With both of you now in your in your mid-seventies, you’ve decided it’s time to move out of your three-story home with elaborate landscaping, into something more appropriate to what the AARP likes to call “aging in place.” You have been contemplating building a home that is more in keeping with your tastes and needs, rather than buying one and are considering one of the newer communities 45-60 minutes north of your present location.
While you do have liquid funds sufficient to fund a down payment, you’re concerned about the timing of the sale of your present home, not to mention once again taking on the burden of a mortgage.
With an earnest money deposit, many custom homebuilders will finance the building of a new home until it is ready to for you to occupy. At closing, the money owed the builder will come from a combination of the proceeds from the sale of your present home and a HECM (Home Equity Conversion Mortgage) for Purchase, which is a reverse mortgage on the new home.
It might well be that you have money left over from the proceeds of the sale of your present home, which can be used for furnishing the new home or adding to your investment accounts. There will be no obligation to make monthly mortgage payments;* if you should choose to “replenish” the equity in the new home, that money will grow at the same rate as that being charged on the reverse mortgage loan.
A Home Equity Conversion Mortgage for Purchase can smoothen your move from your “good” to your “best and last” home!
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.orgEqual Housing Lender