How to Buy a House With a Reverse Mortgage

••• home sweet home image by David Dorner from

Reverse mortgages are generally associated with refinancing an existing home. However, a reverse mortgage can be used to purchase a home. It is important to note that a reverse mortgage provides only a portion of the home’s value. Therefore, when purchasing a home with a reverse mortgage, the critical inquiry is how much of a down payment is necessary to buy the home in conjunction with a reverse mortgage. Fortunately, the required down payment can be quickly determined with only some basic information and the assistance of a reverse mortgage specialist.

Determine the purchase price of the home from the seller or real estate agent.

Contact a reverse mortgage specialist and provide the specialist with the youngest purchaser’s date of birth and the purchase price.

Ask the reverse mortgage specialist to calculate how much of the home’s value can be accessed with a reverse mortgage. The reverse mortgage specialist will have a specialized calculator to make this determination.

Subtract the amount of money the reverse mortgage can provide from the purchase price to determine how much money must be brought in as a down payment. For example, if the purchase price is $300,000 and the reverse mortgage can provide $180,000, the purchaser must provide a down payment of $120,000 to purchase the house with a reverse mortgage.

Deposit the down payment into escrow.


  • “The Reverse Mortgage Advantage: The Tax-Free, House Rich Way to Retire Wealthy!”; Warren Boroson; 2006
  • “Reverse Mortgage Essentials: Providing Your Financial Independence”; Steve Lawson; 2004

About the Author

John Stevens has been a writer for various websites since 2008. He holds an Associate of Science in administration of justice from Riverside Community College, a Bachelor of Arts in criminal justice from California State University, San Bernardino, and a Juris Doctor from Whittier Law School. Stevens is a lawyer and licensed real-estate broker.

Photo Credits

  • home sweet home image by David Dorner from