For REALTORS®
H4P: The Phenomenal Purchase Strategy Every REALTOR® Should Know
Help Your 62+ Clients Buy Their Next Home — Without a Required Monthly Mortgage Payment
Many senior homeowners want to move, downsize, relocate closer to family, or buy a home that better fits their lifestyle — but they hesitate because they do not want to drain their savings or take on a traditional monthly mortgage payment.
That is where H4P — HECM for Purchase — can be a powerful solution.
A HECM for Purchase allows eligible buyers age 62 or older to purchase a new primary residence using a reverse mortgage structure. The buyer brings a required down payment, and the HECM helps finance the rest. The borrower must live in the home as their primary residence and remain responsible for property taxes, homeowners insurance, HOA dues if applicable, and home maintenance.
Why REALTORS® Need to Know About H4P
This product can help you unlock more senior buyer opportunities.
Many senior clients are sitting on significant home equity but may feel limited by retirement income, debt-to-income ratios, or concerns about preserving cash. H4P gives them another way to buy — without using all of their proceeds from the sale of their current home.
Common Senior Client Scenarios
| Client Situation | How H4P May Help |
|---|---|
| Wants to downsize | Buy a more manageable home while preserving cash |
| Wants to move closer to family | Purchase the next home without taking on a traditional monthly mortgage payment |
| Wants single-level living | Improve lifestyle, accessibility, and long-term comfort |
| Sold a larger home | Use part of the proceeds toward the new home and keep more funds available |
| Concerned about retirement income | Reduce monthly housing cash-flow pressure |
| Wants a better home than they thought possible | Increase purchasing flexibility compared with paying all cash |
Simple Example
Traditional Thought Process
A senior sells their current home for $500,000 and wants to buy a new home for $350,000.
They may think they need to pay cash for the new home, leaving only $150,000 before expenses.
H4P Strategy
Instead of paying all cash, they may be able to use a portion of the sale proceeds as the required down payment and finance the rest through a HECM for Purchase.
That may allow them to:
- Preserve more cash from the sale of their current home
- Buy the right home for their next stage of life
- Avoid a required monthly principal and interest mortgage payment
- Keep more liquidity for retirement, healthcare, travel, emergencies, or family needs
Key REALTOR® Talking Points
"You may not have to pay all cash."
Many seniors believe their only options are to pay cash or take out a traditional mortgage. H4P creates another option.
"This may help you preserve more of your retirement funds."
Instead of tying up most or all of their proceeds in the next home, the client may be able to keep more money available.
"You can buy the home that fits your lifestyle."
H4P can help seniors purchase a home that better fits their needs: fewer stairs, less maintenance, closer to family, newer construction, or a better community.
"There is no required monthly mortgage payment."
The borrower must still meet loan obligations, including living in the home as their primary residence, paying property taxes, homeowners insurance, HOA dues if applicable, and maintaining the property.
Want to learn more about how H4P can help your clients?
