Realtors®: Help Senior Clients Explore More Ways to Move

Many older homeowners want to downsize, move closer to family, purchase a single-level home, or find a property that better fits their current lifestyle. But even when they have substantial equity, they may hesitate because they do not want a new monthly mortgage payment or do not want to use all of their cash to buy a home outright.

A HECM for Purchase may help eligible buyers age 62 and older purchase a new primary residence using a reverse mortgage. For the right client, it can open up options they may not have realized were available.

For Realtors®, this creates new opportunities to help senior clients move forward with confidence while opening doors to transactions that may not otherwise happen.

What is a HECM for Purchase?

A HECM for Purchase is an FHA-insured reverse mortgage used to buy a new primary residence. The buyer brings a required down payment to closing, and the reverse mortgage covers the remaining eligible portion of the purchase price.

The buyer is not required to make monthly mortgage payments. They must continue to live in the home as their primary residence, pay property taxes and homeowners insurance, maintain the property, and meet all loan requirements.

Here's how it works:

The client sells their current home or uses other eligible funds for the required down payment.
The HECM for Purchase finances the remaining eligible portion of the new home purchase.
The client moves into the new home as their primary residence.
The loan is repaid later, typically when the home is sold, the borrower moves out permanently, or the last borrower passes away.

Why This Matters for Your Senior Buyers

A HECM for Purchase may be helpful for clients who:

Want to move but are concerned about monthly mortgage payments
Would like to preserve more savings instead of paying all cash
Need a more accessible or lower-maintenance home
Want to relocate closer to family or healthcare
Have enough equity or available funds for the required down payment

How a HECM for Purchase Can Benefit Realtors®

Understanding HECM for Purchase can help you identify opportunities that might otherwise be missed.

Expand Opportunities with Senior Clients - Some seniors assume moving is financially impossible because they don’t want another mortgage payment. Understanding HECM for Purchase may help them reconsider options they previously ruled out.

Unlock More Listings and Purchases - Clients who feel “stuck” in their current home may become both sellers and buyers once they learn there’s another financing option available.

Differentiate Yourself in the Market - Having knowledge of reverse mortgage purchase financing helps position you as a resource for the growing senior market.

Help Clients Make More Strategic Financial Decisions - For some retirees, preserving cash reserves and reducing monthly obligations may be just as important as finding the right home.

Build Stronger Referral Relationships - Providing thoughtful solutions for seniors often leads to long-term trust, referrals, and repeat business from families and professional partners.

Common Questions Your Clients May Ask About

Reverse Mortgages

Some clients may initially feel hesitant simply because reverse mortgages are misunderstood.

Here are a few answers to common questions that often provide reassurance.

Will I still own the home?

Yes. The borrower owns the home and holds title, just as they would with a traditional mortgage, as long as they meet the loan obligations.

Will I have to make monthly mortgage payments?

No monthly mortgage payments are required. The borrower must still pay property taxes, homeowners insurance, HOA dues if applicable, and maintain the home.

Can my heirs inherit the home?

Yes. When the loan becomes due, heirs may sell the home, refinance or pay off the loan to keep it, or choose not to keep the property. HECMs are non-recourse, so heirs will not owe more than the home is worth when the loan is repaid.

A Valuable Resource for Your Senior Clients

As more homeowners age 62 and older consider what their next chapter should look like, Realtors have an opportunity to be a valuable resource in the conversation.

A HECM for Purchase is not the right fit for every buyer, but for the right client, it may open the door to options they didn’t realize were available. It can help them explore a home that better fits their needs, preserve more of their savings, and avoid taking on required monthly mortgage payments, as long as they continue to meet the loan obligations.

Because reverse mortgages are often misunderstood, education matters. When you understand the basics of HECM for Purchase financing, you can help your senior clients ask better questions, consider more possibilities, and move forward with greater confidence.

If you’d like to learn more about how this program works, I’d be happy to walk you through the process and help you recognize when it may be worth exploring for your clients.

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