Is a Reverse Mortgage a Smart Move When Purchasing a Home?
Asking if a reverse mortgage is a smart move is not a dumb question if you’re 62 or older and purchasing ahome because a reverse mortgage may be a smarter choice than paying cash or getting a traditional mortgage! It could be the difference between a retirement that stays on track and one that quietly runs out of room.
The Clients I Worry About Most: Cash Buyers
I’ve spent my career in New Hampshire, and I see the same pattern repeatedly: buyers who plan to pay 100% cash for their next home because they want to be debt-free. I understand that instinct. But paying all cash can lock up your liquidity where a reverse mortgage, especially one with a growing line of credit, can create more liquidity for you later on when you need it more.
Before you write that check, let’s look at what paying cash actually costs you.
The Tool You Must Consider
A Reverse Mortgage for Purchase lets buyers 62 and older make a significant down payment while the loan covers the rest, with no required monthly mortgage payment (though you remain responsible for property taxes, homeowners insurance, and maintenance). Your portfolio stays intact. Your cash stays liquid. And your financial advisor can help you put it all to work.
There is an FHA-insured reverse mortgage for purchase called an H4P (HECM for Purchase). Think of it as a specialized tool designed specifically for your next home buy. There are also proprietary reverse mortgages available from national companies like Mutual of Omaha, Finance of America, and Longbridge. As an independent mortgage broker, I can help you explore all of these options to find the best fit.
The Three People You Want on Your Team
There’s a “triangle of trust” in every successful home purchase. For buyers over 62, a great outcome usually involves three professionals working together:
- An SRES-designated REALTOR® who understands senior transitions.
- A Financial Advisor who sees the whole retirement picture.
- A Lender who knows the reverse mortgage products inside and out.
If your financial advisor is skeptical of reverse mortgages, it may be because they learned about an older version of the product—before major FHA consumer protections were added. I’d welcome a conversation with them directly. And if you don’t have a financial advisor yet, I can refer you to one who understands this product the way I do.
Why Work With Renee Duval?
I’m Renee Duval and I aim to be the best reverse mortgage loan officer in New Hampshire. As an independent broker focused exclusively on NH, I’m not tied to one lender’s products or rates—which means better terms and more equity staying in your pocket.
Ready to see the numbers? Before you get a reverse mortgage from anyone else, click here to request a quote comparison. You’ve earned that equity. You should keep as much of it as possible.