Reverse Mortgage for Purchase Calculator

Estimate how much you can finance with no mortgage payment using an FHA-insured HECM reverse mortgage. No contact information is required. Select your age and the purchase price of the home using the sliders below, then click 'Next' to continue.

How old is the youngest borrower?    More Info
If you're married, only one spouse needs to be at least 62. The younger spouse can qualify as a non-borrowing spouse. If you're not married, the minimum qualifying age is 62.
Borrower Age:
What is the purchase price of the home?
Purchase Price:

Not purchasing a home? Use our regular HECM reverse mortgage calculator.

For informational purposes only. is not a mortgage lender or broker. Please get a formal quote from a qualified professional before making any financial decisions. This calculator reflects the 1/1/2023 lending limit change. This calculator may contain affiliate links through which we may receive compensation at no extra cost to you.

Welcome! You’ve found one of the best (if not the best) reverse mortgage purchase calculators online. Our calculator is updated and current for 2023 based on the latest FHA principal limit and principal limit factor tables. You’ll be able to quickly and easily calculate your down payment for a reverse mortgage purchase. 

This calculator is for the FHA-insured home equity conversion mortgage, or HECM. The HECM is the most common reverse mortgage product on the market today. If you know somebody who recently got a reverse mortgage, it’s likely they got a HECM.

You can use this purchase reverse mortgage calculator at no cost to you with no personal information required. We hope you find it helpful as you decide if a reverse mortgage is right for you.

How To Use This Purchase Reverse Mortgage Calculator

A HECM, or home equity conversion mortgage, is an FHA-insured reverse mortgage program that enables homeowners 62 and older to purchase a home without a mortgage payment.

Congress created the HECM (often pronounced heck-um by industry professionals) as part of the Housing and Community Development Act of 1987. The Act gives the Department of Housing and Urban Development (HUD) and the Federal Housing Administration (FHA) authority to oversee, regulate, and insure the HECM.

The HECM is by far the most popular reverse mortgage product in the United States.

We think you’ll find this reverse mortgage for purchase calculator to be fast and easy to use. Feel free to scan through the instructions below. You’ll learn about what to fill in (and why) as well as key insights about the results once the calculations are complete.

Step 1 – Enter Your Age and the Purchase Price of the Home

The proceeds are calculated as a percentage based on the purchase price and the age of the youngest borrower (or non-borrowing spouse). Enter the age of the youngest borrower (or non-borrowing spouse) and the purchase price in the fields on this page.

  • Age (of youngest borrower) – Enter the age of the youngest borrower (or non-borrowing spouse).
  • Purchase price – The price of the home you wish to purchase.

Click the Next button to continue to Step 2.

Step 2 – Select Your State

Select the state where the property is located. Per HUD/FHA requirements, a HECM reverse mortgage is only for a primary residence that you live in for the majority of the year. No second homes or rental properties are allowed.

  • Select your state – Select the state where the property is located.

Click the Next button to continue to Step 3.

Step 3 – Confirm and Calculate

This page displays the information you’ve already entered. Confirm the information you entered is accurate, then click the Calculate button. The calculation results will display on the next page.

The top of the Calculation Results page displays results for the two primary HECM products: the variable-rate HECM and the fixed-rate HECM. You can switch between the two products using the drop down box near the top of the page.

Near the bottom of the page, you’ll see a breakdown of how much the lender may finance and how much your cash to close could be. Yes, the down payment is much larger than a down payment for a traditional mortgage. Don’t forget that that a reverse mortgage requires no monthly mortgage payment as long as you live in and maintain the home and pay the property taxes, homeowner’s insurance, and HOA dues (if applicable)

You’ll notice that many of the key terms on this page are hyperlinked. The links open in a new browser tab or window and provide additional detail about a given topic.

If you’d like to recalculate using different criteria, simply click the Back button to return to Step 3.