SNOWBIRD WANNABES CAN TAP HOUSING WEALTH
Prior to your retirement (yours three years ago, hers one year later) the two of you had resolved to remain in your home rather than relocating to a nearby retirement community. Since that time, you’ve hired professionals to bring the house itself “up to speed” – (new roof and HAVC, walk in tub), and are satisfied that, barring unexpected health challenges, you’re ready to spend the rest of your lives “back home in Indiana”.
This spring, however, as you’ve watched friends and neighbors return after spending the winter in sunny climes, you’ve begun to ponder becoming “snowbirds”. (You’re considering the purchase of a summer place in the southeast U.S, which would also put you near your daughter and her family).
A recent review of your finances shows that you do have sufficient resources to make a meaningful down payment on a second property, and even to furnish it modestly. An outright purchase, though, would mean overhauling your investment strategies to an uncomfortable extent.
It appears as if a HECM (Home Equity Conversion Mortgage) might offer a solution. Backed by the Federal Housing Administration (FHA), a HECM refinance on your current residence could create enough cash proceeds, in addition to the funds you’d planned to use for the down payment, to enable you to purchase a second, smaller home.
With the understanding that you must continue to occupy your Indiana home for at least six months out of every year, and that you’d continue to be responsible for property taxes, homeowners insurance, and home maintenance costs, there would be no obligation to make monthly mortgage payments* on the HECM loan.)
With your primary residence prepped for “aging in place”, your housing wealth can be key to allowing you to “graduate”, along with your neighbors, to “snowbird” status.
https://mutualreverse.com/david-garrison
Readers, if you’d like to see what you might qualify for with a reverse mortgage in Indiana, or to download your Reverse Mortgage Guide Click Here (and scroll down).
*Borrower must occupy home as primary residence and remain current on property taxes, homeowner’s insurance, the costs of home maintenance, and any HOA fees. **Please consult a tax specialist. David Garrison, NMLS ID 1595194. Mutual of Omaha Mortgage, Inc. dba Mutual of Omaha Reverse Mortgage, NMLS ID 1025894. 3131 Camino Del Rio N 1100, San Diego, CA 92108. Indiana-DFI Mortgage Lending License 43321. Michigan 1st Mortgage Broker/Lender/Servicer Registrant FR0022702. These materials are not from HUD or FHA and the document was not approved by HUD, FHA or any Government Agency. Subject to credit approval. For licensing information, go to: www.nmlsconsumeraccess.orgEqual Housing Lender