A year or two ago, you had come to the decision to remain in your home rather than relocating to a nearby retirement community. However, while even the crazy weather variations of this past Indiana winter have not changed your minds about moving, you have been giving thought to owning a second, smaller home someplace south – where you can enjoy sunnier – and warmer – winter seasons.
A review of your finances shows that you do, indeed, have sufficient resources to both make a meaningful down payment on a second property, even to furnish it. An outright purchase, though, would mean overhauling your investment strategies to an uncomfortable extent.
It appears as if a HECM (Home Equity Conversion Mortgage) for Purchase might offer a solution. Backed by the Federal Housing Administration (FHA), a HECM refinance on your current residence could create enough cash proceeds to allow you to purchase your second smaller home down south.
As just one example of the extent to which a HECM for Purchase (H4P) can positively impact the transaction of a second home purchase, given current interest rates, a for a seventy-year old purchaser, the H4P could bring $263,000 towards the purchase of a $750,000 second home!
With the understanding that you must continue to occupy your Indiana property more than six months out of the year, there would be no obligation to strain your budget resources by making mandatory monthly mortgage payments.* (You’d continue to be responsible for property taxes, homeowners insurance, and home maintenance costs.)
If enjoying the “warmth” (in place of the “worst”) of winter seasons to come sounds like the retirement existence you envision for yourselves – you’re in the mindset to explore how a HECM for Purchase can help you transition into the “Snowbird scenario”!
https://mutualreverse.com/david-garrison
*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. 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.org Equal Housing Lender