Many older buyers assume their housing options are limited to what they can afford in cash—but what if they could purchase a more expensive, more suitable home while keeping more of their assets liquid? That’s the power of H4P.
How HECM for Purchase Increases Buying Power
Traditional financing often limits seniors due to fixed incomes, debt-to-income ratios, or concerns about monthly mortgage payments. H4P changes the game by allowing buyers 62 and older to use a portion of their home equity—without taking on mandatory monthly mortgage payments.*
The Affordability Advantage: More Home for Less Out-of-Pocket
With a traditional home purchase, seniors may feel restricted to a smaller home or less desirable location based on their available cash. H4P allows them to:
- Purchase a higher-value home than they originally thought possible.
- Avoid depleting their retirement savings while still securing their dream home.
- Eliminate monthly principal and interest payments, freeing up income for other retirement expenses.
- Avoid depleting their retirement savings while still securing their dream home.
- Eliminate monthly principal and interest payments, freeing up income for other retirement expenses.
Real-Life Example: A Smarter Move
Imagine a retired couple who sells their longtime home for $400,000. They want to relocate to a single-story home in a 55+ community, but their ideal property is priced at $600,000. Instead of depleting an additional $200,000 from their savings, they can use an H4P loan to cover part of the cost. The result? They move into their dream home while preserving their retirement funds.
Why This Matters for Real Estate Agents
Offer clients more options by expanding their budget without increasing financial stress.
Help buyers afford homes in competitive markets without relying solely on cash.
Close more deals faster by working with buyers who have increased purchasing power.
