2026-10-31 · 5 min read · Lincoln
Can You Use a Reverse Mortgage to Buy in Sun City Lincoln Hills?
Many people picture a reverse mortgage as a way to stay in the house they already own. Fewer know it can also help you buy the next one. For a move to Sun City Lincoln Hills in Lincoln, that can change the math on downsizing.
At Surroundings, Maggie can handle both the purchase and the loan, or you can bring your own lender. Here is how this loan works in plain terms.
What is a HECM for Purchase?
A HECM for Purchase is an FHA-insured reverse mortgage used to buy a new primary residence. The youngest borrower must be at least 62.
You make a down payment from your own money, often from selling your current home, and the reverse mortgage covers the rest. After closing, there is no required monthly mortgage payment. You keep title to the home, and you can make payments if you choose.
What does the buyer still have to pay?
You still pay property taxes, homeowners insurance, HOA dues and upkeep. Missing those can put the loan in default, so they belong in your monthly budget from day one.
In Sun City Lincoln Hills, the association lists standard dues of $188 a month as of January 2026, billed quarterly. The Villas section has higher dues. Many homes also carry a Mello-Roos special tax that varies by parcel, so we pull the tax bill for each home you consider.
Where does the down payment come from?
It has to come from your own funds, not another loan. HUD guidance on HECM for Purchase describes the gap between the price and the loan as cash from the buyer, such as proceeds from selling a prior home or savings.
How large the down payment is depends on your age, the price and current interest rates. Older borrowers can generally borrow more. Your numbers are different from anyone else's, so ask Maggie for yours.
Who can be on the loan?
Everyone on title generally needs to be at least 62 and on the loan. A spouse under 62 may be able to be an eligible non-borrowing spouse, named in the loan documents, with protections to stay in the home if the borrower dies.
The loan amount is based on the age of the youngest borrower or eligible non-borrowing spouse, whichever is younger. Unmarried partners can both be borrowers if each is 62 or older and on title. These rules decide how much the loan can cover, so we sort them out first.
How soon do you have to move in?
HUD's rules for HECM for Purchase require borrowers to occupy the home within 60 days of closing. It must be your primary residence, not a second home.
That timing works well when you are selling a long-time home and moving once. It takes planning when your current home has not sold yet. We line up both sales so the move fits the rule.
Does Sun City Lincoln Hills work for this loan?
Most homes there are single-family homes in a planned community, which is usually the simpler case for FHA. Del Webb built the community from 1999 to 2008, with 6,783 homes, including 80 condominiums.
A condo generally needs FHA approval, or a single-unit approval, before a HECM can be used. The home must also meet FHA property standards, and an appraisal may call for repairs. MetroList shows 155 senior-community sales there from April through September 2026, at a median of $654,100.
See our Sun City Lincoln Hills guide for amenities and costs.
Is a HECM for Purchase better than paying cash?
It is not always better. Paying cash for the Lincoln home means no loan costs and no loan balance growing over time. It also ties up most of your money in the house.
A HECM for Purchase keeps more of your savings in the bank, with no required monthly mortgage payment. In exchange, the loan has real costs. They include an upfront FHA mortgage insurance premium, an annual premium, an origination fee capped by HUD and normal third-party closing costs. Interest is added to the balance each month, so the balance grows.
When the last borrower moves out or passes away, the loan comes due. It is non-recourse, so heirs never owe more than the home is worth. Our article on what happens to a reverse mortgage when a parent dies explains the heirs' options. Every situation is different, so compare both paths with your own numbers.
What are the first steps?
HUD-approved counseling comes first. A counselor who is independent of the lender walks you through the loan, and adult children can join if you want them there. California adds a waiting period of at least 7 days after counseling before a final application.
Next, get a price for your current home and a loan estimate for the new one. Download Reverse Mortgages, Explained Plainly, and see how our downsizing help in Lincoln puts the sale and the purchase on one plan.
A reverse mortgage is one planning tool, not the answer for everyone. Contact us and we will run the numbers both ways for a move to Lincoln.
Maggie B. Hopkins, NMLS #349517. This article is general information, not legal, tax or financial advice. Reverse mortgages are loans with real costs. Borrowers must meet HUD and lender requirements, and all loans are subject to underwriting and approval.