San Diego County Reverse Purchase Mortgage
HECM for Purchase allows San Diego County homeowners age 62 and older to buy a new home with a reverse mortgage. No monthly mortgage payments, downsize or relocate while preserving retirement savings and maintaining cash flow.
Strategic Equity Audit
For San Diego County homeowners age 62+ planning to buy a new home, HECM for Purchase allows you to use proceeds from your current home sale as a down payment while financing the remainder with a reverse mortgage. Calculate your purchasing power and preserve retirement savings.
Get Strategic Equity AuditHECM for Purchase Overview
What It Is
HECM for Purchase (also called H4P or reverse purchase) is an FHA-insured reverse mortgage used to buy a new primary residence with no monthly mortgage payments.
Maximum Loan Amount
Up to $1,249,125 (2026 FHA HECM limit)
Minimum Age
62 years old — all borrowers at closing (an under-62 spouse may qualify as a non-borrowing spouse)
Down Payment Required
The required down payment depends on the age of the youngest borrower, the purchase price, and the interest rate at closing.
No Monthly Payments
No monthly mortgage payments required as long as you live in the home and maintain property taxes, insurance, and upkeep.
Primary Use Cases
Downsizing to a smaller San Diego County home, relocating to be near family, moving to a single-story home for accessibility, or purchasing a retirement property.
Key Benefit
Preserve cash from home sale proceeds for retirement living expenses, healthcare, or legacy planning instead of tying it up in a new home purchase.
How HECM for Purchase Works
Step 1: Determine Purchase Price
Identify the San Diego County home you want to buy (up to $1,249,125 for maximum FHA benefit).
Step 2: Calculate Required Down Payment
Based on your age and current interest rates, the lender determines what percentage you must contribute (typically 40-60%).
Step 3: Apply Proceeds from Current Home Sale
Use equity from your current home sale as the down payment. Any remaining proceeds stay in your pocket.
Step 4: Close on New Home with Reverse Mortgage
The reverse mortgage finances the remaining balance. No monthly payments required. Property taxes, homeowners insurance, and occupancy requirements continue; the first mortgage, where present, must stay current.
Example Transaction:
- New San Diego home purchase price: $800,000
- Borrower age 72, required down payment: 45% = $360,000
- Reverse mortgage finances: $440,000
- Current home sale proceeds: $500,000
- Down payment from proceeds: $360,000
- Cash remaining for retirement: $140,000
Result: New home purchased with no monthly mortgage payments, $140,000 preserved for retirement living expenses.
San Diego County Reverse Purchase Scenarios
Downsizing
Scenario: Sell $1.2M family home in Rancho Bernardo, buy $700K condo in Mission Valley.
Benefit: Eliminate monthly mortgage payments, reduce property taxes and maintenance, preserve $400K+ cash for retirement.
Single-Story Accessibility
Scenario: Sell two-story home, buy single-level ranch for aging in place.
Benefit: Improve mobility and safety, no monthly payments, maintain independence without financial strain.
Relocate to Family
Scenario: Move from out-of-state to San Diego County to be near children/grandchildren.
Benefit: Purchase San Diego home with no monthly payments, preserve retirement savings for healthcare and living expenses.
Climate or Lifestyle Move
Scenario: Move from inland San Diego to coastal community (Carlsbad, Encinitas, Oceanside).
Benefit: Enjoy desired lifestyle without monthly mortgage burden, preserve cash for travel and activities.
HECM for Purchase Requirements
Age
All borrowers must be age 62 or older at closing. An under-62 spouse may qualify as a protected non-borrowing spouse.
Primary Residence
You must occupy the new home as your principal residence, within the timeframe the program requires.
Financial Assessment
Must demonstrate ability to pay property taxes, insurance, and maintenance.
HUD Counseling
Mandatory counseling session with HUD-approved agency before application.
Down Payment Source
Can come from home sale proceeds, savings, gifts, or other liquid assets.
Property Eligibility
Must be FHA-approved property type (single-family home, 2-4 unit with owner-occupied, FHA-approved condo).
Closing Timeline
Typically 30-45 days, similar to traditional purchase mortgage.
Federal Authority & HECM for Purchase Compliance
HECM for Purchase is an FHA-insured product subject to all HUD regulations governing reverse mortgages.
Official Federal Guidelines: For comprehensive information on HECM for Purchase requirements and consumer protections, review the HUD HECM consumer portal.
Mandatory Counseling: All HECM for Purchase borrowers must complete counseling with a HUD-approved agency. Find approved counselors via the HUD counseling agency search.
Industry Ethics: Solve Lending & Realty adheres to the ethical standards established by the National Reverse Mortgage Lenders Association (NRMLA).
San Diego County Property Tax Information: New homeowners are responsible for property taxes on the purchased property. Visit the San Diego County Tax Collector for payment information.
Related San Diego County Reverse Mortgage Pages
San Diego County Reverse Mortgage Specialist
Kiyoshi Inui
Licensed Mortgage Loan Originator – NMLS 1173299
Kiyoshi specializes in HECM for Purchase transactions for San Diego County homeowners age 62+. He provides comprehensive analysis of purchasing power, down payment requirements, and cash preservation strategies to help clients make informed decisions about downsizing or relocating with a reverse mortgage.
Schedule Consultation with Kiyoshi
This page is for educational purposes only and does not provide legal or tax advice.
Equal Housing Opportunity. All loans subject to credit approval.
Solve Lending & Realty | Company NMLS ID: 2013271 | DFPI CFL ID: 60DBO-153595 | DRE ID: 02123993.
How much down payment is required for a HECM for Purchase in San Diego County?
The required down payment for a HECM for Purchase in San Diego County depends on the youngest borrower’s age, current interest rates, and the purchase price relative to the FHA lending limit. Older borrowers generally qualify for a larger loan contribution and therefore a smaller down payment, while younger borrowers contribute more equity. Our team calculates the specific down payment for each San Diego County buyer before any application is submitted, and can compare the HECM for Purchase against proprietary reverse purchase options where appropriate.
Can I use HECM for Purchase to downsize in San Diego County?
HECM for Purchase downsizing strategy in San Diego County allows homeowners age 62 and older to sell larger properties and buy smaller homes with no monthly mortgage payments. Proceeds from current home sales fund required down payments while remaining equity stays liquid for retirement expenses rather than being tied up in real estate. Our team coordinates with HECM purchase lenders to structure San Diego County reverse purchase transactions that preserve retirement savings while eliminating monthly housing debt obligations.