This "Senior Friendly Home" is now available for a senior to buy without having to pay all cash and still avoid making any payments. I've done the math for someone purchasing this beautiful 3 bedroom, 2 bath house in the wonderful Shadowridge community. It is currently listed for $499,000.
I've calculated how much money would be required to make the purchase using the FHA Reverse Mortgage for Home Purchase Program.
At age 65, the senior would need approximately $219,600 (44%) down and make zero monthly payments.
At age 70, the senior would need approximately $201,600 (40%) down and make zero monthly payments.
At age 75, the senior would need approximately $182,700 (37%) down and make zero monthly payments.
At age 80, the senior would need approximately $162,700 (33%) down and make zero monthly payments.
The current interest rate is fixed at 5.49% and the Government tacks on 0.5% per annum for the Mortgage Insurance Premium. It is interesting to me that seniors ofttime feel that they have to leave Southern California where they want to live to move to someplace far less desireable but more affordable. When you are not making a mortgage payment by using a Reverse Mortgage for Home Purchase, it is possible to continue to live right here!
You can find out more about how Reverse Mortgages work and do a calculation on your own by visiting my web site @ www.homeloans.com/ken-keranen
To find out more about this home, go to http://prudentialcaliforniare.com/agent/sandiego/patandlaura/
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