California is one of the most expensive states in the country to buy a home. But if you are 62 or older, you do not have to choose between the retirement you deserve and the home you actually want. A HECM for Purchase lets you buy a brand-new primary residence with a one-time down payment and no required monthly mortgage payments from day one.
2026 FHA Lending
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Typical Home Value You Can Access
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Reverse Mortgage Specialist
HECM for Purchase, also known as H4P, is a federally insured loan program that allows homeowners aged 62 and older to buy a brand-new primary residence using a reverse mortgage. It is the only program of its kind insured by the FHA and fully regulated by HUD.
With a traditional home purchase, you make a down payment and send a monthly mortgage check to your lender for years or decades. With a HECM for Purchase, you bring a larger one-time down payment to closing and the HECM covers the remaining balance. After that, no monthly mortgage payments are required for as long as you live in the home.
The loan does not come due until you sell the home, permanently move out, or pass away. Your name is on the title from the first day. You own the home completely. A HECM for Purchase is not a workaround or a fallback option. It is a federally regulated financial tool that lets California seniors buy the home they actually want without adding a mortgage payment to their retirement budget.
Protects your transaction and your funds even if the lender goes out of business
You and your heirs will never owe more than the home's final sale price
Required by federal law before any application is submitted to protect your interests
No mortgage payment is required for as long as you live in your new California home
Qualifying for a HECM for Purchase follows guidelines very similar to a standard HECM. Your credit score is rarely the primary deciding factor.
The youngest borrower on the title must be at least 62 years old. Some proprietary programs extend eligibility to age 55 and older.
The home being purchased must become your primary residence within 60 days of closing. Second homes and investment properties do not qualify.
You will typically need between 45 and 65 percent of the purchase price as a down payment. The exact amount depends on your age and current interest rates.
You must demonstrate a clear ability to pay ongoing property taxes, homeowners insurance, and any applicable HOA dues on the new home.
Single-family homes, FHA-approved condos, 2 to 4 unit properties, and manufactured homes on owned land all qualify as long as the property will be your primary residence.
Federal law requires a session with an independent HUD-approved housing counselor before any application is submitted. The session runs approximately 60 to 90 minutes by phone.
California seniors are often sitting on significant equity in a home that no longer fits their lifestyle. A HECM for Purchase turns that equity into a direct path to a better-suited home, with no new monthly mortgage payment attached. Whether you are downsizing from a large family home in Los Angeles, relocating to a quieter city, or moving closer to family in San Diego or the Bay Area, this program gives you options that a conventional mortgage simply cannot match. Down payment funds can come from the sale of your current home, retirement accounts, or other personal assets.
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Eligible CA Homeowners
Counties We Serve
One of the most practical features of a HECM for Purchase is flexibility in how you bring the down payment to closing. You are not locked into one approach. You choose the funding strategy that fits your current financial picture.
Use the proceeds from selling your existing home as the down payment. This is the most common approach and often covers the full required amount at closing.
Funds drawn from a 401(k), IRA, or brokerage account can be applied toward the required down payment. A financial advisor can help you structure the withdrawal efficiently.
In certain cases, properly documented gift funds from family members or proceeds from an inheritance can be used toward the required down payment.
Mix proceeds from a home sale with savings, investment accounts, or other liquid assets to cover the down payment. Many borrowers use more than one source.
Interest does accumulate on the HECM for Purchase balance over time and is added to the total loan amount. But just like a standard HECM, you are never required to write a monthly check. The balance builds quietly in the background while you live in and enjoy your new California home. When the loan comes due, it is settled from the sale of the home, and any equity remaining goes entirely to you or your heirs.
California seniors are often selling homes worth far more than they paid for them decades ago. A HECM for Purchase lets you redirect that equity into a new home in the location and layout you actually want, without taking on a new monthly mortgage payment in retirement.
San Francisco Bay Area
$1.2M – $1.8M+
Los Angeles County
$800K – $1.2M+
San Diego
$850K – $1.1M
Orange County
$900K – $1.3M
Beverly Hills / Malibu / La Jolla
$2M – $5M+
Sacramento
$550K – $700K
Inland Empire
$500K – $650K
Central Valley
$400K – $550K
This is a detail almost no national reverse mortgage company ever brings up. When you purchase a new home in California, the property is typically reassessed at the current market value, which resets your tax base. However, California's Proposition 19 may allow eligible homeowners aged 55 and older to transfer their existing property tax base to a replacement home of equal or lesser value. A HECM for Purchase does not prevent you from applying for Prop 19 relief. Your tax transfer eligibility is separate from the loan itself. We always recommend speaking with a California tax advisor before making any final purchasing decisions.
