San Diego · Reverse Mortgages

Reverse Mortgage for Purchase

By Amanda LaRussa · Mortgage Broker, NMLS #2166834 · Licensed in CA, AZ, TX

Buy your next home in retirement without a required monthly mortgage payment. The HECM for Purchase (H4P) combines a down payment with reverse mortgage proceeds — a strategy many San Diego homeowners 62+ use to downsize on their terms.

What is a HECM for Purchase?

A HECM for Purchase (H4P) lets homeowners 62 and older buy a new primary residence using a reverse mortgage — combining a down payment with loan proceeds so there is no required monthly principal and interest payment on the new home.

It is a popular option for San Diego retirees who want to downsize: move closer to family, simplify maintenance, or relocate to a one-story home — without tying up all their liquid assets in a cash purchase.

How the purchase process works

  • Get pre-qualified — we estimate your down payment requirement and buying power
  • Complete HUD-approved reverse mortgage counseling
  • Shop for your new primary residence with your real estate agent
  • Make an offer and close — your down payment plus H4P proceeds fund the purchase
  • Move in with no required monthly mortgage payment

Down payment requirements

The down payment depends on the purchase price, your age, current interest rates, and the HECM lending limit. Younger borrowers and higher-priced homes generally require a larger down payment. We provide a personalized estimate before you start house hunting.

Who is a good fit?

  • Homeowners 62+ who want to relocate within San Diego County or elsewhere
  • Couples downsizing from a larger family home to a smaller retirement home
  • Buyers who want to preserve investment assets rather than pay all cash
  • Anyone who wants to understand H4P alongside a traditional purchase loan

Important considerations

The new home must become your primary residence. You must continue paying property taxes, insurance, and maintenance. Closing costs apply, similar to a standard reverse mortgage. We walk through every number before you commit.

Can I use a reverse mortgage to buy a home in San Diego?
Yes. The HECM for Purchase program is designed for buyers 62+ purchasing a new primary residence. It is available throughout San Diego County and nationwide for FHA-eligible properties.
How much of a down payment will I need for a HECM for Purchase?
It depends on three things: the age of the youngest borrower (or eligible spouse), current interest rates, and the price of the home. The older you are, the more the loan can cover and the less you put down. For 2026, the FHA lending limit for HECM loans is $1,249,125. I give you a personalized estimate before you start house hunting so there are no surprises.
Do I need to sell my current home first?
Not necessarily. Some buyers sell first and use the proceeds as the down payment. Others use savings or other assets. We map out the order that fits your timeline.
Will I still own my home with a HECM for Purchase?
Yes. The home is in your name, just like any other purchase. The reverse mortgage is a loan against the home, not a transfer of ownership.
Do I have to make monthly payments?
There is no required monthly mortgage payment. You can make voluntary payments if you want to. You do still need to live in the home as your primary residence, pay property taxes and homeowners insurance (and HOA dues, if any), and keep the home in good repair.
What happens to the home when I pass away or move out?
The loan becomes due when the last borrower permanently leaves the home. Your heirs can sell the home and keep any equity left over, or keep the home by paying off the loan. A HECM is non-recourse, which means neither you nor your heirs will ever owe more than the home is worth, even if the loan balance grows larger than the home's value.
What if my spouse is younger than 62?
You may still qualify. The down payment is based on the younger spouse's age, so it may be higher. An eligible non-borrowing spouse can generally stay in the home after the borrowing spouse passes away, as long as program requirements continue to be met.
Can I keep my low property tax when I move?
Often, yes. California's Prop 19 lets homeowners 55 and older transfer their property tax base to a replacement home anywhere in the state, up to three times, if they buy within two years of selling. If the new home costs more, the difference is added to your tax value. You must file a claim with the county assessor.
What types of homes qualify?
Single-family homes, FHA-approved condominiums, and 2–4 unit properties where you live in one unit may qualify. The home must meet FHA property standards and be your primary residence.

Want to talk through your situation?

Schedule a conversation with Amanda LaRussa, NMLS #2166834 — no pressure, just clear answers.

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