Issue 5.17
This spring, we have a lot to be grateful for and a lot to look forward to in 2017. The parade of Homes starts the early spring out with another 28 beautiful homes to look and see what is new, fresh and trending. I know some look at the Parade of homes as an event where we can look at how the affluent live and wonder if we married the wrong guy – right? But, really just a fun time to see some beautiful homes and trends and also see simple decorating and furnishing ideas that is fun to see if you have time to visit.
As always, we finance several of the Parade homes and as the largest senior lender in the state with all of the senior FHA loan programs we look forward to helping those that are over 62 perhaps purchase a home that is nicer than they might have thought they could afford.
When using the HECM loan for seniors that are over 62, this HUD program allows you to purchase a home for roughly half the price of the home and have no mortgage payments for life. So, for example if you are 62 or older, you can purchase a 300,000 home for 150,000 and own it free and clear of any mortgage payments. You own the home, so just like paying cash you pay your own taxes and insurance at the end of each year, and both of you can live in the home as long as one of you are still living and residing in the home.
So, most of our clients would sell a home in Salt Lake for 400,000 then retire to beautiful St. George and only have to put down 150,000 on the new home that cost 300,000 and with the FHA loan, live in the home free and clear of any mortgage payments and still have the rest of the funds from the sale of the Salt Lake home in their savings in case they need it.
The loan also allows you to keep that Salt Lake home and go back and forth in the winter and summer, but it allows you to buy this home for half the price and not have any mortgage payments and gives you more flexibility to not have to immediately sell the Northern Utah home. You can have both homes and go back and forth during the year.
The new home with the FHA insured Loan here, simply has to be your primary home and you need to be here six months of the year and of course you can’t rent the home and use it for rental purposes. Other than that, you can have multiple homes go back and forth and not be strapped to a mortgage payment or putting all of your cash into the home.
More than half of our senior clients today buying home and retiring opt to use the FHA senior HECM loan more than paying cash or using a conventional loan. Over the past five years, we have funded more seniors buying a home with this loan than all other brokers and lenders combined, as we are the only lender in Southern Utah that can fund and underwrite and service our own HUD insured reverse purchases loans.
Remember when buying a home for your retirement, please look at all of your options and have your investment advisors or mortgage planner review all options for you. But, please make sure you consider the HECM for purchase loan for seniors when retiring.
Until next time enjoy the early spring. Brandon Hansen, Cherry Creek Mortgage.
Brandon can be contacted at 435-673-4773.