Reverse for purchase
Sell the current home, apply a large part of the proceeds as the down payment, and the reverse mortgage funds the balance. You move without taking on a monthly mortgage payment.
Ed Parcaut · Mortgage strategist in Modesto, California · NMLS #235384
BUY YOUR NEXT HOME
WITH A REVERSE MORTGAGE.
A reverse mortgage can be used to buy a home, not only to refinance one. It is called a HECM for Purchase: you put down a substantial sum, usually from selling your current home, and the reverse mortgage covers the rest, with no required monthly mortgage payment. You still pay property taxes, insurance and upkeep, and you must live in the home as your primary residence.
Purchase or refinance
ONE PRODUCT.
TWO WAYS TO USE IT.
Most people aged 62 and over only hear about the refinance version. The purchase version lets you move, downsize or right size in one transaction instead of two, and it is the part almost nobody explains properly.
Reverse for refinance
Stay where you are and convert part of your equity into a lump sum, a line of credit, monthly payments or a mix. Existing mortgages are paid off first from the proceeds.
Counselling is required
Independent HUD approved counselling comes before an application, and in California a lender must wait seven days after counselling before taking your application. It is a protection, not a formality.
The obligations continue
Property taxes, homeowners insurance, any HOA dues and reasonable maintenance remain yours, and the home must remain your primary residence. Falling behind on those can make the loan due.
Program availability and requirements vary by lender and by your individual file. Nothing here is a commitment to lend.
What to gather
BRING THESE
TO THE TABLE.
Every reverse mortgage is worked out from your age, the property and the numbers. This is what the conversation needs.
- Ages of everyone on title. The calculation depends on the age of the youngest borrower, and a younger spouse changes the picture.
- Details of the home you are leaving. Estimated sale price and any mortgage balance still owed on it.
- Details of the home you want to buy. Price range, county, and whether it is a house, a condominium or a manufactured home. Each has its own eligibility rules.
- Your income and other resources. A financial assessment looks at whether taxes, insurance and upkeep can comfortably be covered over time.
Can you buy a house with a reverse mortgage?+
Yes. A HECM for Purchase lets a borrower aged 62 or over buy a primary residence using a large down payment plus reverse mortgage proceeds, with no required monthly mortgage payment afterwards.
How much do I need to put down?+
A substantial portion of the price, and the exact share depends on the age of the youngest borrower and the terms available at the time. It is calculated for your situation rather than set at a fixed percentage.
Do I still own the home?+
Yes. Title stays in your name. The reverse mortgage is a lien against the property, the same as any other mortgage.
What happens when I move out or pass away?+
The loan becomes due. The home is normally sold to repay it, and any remaining equity belongs to you or your heirs. Heirs can also repay the balance and keep the home.
Can I do this with a condominium?+
Sometimes. The project generally needs to meet FHA eligibility requirements, so the property should be checked before an offer is written.
Is counselling really required?+
Yes. Independent HUD approved counselling is required before an application, and California adds a seven day wait after counselling before a lender may take that application.
Related reading
KEEP LOOKING.
Reverse mortgages
The full hub, with the California questions answered in plain language.
Read the hubBuying another home
Already have a mortgage and want to buy again. The three routes that work.
Read the guideFree guides
Preparation guides you can read before your first conversation.
Browse the guidesReviews on Google
WHAT CLIENTS SAY
ABOUT WORKING WITH ED.
5.081 Google reviewsRead them on Google
Working with Ed Parcaut on our vacation home purchase was an outstanding experience from start to finish. Ed's expertise and deep knowledge of the lending process made everything feel seamless. He took the time to explain every step clearly, answered all of our questions with patience, and helped us navigate the unique aspects of financing a second home with confidence. What truly stood out was Ed's responsiveness and efficiency. No matter the time or situation, we always received quick updates and fast answers, which made the entire process move smoothly and on schedule. His professionalism, attention to detail, and commitment to excellent service exceeded our expectations. I highly recommend Ed to anyone looking for a knowledgeable, reliable, and highly responsive lender — for any home purchase.
Ed made the process so easy and simple for my wife and I. When we had questions, he had answers. He communicated with us constantly and clearly. I absolutely recommend his services. Owning our forever home post-military retirement and finally settling down and raising our family has been our goal for a long time and Ed helped make that a reality for us. Thanks again Ed!
I am thoroughly blessed, thankful and satisfied with the process. And all the time that it took the different steps it took to get this process done. Thank you, well done.
Ed is a true professional and I would recommend him to friends and family without hesitation. He kept us informed every step of the way all the way to closing! He's also just a really nice human being. No need to look anywhere else for your home loan needs cause Ed knows his stuff.
From beginning, middle, and end of this home lending experience my work with Ed, and Amy has been wonderful. They have been very supportive, and generous with their kindness, and they have excellent professionalism with regard to working well with all parties involved. Their knowledge, experience, and time has been much appreciated. Thank you so much, and I look forward to the next time we meet!
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