What is a reverse mortgage for purchase (H4P)?

It lets a borrower aged 62+ (or 55+ on non-traditional programs) buy a home using reverse mortgage proceeds plus a down payment, with no required monthly principal and interest payment for life.

How is the principal limit determined?

The principal limit is the purchase price multiplied by a Principal Limit Factor (PLF) based on the age of the oldest borrower and the expected interest rate.

Do I still pay anything monthly?

There is no monthly principal and interest payment, but you remain responsible for property taxes, homeowners insurance, and any HOA dues.

Reverse Mortgage · Home Purchase

Reverse Mortgage Home Purchase Loan Calculator

Estimate your purchase price and the equity or cash needed to close with a reverse mortgage home purchase loan — and no payment for life.

Built by Jim Blackburn · NMLS #1072866 · $500M+ closed · 7× Scotsman Guide Top Producer

How many years of age is the oldest borrower?

62 is the minimum for traditional FHA reverse mortgages; 55 for some non-traditional programs.

Equity from Departing Residence

If selling a home, estimate the available equity you'll transfer to the new home.

Purchase Price of New Home

Annual Insurance

Annual Taxes

Monthly HOA

Paid separately, outside the mortgage.

Do you already have a living trust set up to ensure your legacy continues in a way that aligns with your heart?

Yes No

You may consider meeting with one of our legacy partners to explore a smart estate plan.

Summary

Loan

Gap Needed For New Home$200,000

PLF Factor (at 6%)0.453

Maximum Reverse Mortgage (Principal Limit)$226,500Estimate based on borrower age and HUD reverse mortgage guidelines.

UFMIP$3,9641.75% of base loan amount for FHA mortgage insurance.

Final Loan Amount$230,464Base + UFMIP. Subject to HUD county loan limits.

Payment Breakdown

Principal & Interest Payment$0No payment for life on a reverse mortgage.

Monthly Taxes$300

Monthly Insurance$200

HOA (paid separately)$0

Total Monthly Housing Expense$500

Cash to Close

Without Seller Credit$256,500Includes 6% estimated closing costs; varies by state. Not a Loan Estimate.

With 6% Seller Credit$226,500Assumes a 6% seller credit toward closing costs and prepaids.

Monthly Income Target to Qualify$1,000Based on a 50% FHA DTI allowance with compensating factors.

See My Options

Estimates only — not a commitment to lend.

Ready to Take Your First Step?

Skip the guesswork. Take our quick Discovery Quiz to uncover your top financial priorities, so we can guide you toward the wealth-building strategies that fit your life.

Takes just 5 minutes
Tailored results based on your answers
No credit check required

Take the Discovery Quiz

Thinking About a Reverse Mortgage Purchase?

Tell us about your goals and your departing residence, and we'll connect you with the best reverse mortgage options for your scenario—fast.

Only 2 minutes to complete
Quick turnaround
No credit score impact

See My Options

Got a Few Questions First?

Let's talk it through. Book a call and one of our friendly advisors will be in touch to guide you personally.

Schedule a Call

Important Disclaimer

This calculator is for illustrative purposes only and does not constitute financial, legal, or investment advice. Results are based on general assumptions and may not reflect actual performance or eligibility. This is not a loan estimate or approval. Please consult with a licensed mortgage advisor before making financial decisions.

Most Popular

More Paths

Tools & rates

Learn & proof

Reverse Mortgage Home Purchase Loan Calculator

By Jim Blackburn

Ready to Take Your First Step?

Thinking About a Reverse Mortgage Purchase?

Got a Few Questions First?

Important Disclaimer

Related Posts

Download The Stairway Roadmap.