HECM for Purchase (H4P) lets buyers 62+ buy a new home using reverse mortgage proceeds plus a down payment — typically 50–65% down. Bigger price points become reachable, no monthly mortgage payment for the buyer, and the rest of their portfolio stays invested. You earn commission on a bigger sale. Lyon House handles the reverse side end-to-end.
Your 70-year-old client has $700K to put down. Here's the difference between paying cash and using H4P — the part that matters to your buyer.
Down payment percentage scales with buyer age. Age 62-67 ~65% down, age 70-74 ~58% down, age 75-80 ~52% down, age 80+ ~48% down. Illustrative at current expected rate. Note on compensation: Under federal RESPA rules, no referral fees can be exchanged on the mortgage side. The realtor earns a normal real estate commission on the sale as always — nothing extra from Lyon House, ever.
These are the situations where a senior buyer would otherwise be stuck — or settle for less than what they actually want.
Sells for $1.9M net. Uses $650K for a $1.2M H4P purchase. Keeps $1.25M liquid for travel, healthcare, family. No new monthly mortgage payment.
Selling a Bay Area home for $1.5M, moving to OC. H4P lets them buy a $1.1M coastal property with the proceeds — without taking on a new mortgage in retirement.
Wants to stay in Dana Point or Laguna but switch from a 4-bedroom maintenance home to a 2-bedroom single-level. H4P preserves their equity and gets them a nicer property than cash alone would.
Surviving spouse buys a smaller home in the same community using H4P. Keeps friend group intact, no mortgage burden, surplus cash for healthcare or supporting family.
Adult child + parent split the down payment. H4P closes the gap. Parent owns the home, no monthly payment for them, child has peace of mind.
Older renters with savings can use H4P to finally buy. Often impossible with traditional financing at retirement income levels — H4P qualifies on the down payment, not income.
Clean separation, clear regulatory boundary, reliable closings.
Email, phone, or just give them my number when H4P comes up. Could be on a listing tour, an open house follow-up, or a senior buyer who can't quite get to their target price point. RESPA prohibits any referral fee on the mortgage side — this is purely an introduction.
30–60 minute consultation to confirm eligibility, walk through the H4P math for the specific homes they're considering, and answer their questions. If H4P doesn't fit, I tell them honestly — and tell you. No pressure to push a product that's wrong for the situation.
Now they know their real budget. They might shop at a higher price point because H4P expanded their reach, or they might stay where they were and just feel more confident. Either way, the buyer relationship stays with you.
H4P closes in 30–45 days from application. The FHA rules are specific (occupancy date, residual income, primary residence test) — experience with the program matters. 20+ years lending behind every file means fewer surprises.
Senior buyers who have a smooth H4P experience refer their friends in the same community. The compounding referral effect over time is the real reason senior real estate specialization pays off.
“If H4P isn't right for your buyer, I'll say so — and tell you why. The right outcome matters more than any single closing. That's how lasting realtor relationships are built, and it's how I've practiced for two decades.”
Whether you have a specific senior buyer in mind or just want to understand how H4P works in detail, the partner call is the right first step. No commitment required. We'll walk through case fits, the H4P math, and how I communicate with your buyer throughout the transaction.