Start your reverse purchase mortgage off right by understanding how to write an offer when utilizing the HECM loan and learn the unique features of the reverse mortgage purchase loan, These guidelines reflect HECM purchase in California and Nevada.

 HECM Reverse Mortgage Purchase Guide

By Maggie O'Connell

Homebuyers at least 62 years old can purchase a home
without theburden of monthly mortgage payments
with the reverse mortgage purchase loan.

Buy more home for your money 
and keep more of your money in your pocket!

This guide will provide the information to do it right the first time!  

  1. You can  live in your home without making a monthly mortgage payment. 
  2. You can never owe more than the value of the home.
  3. Relocate to a home more suitable for your retirement.
  4. Reverse Mortgage proceeds are not taxable - why take funds from investments?
  5. Property remains in your name or your living trust.
  6. It's easier to qualify because no mortgage payments are required.

Advantages of Reverse Mortgages for Purchase 

Eligible HECM properties include: Single Family Residences, FHA Approved Condos (we'll check condo approval for you), Townhouses and some Manufactured Homes.

If the home is newly constructed it must have a Certificate of Occupancy issued prior to starting the reverse purchase transaction.

Home must be occupied within 60 days of close of escrow.

We fund #reversemortgagepurchase in all 50 states!

Types of Properties Eligible for HECM Reverse Purchase Loan

Reverse Mortgage Counseling is required

prior to Opening Escrow!!!


All borrowers and POA’s must receive HUD Reverse Mortgage Counseling
either in person or over the phone and provide the
signed counseling certificate prior to opening escrow. 

Reverse Mortgage Counseling

1. Fully Executed Sales Contract (Certified copy,executed by all parties: buyers, sellers, realtors)

2. FHA Real Estate Certification 

3. FHA Amendatory Clause 

4. Property Condition Disclosure 

5. Any inspections that are included in the contract must be provided to the lender. 

Items Needed With The Purchase Contract

The seller must pay for all repairs that affect the soundness and security of the property or threaten the health and safety of the homeowner.   Required repairs are those called out in the FHA appraisal,  home inspection, termite inspection or any inspections called out in the contract.

There should be language in the purchase contract indicating Seller is responsible for completing and paying for any repairs prior to closing. 

Repairs and the Reverse Purchase Mortgage

Seller Concessions or down payment assistance is NOT allowed.

Seller is restricted from paying all fees except transfer tax and prorated costs. 

In some cases escrow may be split between buyer and seller but check with us first. 

A 30 day escrow is acceptable if using an escrow company specializing in reverse mortgages .

Down Payments for reverse mortgages are larger than conventional mortgages because there must be equity available for interest to accrue. The reverse mortgage does not require monthly payments and the loan balance is due and paid back when the homeowner leaves the home permanently.   


Let me know if you would like an estimate on the down

payment requirements and other details:


What is the Down Payment Required for a HECM Purchase?

Verification of Money Sources for Down Payment Using HECM for Purchase

 If down payment is from a bank or investment account, a verification of deposit along with original statements that cover the most recent 3 month period are required on all accounts where funds will be drawn. This is also required for the ernest money deposit.

If a gift is being used, a gift letter and evidence of the donor’s ability to provide the gift as well as evidence that funds have been transferred into the borrower’s account or a certified check or wire transfer to escrow account is required.

 If funds are coming from the sale of an existing property the Final HUD-1 settlement statement from that transaction will need to be provided along with a copy of the cashiers or certified check showing borrowers name or wire transfer showing settlement agent as sender and borrower as receiver.


Have a Fully Executed Purchase Agreement?  Time for the Application.

Your escrow is opened and the clock is ticking! We will overnight a HECM application package to you and have it picked upat your door when completed.  

Documentation Required for HECM Reverse Purchase Application:

1. Original, signed and dated HECM counseling certificate
2. Copy of social security card or Medicare card 
3. Drivers license or State issued ID card for proof of age
4. Trust Agreement if property is to be held in trust
5. New Homeowners Insurance Policy (Flood Policy if needed)

Don't take chances with your HECM purchase transaction. Use a reverse mortgage originator that is experienced in these unique transactions.  


NMLS # 279499
 800-684-9438 Fax: 866-279-9444 email:

Maggie O'Connell

(800) 684-9438