Christensen, speak at your upcoming REALTOR event.