How long is too long for a home to sit on the market in Fort Collins?

The current average days on market in Fort Collins is around 74 days for single-family homes. If your home has been active significantly longer without meaningful showing activity or offers, it's a signal that something needs to change — most commonly price, presentation, or both. Homes that sit well past the local average also begin to raise questions in buyers' minds, which makes subsequent showings harder even after a price reduction.

Should I lower my price or pull the listing and relist?

Both can work, and in many cases doing both together is the most effective reset. A price reduction is visible to active buyers and signals that the home has become more competitive. Pulling and relisting resets the days-on-market clock and removes the stigma of a stale listing — but it only works if something has genuinely changed, whether that's better photography, improved condition, or a repriced strategy. Combining a refresh with a relist at an adjusted price often produces the strongest result.

What do buyers in Fort Collins look for most right now?

In the current market, Fort Collins buyers are prioritizing move-in-ready condition, strong listing photography, and competitive pricing relative to comparable homes. With more inventory available than in recent years, buyers can take their time and compare. Homes that are well-prepared and priced to current market data are still moving. Homes that need work or feel overpriced relative to active alternatives are the ones accumulating days on market.

Can I sell my Fort Collins home as-is if it isn't moving?

Yes, and in some situations it makes sense. Selling as-is typically means marketing to buyers who are willing to take on a home in its current condition — often investors or buyers looking for renovation projects — and it usually means accepting less than you'd get with a market-ready listing. Colorado requires sellers to complete the Seller's Property Disclosure (SPD) form honestly regardless of how you're selling. 'As-is' means you won't make repairs, not that you don't have to disclose what you know.

Do I have to pay to relist my home after pulling it?

That depends on the terms of your listing agreement. Most listing agreements run for a set term — commonly 90 to 180 days — and your options around pulling the listing, taking a break, or switching agents are governed by that contract. Review the agreement with your current agent, or have an attorney take a look if anything is unclear.

Using a Reverse Mortgage To Buy a Home When Downsizing

Oct 19

Written By Mollie Murphy

Can You Use a Reverse Mortgage to Buy a Home When Downsizing?

By Mollie Murphy, Employing Broker | October 15, 2026

Quick answer

Can you use a reverse mortgage to buy a home when downsizing?

Yes. If you're 62 or older, a HECM for Purchase (a federally insured reverse mortgage used to buy a home) lets you combine a large down payment, often from the sale of your current home, with reverse mortgage financing to buy your next primary residence. You make no required monthly principal and interest payment, though you still pay property taxes, homeowners insurance, HOA dues, and upkeep. For Northern Colorado downsizers, it can mean buying the single level home you want while keeping more cash in the bank.

Here's a situation I see often. A couple has lived in their Fort Collins home for 25 years. They're ready for a ranch home in Loveland or Windsor with less to maintain. They have strong equity, but they don't want to spend almost all of it on the next house, and they definitely don't want a new monthly mortgage payment in retirement.

That's exactly the problem a HECM for Purchase was designed to solve. Most people have never heard of it, and the ones who have often carry outdated ideas about reverse mortgages. Let's walk through how it really works.

How a HECM for Purchase Works

A Home Equity Conversion Mortgage (HECM) is a reverse mortgage insured by the Federal Housing Administration. The "for Purchase" version lets you buy a new home and take out the reverse mortgage in a single closing, instead of buying with cash and then taking out a reverse mortgage later.

In simple terms:

You bring a sizable down payment. Usually this comes from the sale of your current home.
The reverse mortgage covers the rest of the purchase price.
No required monthly mortgage payment. The loan balance grows over time and is typically repaid when you sell, move out permanently, or pass away.
You own the home. Your name is on title, just like any other purchase.

A simplified example

Current Fort Collins home sells for$650,000

Approximate net after costs and payoff$600,000

New single level home in Loveland$550,000

Estimated down payment with HECM for Purchase~$300,000

Estimated cash kept in reserve~$300,000

Required monthly mortgage payment$0

Illustration only. Your actual down payment depends on the age of the youngest borrower, current interest rates, and the home's price. A HECM lender will give you real figures.

Compare that to buying with cash. Paying $550,000 outright would leave only about $50,000 in reserve. A traditional mortgage would keep more cash available but add a monthly payment. The HECM for Purchase sits in the middle, and for some retirees that's the right fit.

Who Qualifies and What the Rules Are

What is typical for HECM for Purchase requirements:

Age 62 or older. At least one borrower (and in many cases an eligible nonborrowing spouse can be protected as well).
Primary residence. You must move in within 60 days of closing. This doesn't work for second homes or rentals.
HUD approved counseling. Before applying, you'll complete a session with an independent counselor. It's a helpful conversation, not a formality.
Financial assessment. Lenders look at your income and credit to confirm you can keep up with taxes, insurance, and HOA dues.
An eligible property. Single family homes and FHA approved condos typically qualify. New construction needs a certificate of occupancy before closing.
Loan limits. For 2026, the maximum home value HUD will use in the calculation is $1,249,125. You can buy above that price, but the reverse mortgage amount is based on that cap.

