Realtors®: Help Your Senior Clients Move with Greater Financial Flexibility

Today’s senior homebuyers often want to simplify their lifestyle, relocate closer to family, or move into a home that better supports aging in place. But even with substantial equity, many retirees hesitate to move because they’re concerned about monthly mortgage payments or qualifying for traditional financing on a fixed income.

That’s where a HECM for Purchase can become an incredibly valuable solution.

A HECM for Purchase allows eligible buyers age 62 and older to purchase a new primary residence using a reverse mortgage—without required monthly mortgage payments.

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 a federally insured reverse mortgage program backed by the FHA that allows seniors to combine a down payment with a reverse mortgage to buy a new home.

Instead of taking out a traditional mortgage with monthly payments, the buyer contributes a significant down payment—typically using proceeds from the sale of their current home or other assets—and the reverse mortgage finances the remaining balance.

Here's how it works:

The buyer makes a substantial down payment, typically between 40% and 60% of the home’s purchase price, depending on their age and the interest rate.
The reverse mortgage covers the rest of the purchase price.
The buyer never has to make monthly mortgage payments—they simply maintain the home and pay property taxes and insurance.
The loan becomes due when the homeowner moves out, sells the property, or passes away.

Why This Matters for Your Senior Buyers

Many older homeowners are equity-rich but cash-flow conscious.

They may want to move, but they also want to:

Avoid adding another monthly mortgage payment
Preserve retirement savings and investments
Reduce financial pressure during retirement
Purchase a home better suited for long-term living

A HECM for Purchase may help make that possible

Clients often use this strategy to:

Downsize into a more manageable property
Move closer to children or grandchildren
Purchase a single-story or age-friendly home
Relocate to a retirement or 55+ community
Improve monthly cash flow during retirement

Example Scenario

Imagine a client selling a longtime family home and purchasing a smaller property that better fits their lifestyle.

Instead of using all of their proceeds to buy the next home outright—or taking on monthly mortgage payments—they may be able to use a portion of their equity as a down payment while the reverse mortgage covers the remaining balance.

This can allow them to:

Preserve more liquid assets for retirement
Reduce monthly expenses
Maintain greater financial flexibility moving forward

Every client scenario is different, but for the right borrower, this strategy can be life-changing.

How a HECM for Purchase Can Benefit Realtors®

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.

Addressing Common Misunderstandings About

Reverse Mortgages

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

Here are a few important points that often provide reassurance.

The Borrower Still Owns the Home - A reverse mortgage does not transfer ownership to the lender. The homeowner remains on title.

Heirs Still Have Options - When the loan becomes due, heirs can typically sell the property, refinance the balance, or keep any remaining equity after the loan is repaid.

The Loan Is Non-Recourse - Borrowers and heirs will never owe more than the home’s value when the property is sold.

FHA Protections Are Built In - HECM loans are federally insured and require independent counseling to help borrowers fully understand the program.

A Valuable Resource for Your Senior Clients

The senior market continues to grow, and many older homeowners are looking for guidance from professionals who understand the unique financial challenges of retirement.

A HECM for Purchase can be a powerful option for helping clients move into a home that better fits their lifestyle—without adding the burden of monthly mortgage payments.

If you’d like to learn more about how reverse mortgage purchase financing works, I’d be happy to help you better understand the process and determine when it may be a fit for your clients.Some seniors may hesitate when they hear the word "reverse mortgage" because of myths and misunderstandings. Here’s how you can reassure them:

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Richard Wood

Ph: 650-750-5032

NMLS#1435894

Reverse Mortgage Branch Manager

1234 Cortez Ave, Burlingame, CA 94010

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Reverse mortgage advisor serving Burlingame, the Bay Area Peninsula and San Mateo County.

Licensed by the California Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act.

NMLS # 1435894 | Licensed through Traditional Mortgage Acceptance Corporation dba GoodLife Home Loans | NMLS ID: 971307 | 777 108th Avenue NE, Suite 1670, Bellevue, WA 98004

Reverse Mortgage Disclaimer: A reverse mortgage is a loan that must be repaid when the last borrower no longer resides in the home, the property is sold, or the borrower fails to meet loan obligations such as paying property taxes and homeowners insurance or maintaining the property. Failure to meet these obligations may result in foreclosure. Not all borrowers will qualify. Terms and conditions apply. Consult with a tax advisor for potential tax implications and with a financial advisor for any impact on government benefits.

This website has not been reviewed, approved, or issued by HUD, FHA, or any government agency. The products or services offered herein have not been sponsored or endorsed by any government agency.

This is not a commitment to lend. Terms and conditions are subject to change without notice.

For additional information visit NMLS Consumer Access