For California homebuyers 62 and older, the numbers are often more manageable than expected. Most borrowers need to bring between 45% and 65% of the purchase price as a down payment, depending on their age and current interest rates.
| YOUR AGE | HOME VALUE | EST. PROCEEDS |
|---|---|---|
| 62 | $600,000 | $240,000 – $290,000 |
| 70 | $800,000 | $370,000 – $430,000 |
| 75 | $900,000 | $460,000 – $520,000 |
| 80 | $1,000,000 | $570,000 – $630,000 |
These are illustrative estimates only. Your actual down payment depends on current interest rates and a formal appraisal of the property being purchased. Call us at (888) 887-0492 for a personalized calculation based on your target home price.
For California homes priced above the FHA limit
We believe in being completely upfront. A HECM for Purchase is an excellent fit for many California seniors, but like any financial decision, you should understand both the protections and the responsibilities before signing anything.
If your loan balance ever exceeds what your home sells for, you and your heirs owe nothing more than the sale price. The FHA insurance fund covers any shortfall, not your family.
Your name is on the title from the day you close. The lender places a lien on the property, just as any standard mortgage does, but the home belongs to you completely.
Every HECM for Purchase is subject to full federal regulation. The mandatory independent counseling session ensures you understand every term before making any commitment.
Your heirs receive up to 12 months to decide what to do with the property. They can sell it, refinance the balance, or walk away, knowing the FHA covers any gap between the loan balance and the sale price.
California families served
Home equity unlocked
Approval rate
Foreclosures in our history
A HECM for Purchase removes the monthly mortgage payment from your new home. You remain responsible for the same costs that come with owning any California property. Many clients plan ahead for these costs using savings freed up by eliminating their monthly mortgage obligation.
Property taxes (protected at your current low rate under Prop 13)
Homeowners insurance
Basic home maintenance and upkeep
Most people expect this to be slow and complicated. It almost never is. Our average closing time in California is 30 to 45 days from application — often running alongside the standard home purchase timeline.
We review your purchase goals, target home price, expected down payment sources, and every question you have. No pressure, no obligation. We will tell you honestly if a HECM for Purchase is the right fit for your situation.
Federal law requires a session with an independent HUD-approved housing counselor before any application is submitted. This is a third party with no financial stake in your outcome. The session runs 60 to 90 minutes by phone and costs approximately $125 to $200.
We guide you through the loan application and purchase contract paperwork at the same time. You will need proof of identity, income documentation, details on the property being purchased, and documentation of your down payment funds.
An FHA-approved appraiser visits the property you are buying and confirms the current market value. This appraisal establishes your principal limit and verifies the home meets FHA minimum property standards. Cost is typically $400 to $800.
Your complete loan file, including the application, counseling certificate, purchase contract, and appraisal, is reviewed for final approval. We verify your ability to maintain property taxes and insurance on the new home going forward.
You bring your down payment to closing. Documents are signed, often at the property or via mobile notary. Federal law provides a 3-business-day right of rescission. After that period, funds are released to the seller and the home is yours with no monthly mortgage payment required.
Most people assume a HECM for Purchase only makes sense if you already own a home and plan to sell it. That is not the case. The program works equally well for seniors who have liquid savings, inherited assets, or investment accounts they would prefer not to fully liquidate. Any eligible source of down payment funds can work.
HECM for Purchase (H4P) is one of the most underused but genuinely powerful tools available to California seniors. It does not require a flawless credit history. It does not require you to have sold a previous property. It simply requires that you are 62 or older, that the home will be your primary residence, and that you can bring the required down payment to closing.
Minimum Age
62 years old
Down Payment Needed
45–65% of purchase price
Monthly Mortgage Payment
None required
Home Ownership
Title in your name
FHA Insurance
Included
Eligible Properties
Any CA primary residence
Real answers to the questions California homebuyers ask us most, before and after they call.
You have spent decades building equity in California real estate. Now it is time to put that equity to work in the smartest way possible. A HECM for Purchase gives you the home you actually want, in the California city you choose, without adding a mortgage payment to your retirement expenses.
The consultation is free, there is no obligation, and we will never pressure you into a decision that is not right for your situation.
243 S Escondido Blvd Suite 2004
Escondido, CA 92025
(888) 887-0492
Mon to Fri 8 AM to 6 PM
contact@californiareversemortgage.us