The down payment is larger than a typical purchase. Depending on your age and interest rates, it often lands somewhere around 45 to 65 percent of the price. The older the youngest borrower, the less you generally need to put down.

Things to Think Through Before You Choose It

A HECM for Purchase isn't right for everyone. Here's what I want every client to understand:

Your equity decreases over time. Interest and mortgage insurance are added to the balance each month. If leaving the home's full value to your heirs is a priority, weigh that carefully.
Upfront costs are higher. There's an initial FHA mortgage insurance premium (2 percent of the home value, up to the limit), plus lender and closing costs.
You must keep up with the home. Falling behind on property taxes, insurance, or HOA dues can trigger a default.
Heirs have options. When the loan comes due, heirs can sell the home, keep it by paying the loan, or, because it's non-recourse, they typically never owe more than the home is worth.
Some properties don't qualify. Many 55+ communities in Windsor and Timnath are single family patio homes and work well, but condos must be FHA approved. We check this early, before you fall in love with a home.

We find that the families who do best with this loan are the ones who plan to stay put for many years and value monthly cash flow over leaving maximum equity behind.

How It Fits Into a Northern Colorado Downsizing Plan

The real estate side matters just as much as the financing. A few things I coordinate for clients using a HECM for Purchase:

Selling first or buying first. Because the down payment usually comes from your current home, the sale and purchase are often tightly linked. A coordinated closing or a short rent-back keeps you from moving twice.
Writing a strong offer. In today's Northern Colorado market, sellers are more flexible than they were a few years ago, but they still want confidence. It's customary to include a lender letter showing you're qualified, just like any other buyer.
Timeline expectations. HECM loans can take a bit longer to close. I build that into the contract dates from the start.
Choosing the right home. A single level layout, low maintenance yard, and a location close to what matters to you. If you're going to stay a long time, the home needs to work for the long term.

Every situation is different, and the only way to know whether this works for you is to look at real numbers with a HECM specialist and someone who knows this market. I'm glad to connect you with lenders I trust and build out the real estate side of the plan.

Frequently Asked Questions

What is a HECM for Purchase?

A HECM for Purchase is a federally insured reverse mortgage that lets homeowners 62 and older buy a new primary residence using a down payment plus reverse mortgage financing. There's no required monthly principal and interest payment. The loan is typically repaid when the home is sold or the borrower permanently moves out.

How much do you need to put down on a reverse mortgage for purchase?

The down payment often falls around 45 to 65 percent of the purchase price, depending on the age of the youngest borrower and current interest rates. Older borrowers typically need less down. A HECM lender can calculate your exact figure.

Do you still pay property taxes with a reverse mortgage?

Yes. You remain responsible for property taxes, homeowners insurance, HOA dues, and maintenance. Keeping up with these is a condition of the loan, and lenders review your finances upfront to make sure these costs are manageable.

Can you buy a home in a 55+ community with a reverse mortgage?

Often yes. Single family and patio homes in 55+ communities typically qualify. Condos must be FHA approved or receive a single unit approval, so it's important to check eligibility before writing an offer.

What happens to the home when a reverse mortgage borrower passes away?

The loan becomes due. Heirs can sell the home and keep any remaining equity, pay off the loan to keep the home, or sign the home over. Because HECMs are non-recourse, heirs typically won't owe more than the home's value.

If you're downsizing and wondering how to keep more of your equity working for you, a HECM for Purchase is worth a conversation. For more on the selling side, read how to sell first or buy first when downsizing and what to know about capital gains when selling your home. I'm not a lender or financial advisor, so I always recommend talking with a HECM specialist and your tax professional too.

Ready to talk through your specific situation? Call me directly. I respond fastest by phone.

(970) 646-1303

About Mollie Murphy, Employing Broker

PASSION. I have always had a passion for helping people. Born and raised in Palmer Lake, Colorado, I was eager to graduate high school and move to Fort Collins in 2003. After earning my social work degree at Colorado State University I dedicated several years working at a psychiatric hospital. Working as a counselor and supervisor helped me cultivate my strong skills in empathy, communication, and negotiation. Most importantly, I learned how to work calmly in stressful situations. In 2017, I made a career change to real estate, allowing me to continue helping people through big life decisions. My background gave me a distinctive edge in catering to my client's interest, providing diligent and compassionate service at every step of the real estate process. To me, it is the greatest honor being able to serve people in our community with a huge chapter in their lives, such as buying or selling a home. With many years of experience in real estate, continued training and certifications, and my passion for people, I am committed to helping my clients succeed with the greatest outcome possible. I love my job.

Mollie Murphy