A persistent creative home search team is invaluable when looking for a home closer to family in retirement.
Sharon faces some health issues. That makes it harder to live so far from family. While the rural community she lives in is lovely and she is very happy there, she recognizes it is getting harder to get places. Getting to doctor appointments after a recent injury is a big reality check. Since she is very close to a niece who lives in the city, they have decided together that having her closer would benefit them BOTH! Sharon can participate with some of the childcare her niece needs and will have help of her own that isn’t a 3 hour drive away! Now, a persistent, creative home search has begun!
Fast forward to more than a year of home sale preparation, sale and finally the search for a new home. It was challenging, as many face in current market conditions, but here’s what made the difference ~~ Sharon’s unflagging spirit, and an experienced real estate team (realtor and lender – that’s us by the way!) And guess what? Perseverance paid off.
How long would you search for the perfect retirement home?
The Financial Challenge:
Sharon had specific needs and a home to sell first. A garage attached to the house is important, as bringing groceries in a long distance isn’t appealing. And, most essential is one level living. Her second knee replacement surgery isn’t scheduled yet, but stairs aren’t an option.
Social security is her income. Because of this, qualifying for a home purchase with a conventional mortgage didn’t work due to the required monthly principal and interest payments and higher home values in the city. However, Sharon would have a large down payment, proceeds of the sale of her current country home.
Sharon was introduced to Kim Dodge through her realtor, who knew Kim after attending her continuing education class about home financing options in retirement. After introductions, Kim and Sharon discussed options. An FHA insured Reverse Mortgage Purchase Loan was the right fit for her goals, income and assets. As a senior age 62+ with limited income, she can qualify more easily for a reverse mortgage home loan using her social security income, versus a conventional loan.
A Reverse Mortgage for Purchasing a Home
Since an initial purchase fell through due to issues on the sale of her current home, it was time to get creative. Sharon and her niece decided it made the most sense for her to concentrate getting her current home sold, and then move into her niece’s home temporarily, while she waited to pounce on the right home, when it came on the market. This means she can make an offer on property without the home sale contingency and in the tight market in the city, that made her offer stronger.
Communication is the key!
The biggest key to success is communication! Kim’s team provided updates as interest rates went up and down, evaluated homes for financing as they became of interest and made sure that Sharon was in a position to make the most advantageous offer ~ Sharon was ready to buy. We all know interest rates rose in 2022 and that can limit purchasing power for homebuyers. But, Sharon kept the faith (and kept up her loan file with us) When a lovely townhome appeared in RMLS, her real estate agent was on it. Less than 30 days after her offer was accepted, her FHA insured Reverse Mortgage Purchase loan was finalized and she was handed the keys to her new home. Sharon is thrilled to be in her own space again. It was a blessing to have been with her niece and family for the months it took to find the right place, but we all know ‘there’s no place like (your) home”!
What to Do Next: Thinking of right sizing your home or moving closer to family? Call to find out how far your budget will go with an FHA Reverse Mortgage Purchase Loan. We look at all your options so you can make the choices that will work with your lifestyle, budget and timing. Don’t trust your home financing to just anyone, contact us a conversation at (503) 595-1600. Be Retirement Ready!
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