How much do I need to put down?

Typically 50–65% of the new home's purchase price, depending on the age of the youngest borrower and current expected interest rates. The HECM finances the remainder.

Is there a monthly mortgage payment?

No required principal-and-interest payment. You remain responsible for property taxes, homeowners insurance, HOA dues, and basic maintenance.

Why use HECM for Purchase instead of paying cash?

It preserves liquidity. Many Utah retirees who could pay cash for a St. George downsize choose HECM for Purchase to keep $200k–$400k invested rather than locked in walls.

Can I buy new construction?

Yes, once the certificate of occupancy is issued. Utah is full of qualifying new-construction options in Washington County, Utah County, and beyond.

What property types qualify?

Single-family, FHA-approved condos, owner-occupied 2–4 unit, and HUD-eligible manufactured homes built after June 15, 1976.

Can I use gift funds for the down payment?

Gift funds are limited under HECM for Purchase rules — most of the down payment must come from your own sourced and seasoned funds (commonly proceeds from selling a prior home).

HECM for Purchase in Utah | Buy a Home with a Reverse Mortgage

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By Tres Miller · Mortgage Lender · NMLS #217768

Reviewed June 22, 2026 · 25+ years lending in Utah

The basic structure

HECM for Purchase combines a HECM reverse mortgage with the purchase of a new primary residence in one closing. You contribute a large down payment from your own funds (typically the proceeds of selling your previous home), and the HECM finances the rest. No monthly mortgage payment is required while you occupy the new home as your primary residence.

Who it fits best in Utah

Downsizers selling a paid-off or low-mortgage home along the Wasatch Front and relocating to St. George, Hurricane, or Washington County.
Snowbirds making a Utah home their primary residence in retirement.
Retirees moving closer to adult children in Utah County or Salt Lake County.
Couples right-sizing into a single-level home for accessibility.

The numbers, conceptually

On a hypothetical $600,000 Utah purchase with a 65-year-old buyer, the down payment might be roughly $360,000 with the HECM financing the balance. Exact amounts depend on the age of the youngest borrower, the current expected interest rate, and HUD's lending limit. Tres provides a written, age-specific quote — never a generic estimate.

Why retirees choose it over paying cash

The most common reason is liquidity preservation. Paying $600,000 cash converts $600,000 of liquid assets into walls. HECM for Purchase keeps roughly $240,000 of that available for investments, emergencies, healthcare, or a standby HECM line of credit — without creating a required monthly mortgage payment.

The honest tradeoffs

Upfront FHA mortgage insurance is real money. If you plan to live in the new home only a few years, HECM for Purchase rarely pencils. The strategy works best when the new home is intended as the long-term primary residence.