HECM for Purchase in Utah
Buy Your Next Home Without a Monthly Mortgage Payment
A HECM for Purchase (H4P) lets Utah homeowners 62 and older buy a new primary residence using a reverse mortgage, combining a down payment with loan proceeds so there's No Monthly Mortgage Payments Required. It's one loan, one closing, and it's often the easiest way for seniors to right-size, move closer to family, or relocate to a home that better fits their needs in retirement, without giving up cash flow to get there.
Justin Bundy (NMLS #933889) has been originating loans since 2012 and specializes exclusively in reverse mortgages, including HECM for Purchase transactions across Utah. He personally guides clients through the entire process, from the first conversation through closing day.
How HECM for Purchase Works
Instead of taking out a traditional mortgage on your new home, you make a one-time down payment (using proceeds from the sale of your current home, savings, or other assets), and the reverse mortgage covers the rest. As long as you live in the home as your primary residence and stay current on property taxes, homeowner's insurance, and HOA dues, No Monthly Mortgage Payments Required.
- Determine your down payment amount. This is based on your age (or your spouse's age, if applicable) and the price of the new home, generally younger buyers put down a larger percentage.
- Get pre-qualified. Justin reviews your situation and gives you a clear picture of your buying power before you start house hunting.
- Find your new home and go under contract. This works for most standard primary residences, including many condos and new construction.
- Complete required HUD counseling. A short, independent counseling session ensures you fully understand how the loan works before moving forward.
- Close on your new home. Funds are combined at closing, and you move in with No Monthly Mortgage Payments Required going forward.
Why Utah Homeowners Choose HECM for Purchase
- No Monthly Mortgage Payments Required on your new home, freeing up cash flow for the rest of retirement
- Right-size without draining savings — buy the home that fits your life now without tying up all your liquid assets in a down payment
- Move closer to family or into a more accessible, single-level home without the burden of an ongoing mortgage payment
- One transaction — buy your next home and set up the reverse mortgage in a single loan and closing, rather than buying with cash and refinancing later
- FHA-insured program with the same consumer protections as a traditional HECM
A Common Scenario
Many clients sell a larger home that no longer fits their needs, whether it's too much upkeep, too many stairs, or simply too far from family, and use a portion of the proceeds as their down payment on a smaller or more accessible home nearby. The rest of their equity stays in savings or investments, and they move into the new home with No Monthly Mortgage Payments Required, all in one transaction.
Frequently Asked Questions
Do I need to be 62 to use a HECM for Purchase?
Yes, at least one borrower on the loan must be 62 or older. If you're purchasing with a spouse under 62, Justin can walk you through how that affects the down payment and loan terms.
What's the 2026 loan limit?
The FHA HECM loan limit for 2026 is $1,249,125, which applies statewide in Utah regardless of your county's typical conforming loan limits.
Can I use this to buy new construction?
In many cases, yes. There are specific requirements around occupancy and certificate of occupancy timing, Justin can confirm whether a specific new-construction property qualifies.
Is HUD counseling required?
Yes, a short counseling session with a HUD-approved, independent counselor is required for every HECM for Purchase transaction, this protects you by ensuring you fully understand the loan before moving forward.
What if I still owe money on my current home?
That's common. Most clients sell their current home first (or simultaneously) and use a portion of the net proceeds as their down payment on the new home.
Thinking about buying your next home without a monthly mortgage payment?
Call Justin Directly: 435-580-2300
