FHA Financing For Seniors
Purchase a New Home Without Mortgage Payments
Real estate professionals that focus on the housing needs of seniors in their community are offering special financing to assist seniors that may not qualify for normal mortgage financing. Many seniors have lots of home equity in their present homes and would be able to make a large down payment on a more suitable primary residence but fail to qualify because their income is too low.
The solution for some is the use of FHA reverse mortgage financing which may be used to purchase a new home. The actual name of this financing is the Home Equity Conversion Mortgage. The seniors that can no longer handle the stairs or do not want to be faced with the cost of maintenance of their present home often need to find a more suitable home as their primary residence. Others would like to more to a location closer to family members.
The approach is basically simple. Sell the old home and use the equity to purchase a new home. Real estate agents should love the opportunity to assist seniors and also earn commissions on two transactions. Since a reverse mortgage has no monthly payments, the product can be a lifeline for those seniors that have a limited income. There are no income or credit requirements. The new loan is based on the age of the purchasers and the appraised value of the property.
Seniors should be very careful when selecting a reverse mortgage option. They will still be obligated to pay real estate taxes, insurance, HOA fees and the cost of maintenance. The benefit is that they will not be faced with mortgage payments while they live in the home. To reduce the costs of home maintenance, many opt to purchase a new home rather than a resale property. The reduction in monthly obligations can lead to a better quality of life for the seniors.
Holiday Wreath, Kentlands IMG_2756
Photographs by Roy Kelley. Canon PowerShot G11 camera.
Roy and Dolores Kelley Photographs
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