Many agree, style of living, ease of maintenance, and closeness to family are fundamental standards for older adult who prefer a Home Equity Conversion Mortgage for Purchase Loan(HECM).
Christina Harmes, in San Diego, affirmed she has clients looking to upsize, downsize, relocate to the city or the country, but be that as it may, 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 in which 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. “A lot of seniors are different from the seniors 13 or 14 years ago....They might be moving to Florida or closer to friends and family.”
Tim Linger, a broker in Orlando, FL., stated, “When it comes to Florida, it’s all about purchasing a retirement home,” Tim Linger said. “It’s not about upsizing or downsizing. It’s about right-sizing and lifestyle, which might be moving near a pool or golf course.”
The appropriate-sized houses, that appear on many seniors’ wish lists, are newer with less upkeep responsibility, paraphrasing Linger’s statement. Leer acknowledges these growing trends, also stating, that many times it is a single-level home in which owners will no longer need to “shovel driveways or mow the grass.” These statements echo the need for older adults to not need to deal with the headache of certain maintenance issues.
In respect to why borrowers ultimately prefer a HECM for Purchase over traditional mortgages, it usually comes down to lower financial stress and higher cash flow. These non-traditional mortgages permit borrowers to purchase a home with only half down and no mortgage payments, they can be very appealing to retirees.
“When we present the option with no mortgage payments, you can see relief wash over them,” Harmes stated, adding that many times the borrowers and their financial advisors are not knowledgeable about this option.
Marc has 36 years in financial services and 6 years in teaching.
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