Can a Reverse Mortgage Help Me “Right Size” or Purchase My Dream Home?

Yes, a reverse mortgage—specifically a Home Equity Conversion Mortgage (HECM) for Purchase—can be a smart and powerful tool to help you right size or even buy your dream home in retirement.

Many homeowners in or near retirement find that their current home no longer fits their lifestyle. Maybe it feels too large or difficult to maintain, or maybe you’re looking to relocate to be closer to family, enjoy better weather, or settle into a more retirement-friendly community. A HECM for Purchase allows you to make that move without taking on a monthly mortgage payment.

Here’s how it works:

If you’re 62 or older, you can use the proceeds from selling your current home (or other savings) as a down payment, and then finance the remaining cost of the new home with a reverse mortgage. The key benefit is that you won’t have to make monthly mortgage payments—you just need to continue paying property taxes, homeowners insurance, and maintain the home as your primary residence.

With this strategy, you can:

• “Right size” into a home that better suits your physical, emotional, or financial needs—such as a single-level home, a property with lower upkeep, or one located near loved ones.

• Stretch your home buying power—potentially allowing you to afford a newer or more updated home than you could with cash alone.

• Preserve more of your savings by not tying up all the proceeds from your current home, giving you more financial flexibility in retirement.

• Enhance your quality of life by choosing a home and community that better align with your goals, whether that’s being closer to grandchildren, enjoying warmer weather, or simply living somewhere you’ve always dreamed of.

In short, a reverse mortgage for purchase lets you transition into the next chapter of life on your own terms—without the stress of monthly mortgage payments and with the freedom to live where you truly want.

Learn more about eligibility requirements for a reverse mortgage, situations where a reverse mortgage is best used, and common myths around reverse mortgage that we debunk with facts