One transaction. Larger-than-usual down payment from your sale proceeds. No required monthly mortgage payment for the rest of your life in the home.
Watch: Purchase with a Reverse Mortgage (HECM for Purchase)
Purchase with a Reverse Mortgage (HECM for Purchase)
Using a HECM for Purchase to buy a new Utah home in retirement.
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.
Illustrative Utah example
Paying $600,000 cash converts $600,000 of liquid assets into walls. HECM for Purchase can keep six figures of that liquid — without a required monthly mortgage payment.
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.
Learn It. Watch It. Download It.
Purchase with a Reverse Mortgage (HECM for Purchase)
Using a HECM for Purchase to buy a new Utah home in retirement.
A concise entry-level overview for Utah homeowners 62+ beginning their research: what a HECM is, who may qualify, how proceeds can be taken, the obligations that continue, and where to go next.
Educational only. Not legal, tax, or financial advice.
Related Resources
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Reverse Mortgage Myths
The most common reverse mortgage myths — and the truth behind each one.
Is a Reverse Mortgage a Bad Idea?
When a reverse mortgage is the wrong tool — and when it's the right one.
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