Buying Your Next Home Without a Monthly Mortgage Payment
Most people think of a reverse mortgage as something you get on the home you already own. But if you're 62 or older and planning a move — downsizing to a single-story home, relocating to El Dorado Hills to be closer to family, or right-sizing out of a house that's become too much to maintain — a HECM for Purchase lets you buy your next home with a reverse mortgage from day one, instead of two separate transactions.
You make a one-time down payment and finance the rest with the reverse mortgage. From day one, there is no required monthly mortgage payment on the new home — just as with a traditional reverse mortgage. Many El Dorado Hills-area seniors use proceeds from the sale of their current home to fund the down payment, then move into the new property mortgage-payment-free.
Down payment amounts are estimates only. The percentage required depends on your age and current interest rates, and shifts as HUD updates its tables. Call (925) 287-9697 for a current, precise figure for your specific situation.
Why El Dorado Hills-Area Homeowners Consider a HECM for Purchase
One Closing, Not Two
Instead of buying with a traditional mortgage and refinancing into a reverse mortgage later, you combine both steps — one set of closing costs, one transaction, no interim monthly payment ever made.
Right-Size Without a Monthly Payment
Move to a single-story home, an age-friendly floor plan, or a community closer to family in El Dorado Hills, Folsom, or Roseville — while keeping more of your sale proceeds in savings rather than tied up in the new house.
Preserve Retirement Savings
Rather than paying all-cash for your next home and depleting savings or investments, a HECM for Purchase lets you put down a portion and keep the rest of your assets working for you.
Do You Qualify?
- Same age and residency rules as a standard HECM. At least one borrower must be 62+, and the new home must become your primary residence.
- Down payment comes from your own funds. Typically proceeds from the sale of a prior home, savings, or investments — not from another loan.
- HUD counseling is required, same as with a standard HECM.
- Works on most property types eligible for a standard HECM — single-family homes and FHA-approved condos in El Dorado Hills, Folsom, and Roseville.
Planning a move? Whether you're relocating within El Dorado Hills or coming from out of the area, we can walk you through how much down payment a HECM for Purchase would require for your target price range. Call (925) 287-9697 or take our free quiz.
See What You'd Need Down — FreeHECM for Purchase FAQ — El Dorado Hills
Can I use a reverse mortgage to buy a new home instead of refinancing my current one?
Yes — this is called a HECM for Purchase. You make a down payment and finance the rest with a reverse mortgage, so there's no required monthly mortgage payment on the new home from day one. It's popular with El Dorado Hills-area seniors downsizing or relocating to be closer to family.
How much down payment do I need?
It depends on your age and current interest rates — generally, older borrowers need a smaller down payment relative to the purchase price. These ranges shift as HUD updates its tables, so call (925) 287-9697 for a current, precise figure for your situation.
Where does the down payment come from?
Typically from the proceeds of selling a prior home, or from savings and investments. It cannot come from another loan.
Can I do this if I'm moving from outside the El Dorado Hills area?
Yes. Many of our HECM for Purchase clients are relocating to El Dorado Hills, Folsom, or Roseville to be closer to family. The process works the same regardless of where you're moving from.
Planning a Move? See What You'd Need Down.
Free consultation. No pressure. No obligation. Our Folsom-based specialists can walk through the numbers for your target price range.
(925) 287-9697Mon–Fri 8am–6pm · Evening appointments available
or Take the Free 3-Minute Quiz