Older adults favor the Hecm for purchase to achieve their retirement goals. Many agree the style of living, ease of maintenance, and closeness to family are fundamental standards for older adults who prefer a Home Equity Conversion Mortgage for Purchase Loan(HECM).
Christina Harmes, in San Diego, affirmed she has clients looking to upsize, downsize, and relocate to the city or the country. Nearly all of them have one shared requirement. “ I was looking for the common thread, and it seems to be family,” she stated. Giving examples of borrowers seeking to be closer to their family — or even looking for homes where their aging parents can live with them.
Our populations are living longer. Older adults of today are healthier and seemingly more youthful than the seniors of past generations. According to John Leer — a reverse mortgage officer in Chanhassen, MN. “Many seniors are different from the seniors 13 or 14 years ago….They might be moving to Florida or closer to friends and family.”
Right-Sizing
Tim Linger, a broker in Orlando, FL., stated, “When it comes to Florida, it’s all about purchasing a retirement home.” “It’s not about upsizing or downsizing. It’s about right-sizing and lifestyle, which might be moving near a pool or golf course.”
In fact, appropriate-sized houses that appear on many older adults’ wish lists are newer with less upkeep responsibility. Analysts acknowledge these growing trends. Additionally, single-level homes with low maintenance, for example, maintain the lawn or shovel driveways. These statements echo the need for older adults not to need to deal with the headache of specific maintenance issues.
When possible, borrowers prefer a HECM for Purchase over a regular mortgage. Furthermore, the reason why typically boils down to less financial stress and more cash flow. These non-traditional mortgages allow borrowers to buy a property with only half down. Plus, no mortgage payments, might be particularly enticing to retirees.
“When we present the option with no mortgage payments, you can see the relief wash over them,” Harmes stated. The borrowers and their financial advisors are often not knowledgeable about this option.
I encourage you to call me to discuss your or your client’s case. As a Bar Association, PFAC, Chamber of Commerce, AFCPE, NRMLA, and FPA members, we adhere to rigorous ethical standards.