Explore a different way to purchase a home in retirement.

This calculator provides estimates for educational purposes only. It is not a loan application, pre-approval, commitment to lend, or rate lock.

• Principal Limit Factors are pulled from a current public market data source for HECM rates and refresh when our rate tracker updates. Linear interpolation is used for ages between the published anchor ages (62, 65, 70, 75, 80, 85, 90).
• Required cash to close = new home price − (home price × PLF) + estimated HECM closing costs.
• Net cash from sale = current home sale price − mortgage payoff − estimated selling costs (default 8%, adjustable).
• HECM closing costs are estimated at a default 3.5% of new home price (adjustable). Actual costs include FHA UFMIP (2% of MCA), origination fee (capped by FHA), HUD-approved counseling fee, and third-party fees. Many costs can be financed. An ongoing FHA Mortgage Insurance Premium of 0.5% accrues to the loan balance.
• FHA HECM lending limit is set annually by HUD ($1,209,750 as of HUD's most recent annual update — homes appraised above this limit are still eligible, but the principal limit is calculated against the lower of appraised value or the FHA limit).
• Expected rate drives the PLF lookup; variable HECM expected rate = index + lender margin (typically One-Month CMT or SOFR-derived). Rate is set at application, not at the time of running this calculator.
• Co-borrower / non-borrowing spouse: The calculator uses the entered age. If both spouses are on title, use the younger age. Eligible non-borrowing spouse rules can apply if a spouse is under 62 — discuss during the consultation.
• Property & occupancy requirements — H4P is for 1–4 unit primary residences only. The borrower must occupy the property within 60 days of closing and continue to occupy at least 6 months per year. FHA-approved condos, single-family homes, and certain manufactured homes are eligible. Investment properties, second homes, and most co-ops are not eligible.
• Source of down payment funds — Cash to close must come from borrower's own funds (savings, retirement distributions, sale of a prior residence) or documented family gifts. Bridge loans, personal loans, and other temporary financing are not acceptable sources for H4P.
• HUD-approved counseling is required for every HECM borrower prior to application. Counseling is provided by an independent third party at the borrower's expense.
• Borrower obligations continue — you must pay property taxes, homeowners insurance, HOA dues, flood insurance (if applicable), and maintain the property. Failure to meet these can result in loan acceleration and foreclosure.
• No monthly mortgage payments required, but the loan balance grows over time as interest and ongoing MIP accrue. Home equity may decrease as the balance increases.
• Loan maturity — The loan becomes due when the last surviving borrower passes away, sells the home, no longer occupies the home as principal residence for 12+ consecutive months, or fails to meet ongoing obligations. HECM is non-recourse — neither the borrower nor the heirs can ever owe more than the home is worth at sale, even if the balance has grown beyond the property's value.
• Tax treatment — Loan proceeds are generally treated as loan advances, not income, and typically not subject to federal income tax. Interest is generally not deductible until paid (typically at loan settlement). Consult a tax professional for advice specific to your situation.
• Not from HUD or FHA — While HECM is a HUD-insured FHA program, this calculator and the surrounding content are not from HUD or FHA and not approved by HUD or any government agency.

Actual eligibility depends on age verification, appraised value, FHA lending limit, completed HUD counseling, financial assessment, occupancy intent, and current PLF tables at the expected rate set at application. If a HECM doesn't fit your situation, we'll tell you that.