Would a new, beautiful, open concept home interest you if you could build one with no mortgage payments? There is a new loan for people 62 and older called the Home Equity Conversion Mortgage for Purchase (HECM) to help you do just that. Use the equity from the sale of your current home, or buy with a cash payment of about half what a new home costs. It is a new strategy to increase your purchasing power and to significantly reduce your monthly out-of-pocket expenses.
Dreaming of Building in Retirement?
If you have been dreaming of building a new home to better meet your lifestyle and to be able to age in place, this financing option might be right for you. If you or your spouse is at least age 62, this FHA-insured program can help you purchase a new home without depleting a large portion or your savings and without having to make monthly mortgage payments.
The HECM program is not like a traditional home mortgage. The monthly mortgage payments are deferred and the loan balance increases over time. You would still be responsible for paying property taxes, homeowner's insurance and any HOA fees.
The Big Question: If you are not living in your dream home, then what is stopping you?
A Loan That Does Not Need Repaid
Because the loan is insured by the FHA, you or your heirs do not have any personal responsibility for the repayment of the debt. If your heirs wish to retain the property after your death, they may do so by paying the lesser of the reverse mortgage balance or 95% of the appraised value of the home.
The Ultimate Leverage
The matrix shown below illustrates how the program works. It is based on your age, the interest rate and the purchase price of the home. To purchase a home for $350,000, if you are 62, you would only need to pay $216,100 and never make another mortgage payment. The older you are, the less you are required to pay. As an example, in order to purchase a home for $350,000 and you are 70 years old, you would only need $196,850 and never make another mortgage payment.
Note: The calculations are based on the youngest borrower using a rate of 4.8%. Loan charges include origination fees, mortgage insurance premiums and settlement costs which are to be determined. The information is for illustrative purposes only. Please check with an HECM Loan Officer for actual figures. We can connect you to one of our preferred lenders.
Where We Build
Our communities are open 7 days per week? 11-6 M-S and 12-6 Sunday
Parke Place ? 6726 Ventnor Lane, Indianapolis, IN? – Perry Township-Indianapolis South Side 317-791-0002
Sunrise Lake ? Bittner Road and Rising Sun, New Palestine, IN?- Hancock County 317-318-1105
Apple Downs ? 6609 Turf Way, Anderson IN? – South Anderson 765-274-5664
All communities are within 15-25 minutes from shopping, amenities and excellent school systems. Have a look at our communities at? www.BridgenorthHomes.com.
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Polly Riddell writing under the pen name of G. Polly Jordan is The Story Teller. She is a freelance journalist writing business spotlight promotional stories and positively in love with telling the God stories.
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