Reverse Mortgage For Purchase Calculator
This free calculator helps you estimate your maximum home purchase price when buying a home using a reverse mortgage for purchase (HECM or Jumbo Proprietary). It’s designed to help retirees understand how much home they can afford without taking on monthly mortgage payments. Simply enter your age, select your reverse mortgage product type (such as FHA HECM or Proprietary Jumbo), and input your available down payment funds. The calculator will estimate your maximum purchase price, principal limit used, and how much of your cash contribution will go toward the transaction. This tool is especially helpful for older homeowners who want to downsize, relocate, or buy their forever home using the equity from a previous property sale. It shows how reverse mortgage financing can reduce your required down payment while keeping your retirement savings intact.
❓ FAQ Section
What is a Reverse Mortgage for Purchase (HECM for Purchase)?
A HECM for Purchase allows older homeowners to buy a new primary residence using a reverse mortgage instead of traditional financing. It combines the home purchase and reverse mortgage into one transaction, eliminating monthly mortgage payments.
How much of a down payment is required for a reverse mortgage purchase?
Down payment requirements vary based on your age, interest rates, and product type. Generally, buyers contribute 30%–60% of the home’s price, with the remainder covered by the reverse mortgage. Older borrowers typically qualify for a higher loan-to-value ratio, meaning they can put down less.
What is the FHA lending limit for a HECM purchase, and what if my home value exceeds it?
The FHA HECM lending limit for 2025 is $1,209,750, which caps the maximum home value used to calculate your loan amount. If your home’s value exceeds this limit by a wide margin, a Jumbo Proprietary Reverse Mortgage may be available. Jumbo programs allow you to use the full appraised home value, offering higher purchase potential and more flexible terms.
Can I buy any type of home with a reverse mortgage?
You can use a reverse mortgage to purchase a single-family home, approved condo, or certain townhomes as long as it will be your primary residence. Vacation homes and investment properties do not qualify under FHA HECM rules.
Will I ever owe more than my home is worth?
No. FHA-insured reverse mortgages are non-recourse loans, meaning you or your heirs will never owe more than the home’s value when the loan is repaid, even if property values decline.
How do I get a personalized reverse mortgage quote?
After reviewing your estimate, you can request a free, no-obligation consultation with a licensed Reverse Mortgage Advisor to receive a detailed analysis.
Disclaimer: For Educational Purposes Only
The information, tools, and calculators available on The Retirement Dilemma website are provided exclusively for educational and informational purposes. Their goal is to help you understand how a reverse mortgage may fit within your overall retirement strategy. This material should not be considered financial, legal, or tax advice.
All content is developed and reviewed by reverse mortgage professionals with decades of combined experience in mortgage lending, underwriting, and real estate. However, every financial situation is unique. We strongly encourage you to consult with a qualified financial advisor, tax professional, attorney, Reverse Mortgage Advisor, or a HUD-approved housing counselor before making any financial decisions related to reverse mortgages.
To maintain accuracy and reliability, our educational content references well-established and nationally recognized sources, including HUD, CFPB, AARP, and other trusted organizations specializing in retirement and housing.
Our mission is to provide unbiased, transparent, and practical education—empowering you to make informed, confident decisions about your financial future.
