#89 A reverse mortgage can finance retirement living right at home

#89 A reverse mortgage can finance retirement living right at home

#89 A reverse mortgage can finance retirement living right at home

READY TO RETIRE IN A FIRST HOME …

June 21st, 2022

The two of you have always done things just a little bit differently. While most of your friends have owned homes, with some now relocating to retirement communities, you’ve always rented, moving from place to place to accommodate various long-term corporate consulting assignments. Now, as you’re preparing to retire (you’re 67 and 68 years old), you’re planning to settle “back home in Indiana”, ready to purchase a suburban home where you can putter in the garden, pursue hobbies, and host parties. You do not have children, but there are nieces and nephews whom you’d enjoy having visit.

You’ve saved enough over the years to finance a one-time cash purchase, but probably not enough to do the remodeling and adaptations you envision. In any event, you’re not comfortable cashing in retirement plan dollars, so a mortgage will need to be considered. And, while you had hoped to put work-related travel behind you, it’s reassuring to know that if needed, you can accept certain consulting assignments if costs mount up.

Just as you seem to have done things “in reverse” as compared with your friends, moving “in” to retire instead of “moving out”, you might consider a reverse mortgage to finance the purchase of your “retirement home.” You’d make a down payment (perhaps 50-60% of the purchase price), using the HECM- for- purchase to finance the closing costs and the remainder of the price. What might prove particularly advantageous is that you would not be obligated (although you might choose to) make mortgage payments, freeing up dollars to gradually improve the property to your liking.

You’ve always been comfortable doing things “differently”, and as retirees, you can now take advantage of a different way of financing a first home. 

Lion_Icon Wondering how many of your neighbors have a HECM or HECM for Purchase loan?
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