Equal Housing Lender
Fairway NMLS #2289
Ken Powell NMLS #2656628
Every agent in Southern Maryland and Prince George's County has met them: the couple who wants to right-size but refuses to take on a mortgage payment, and cannot quite stomach paying all cash. The HECM for Purchase (H4P) loan exists for exactly that client, and most agents have never had a lender walk them through it. Ken is a Fairway-certified reverse mortgage loan officer and a former Realtor with $22 million in closed sales, and he built this page for you.
Buyers 62+ bring approximately 45 to 70 percent of the purchase price to closing, usually from selling their previous home, and the H4P loan funds the rest. No monthly mortgage payment is required afterward; the buyer pays taxes, insurance, and upkeep.
The client who was shopping at $300,000 all-cash can often shop meaningfully higher with an H4P, without adding a payment, because they're financing a portion rather than depleting all their liquidity. That changes which of your listings they can buy.
At closing the seller receives the full price like any financed transaction. The differences are procedural: HUD counseling before application, an FHA appraisal, and a 60-day occupancy expectation, all of which Ken builds into the contract dates up front.
Like a standard HECM, the H4P loan is non-recourse and FHA-insured, and once established it behaves the same as any other HECM: the buyer owns the home and remains on title, and the loan becomes due and payable when the home is no longer the borrower's principal residence, typically when they move out permanently or pass away. The practical difference is that the equity used to qualify comes from the new purchase's down payment rather than from years of paydown on an existing mortgage. A client selling a paid-off $500,000 home, for example, can often apply a portion of those proceeds toward a new home in the $600,000 to $900,000 range (age-dependent) without taking on a required monthly payment, keeping the rest of their sale proceeds liquid for retirement rather than locked into the new house.
At least one buyer must be 62 or older and the home becomes their principal residence, generally occupied within 60 days. Eligible properties include single-family homes, two-to-four unit properties where the buyer occupies one unit, FHA-approved condos (or condos that qualify for single-unit approval), modular homes, and qualifying manufactured homes. Ken screens the property early so no one falls in love with a home the program cannot finance. The down payment must come from documented, allowable sources, most often prior sale proceeds.
Timeline runs like an FHA purchase with one added front-end step, the HUD-approved counseling session, which Ken gets scheduled before the clock matters.
He runs the exact down payment figure for the client's age and target price before they shop, joins family conversations when adult children have questions, keeps you updated at every milestone, and closes on the contract date. He has sat on your side of the table for over a decade, so he manages the transaction the way you would want a lender to.
Both sides benefit: listing agents can market 55+ friendly homes to a wider buyer pool, and buyer agents can revive the "we will just stay put" client who went quiet.
Want the consumer-facing explanation to share with clients? Point them to the HECM for Purchase page.
Typically around 45 to 70 percent of the purchase price, depending on the youngest borrower's age (or eligible non-borrowing spouse's age, if applicable), current interest rates, and the lesser of the home's appraised value or purchase price. Older buyers generally need to bring a smaller percentage down. There is no required monthly principal and interest mortgage payment afterward; the buyer still pays property taxes, insurance, and maintenance.
No. The seller receives the full purchase price at closing just as in any financed sale. The differences are on the buyer's side of the transaction: a HUD-approved counseling session before application, an FHA appraisal, and typically a requirement that the buyer occupy the home within 60 days of closing.
Single-family residences, two-to-four unit properties where the buyer will occupy one unit, condos in an FHA-approved project (or that qualify for single-unit approval), modular homes, and manufactured homes that meet FHA requirements. Ken screens a property early in the search so a buyer doesn't fall for a home the program can't finance.
Yes, and it's the most common funding source. The buyer typically sells their current home first (or simultaneously) and brings a portion of those proceeds to the new purchase as the required down payment, with the H4P loan funding the remainder.
An all-cash buyer ties up most or all of their liquidity in the new home. An H4P buyer brings roughly half (or less, depending on age) and keeps the rest of their proceeds liquid and invested, while still having no required monthly principal and interest mortgage payment on the new home. For a buyer who wants to preserve savings for retirement rather than lock it all into real estate, H4P often changes what price range they can comfortably consider.
It runs on a similar timeline to a standard FHA purchase, with one added front-end step: the HUD-approved counseling session, which must happen before the loan application. Ken gets that scheduled immediately once a buyer is serious, so it doesn't become the thing holding up a contract date.
The branded, printable version of this material, covering how H4P operates, client and agent benefits, comparisons with cash and traditional financing, eligibility, and the questions clients ask. Ken sends it to verified real estate professionals directly, and can prepare co-branded versions for agents he partners with, so your clients see your name alongside the resource.
Ask about co-branding when you request it, and if you would like, Ken will also present a lunch-and-learn on H4P for your office in Charles, Calvert, St. Mary's, or Prince George's County.
This guidebook is distributed to verified real estate professionals directly rather than posted publicly. Submit your professional details and Ken will send it to your business email, usually the same business day.
Fairway Independent Mortgage Corporation, National Recognition
These are national recognitions earned by Fairway Independent Mortgage Corporation (NMLS #2289), Ken's lender, not an individual award given to Ken Powell. Source: fairwayreverse.com.
Send Ken the scenario: ages, likely sale proceeds, and target price range. He will return the H4P math you can put in front of your client, usually the same business day.