Reverse mortgages for purchase let retirees buy a new home without monthly mortgage payments. Learn how this option works in today's market and whether it fits your retirement plans. Contact a specialist to explore the details.
Holden Kellerhals, Lending Strategist
NEXA Lending
Phone: (727) 591-5591
Email: [email protected]
NMLS# 2646551
Company NMLS# 1660690
Licensed in: FL, IA
Calculations based on 30-year fixed mortgage. PMI applies when down payment is less than 20%. Bank Statement loans are considered Non-Qualified Mortgage (Non-QM) products. Qualification is based on the review of personal or business bank statements rather than tax returns. Interest rates and down payment requirements for these products may be higher than those of conventional government-backed mortgages (such as FHA, VA, or Fannie Mae/Freddie Mac loans). Not all applicants will qualify. Annual Percentage Rate (APR) is subject to increase after consummation. Advertised terms are based on a loan amounts with a 760 FICO, Loan-to-Value, and 30-year fixed/ARM rate. Monthly payments includes principal and interest only; actual payment will be higher with taxes and insurance and HOA. This is not an offer to enter into an agreement. This is not a commitment to make a loan. Not all customers will qualify. Information, rates and programs are subject to change without prior notice. All products are subject to credit and property approval. All approvals are subject to underwriting guidelines. Not all products are available in all states or for all dollar amounts. Other restrictions and limitations may apply. VA loans subject to individual VA Entitlement amounts and eligibility, qualifying factors such as income and credit standards, and property limits. NEXA Mortgage, LLC is not affiliated with any government agencies. These materials are not from VA, HUD or FHA, and were not approved by VA, HUD or FHA, or any other government agency. Copyright © 2025 NEXA Mortgage, LLC NMLS#1660690. AZMB#0944059. 5559 S Sossaman Rd, Bldg #1 Ste #101, Mesa, AZ 85212, 602-344-9333. NEXA Mortgage, LLC is an Equal Housing Lender. All rights reserved.
Reverse Mortgages Open Doors for Home Purchases
July 3, 2026
Retirees often want to move to a smaller home or a better location without the burden of traditional mortgage payments. A reverse mortgage for purchase provides one way to achieve that goal. This approach combines the purchase of a new property with the benefits of a reverse mortgage in a single transaction. Many seniors find it simplifies their transition into the next phase of life.
The process starts with qualifying for a government-backed reverse mortgage that covers most of the home price. The borrower pays the difference in cash at closing. Lenders evaluate the home value and the applicant's age and credit profile to determine eligibility. Once approved, the new home becomes the primary residence and no monthly principal or interest payments are required. This structure frees up cash that would otherwise go toward a conventional loan.
Homeowners gain flexibility because the loan balance grows over time rather than shrinking with payments. They can stay in the home as long as they meet basic requirements such as paying property taxes and insurance. The option works well for those who have substantial home equity from a previous sale but prefer not to tie up liquid assets. It also avoids the need to qualify based on income in the same way as a forward mortgage.
Buyers considering this route should compare it against other financing methods to see which aligns with long-term plans. Sellers may notice increased interest from older purchasers who use this tool to complete transactions quickly. Market conditions influence how much equity is needed upfront and how the loan terms are structured. Professional guidance helps clarify the trade-offs before moving forward with an offer.
A reverse mortgage for purchase can simplify relocation for retirees who want to avoid ongoing payments. It remains a practical choice when other options feel less suitable.