Reverse Mortgage for Purchase (H4P): Buy a Home at 62+ With No Monthly Payment

For the program name used on FHA disclosures and counseling certificates, see the companion overview on HECM for Purchase. The official framework is published by HUD under the HECM program.

How the H4P Transaction Closes

You shop for a home, make an offer, and apply for a HECM for Purchase loan simultaneously. At closing, your required borrower contribution is wired to escrow and the HECM funds the balance of the purchase price up to your Principal Limit. There is no separate forward mortgage — and no required monthly principal-and-interest payment for as long as you meet loan obligations.

According to HUD documentation, the borrower contribution typically ranges from 40 to 60 percent of the purchase price depending on the youngest borrower's age and current interest rates. A 75-year-old buyer on a $600,000 San Marcos home generally needs less cash at closing than a 62-year-old buyer on the same property.

Who H4P Fits Best

H4P is commonly used by retirees who want to relocate, right-size, or pair home equity with a purchase — including creative cases like a 4-plex purchased with a reverse mortgage for purchase. It also works well for snowbirds buying in Arizona while selling a California home. Compare options in our guide to buying a new home with a reverse mortgage.

California-Specific Considerations

California's high home values mean many purchase prices exceed the $1,249,125 HECM cap. On a $900,000 coastal home the calculation still uses the full appraised value up to the limit. For homes above the cap, proprietary jumbo purchase programs may access additional equity. Prop 13 keeps ongoing property tax obligations manageable for long-term California buyers — an important cash-flow factor when modeling H4P.

Requirements Before You Buy

• HUD-approved reverse mortgage counseling (required before closing)
• Financial assessment and FHA appraisal on the purchase property
• Primary residence occupancy — you must move in within 60 days of closing
• Ongoing property taxes, insurance, and maintenance after closing

Full step-by-step guide: HECM for Purchase Complete Guide 2026.

Plan by State and City

• HECM for Purchase in California (2026)
• HECM for Purchase in Arizona
• Reverse mortgage purchase down payment
• Reverse mortgage purchase in San Diego

Frequently Asked Questions

What is H4P?

H4P is the marketing name for using a HECM reverse mortgage to buy a new primary residence in one closing at age 62 or older.

Can California buyers use H4P?

Yes statewide. Buyers 55 to 61 may use proprietary programs. The 2026 HECM limit is $1,249,125 per HUD.

How is H4P different from a standard reverse mortgage?

Same FHA program — different use case. H4P buys a new home; a standard HECM taps equity in a home you already own.

This material is not from HUD or FHA and has not been approved by HUD or any government agency. All reverse mortgage loans are subject to credit and property approval. CA DRE #01456165, #01450361 · NMLS #307713 · AZ #1022722.