Going into the senior citizen/retirement stages of your life should be exciting.
After all, you’ve put in your time, you’ve raised your family, and you’ve worked very hard to get to this point.
Taking the time to change speed and settle down may be all you’ve wanted to do for quite some time, and now you’ve earned that freedom.
But it’s crucial that you don’t get so distracted by relaxation and freedom that you forget to plan and structure your retirement properly.
Living situations for seniors tend to be the number one concern when it comes to retirement.
As you ease into your golden years, you might realize that the home you’ve lived in for the last decade or so may no longer suit your needs as it once did.
When it’s finally time to take those steps into retirement, investing in a home that complements this stage of your life is essential.
Of course, buying a new home as a senior citizen may feel like a lot to take on, and that’s understandable.
There should be a better way to get into a home that fits your senior-living lifestyle without infringing on your retirement funds or savings, and there is!
How a Reverse Mortgage Loan Can Help You Buy a New Home
A reverse mortgage loan is a smart way for seniors 62 years and older to invest in their retirement future.
Although most don’t realize it, reverse mortgages can do a lot more than support you through a financially difficult time in your life.
In fact, reverse mortgage loans are best used as a preparation tool to help prevent struggles from arising later in retirement.
In the 80s, Home Equity Conversion Mortgages (HECMs) were created as a way for seniors to access a portion of their home’s equity without having to lose their home or increase their monthly expenses.
Since then, this senior citizen loan has evolved to include purchasing a new home.
This type of reverse mortgage loan is now known as a HECM for Purchase loan.
A HECM for Purchase loan allows senior citizens to purchase a new home with a down payment from the sale of their previous home (or their savings) while the HECM for Purchase loan finances the rest of the new house.
HECM for Purchase loans have made investing in retirement living smart, easy, and entirely affordable for thousands of seniors citizens just like you, here’s how-
Benefits of a HECM for Purchase loan
- The loan approval process is easy.
- The funds you receive are tax-free.
- No monthly payments are required of you during the loan.
- You are protected from declines in the housing market.
- You’ll never owe more than your home is worth.
- Your social security is not affected.
- Most of all, you gain a home that is better suited to your senior lifestyle without the hassle or financial strain.
Payment will only be due upon these loan-maturity circumstances:
- The last borrower or non-borrowing spouse leaves home to live elsewhere for more than 12 consecutive months.
- The last borrower or non-borrowing spouse passes away.
- The home is sold.
- The borrower does not comply with their loan’s guidelines and responsibilities listed in the following section.
Borrower’s Responsibilities to Avoid Defaulting on the Loan:
- You must move into the new home within 60 days of the closing.
- The new home must become and remain your primary residence throughout your loan.
- You must keep up with paying your property taxes.
- You have to pay your homeowners insurance.
- You must pay your Homeowners association fees.
- And you are responsible for taking care of any property maintenance/repairs.
Take Control of Your Retirement Now with a HECM for Purchase Loan!
Setting yourself up for retirement has never been better!
With a HECM for Purchase loan, you gain the burden-free financial support you need to purchase a new home that is better suited to your golden-years-lifestyle without taking away from your retirement.
To learn more about purchasing your new home with a reverse mortgage loan, give Key Realtors a call today.
As certified Senior Real Estate Specialists, we have a full understanding of your needs as a senior homeowner retiring.
Our team of professionals is more than happy to walk you through the entire reverse mortgage loan process to ensure that you are making the best decision for this stage in your life.
Key Realtors is here to help!