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“My friend at work told me that their brother,…my cousin told me that their Uncle,…my wife’s stepfather told us at dinner with all the relatives at the table…..”
These are typical of comments we as Realtors often hear when suggesting that there exists a purchase option with potential to address the concerns they have been sharing while showing Clients property that is… “just what we have been looking for” while at the same time priced 25-50K higher than they are qualified for using a forward type mortgage or using more cash reserve than anticipated. For the Boomers aged 62+, the “HECM For Purchase” or “H4P” is becoming available for more qualified Buyers each day. According to current information approximately 9-10,000 Boomers turn 62 per day and will continue to do so for up to the next 18-19 years. At this age, many are realizing that with adult children now on their own and the family home which served it’s purpose for many years no longer needed, the opportunity is presented to consider what and where they might like to live while young enough to be active, possibly returning to activities and hobbies that were enjoyed when younger.
For this group, the primary goals are often:
A. Do not want a mortgage payment obligation.
Often this can remove the stress when not necessary, bringing peace of mind while opening other options.
B. Have a desire to “right size” the next home.
“Right Sizing”…Contrary to first impressions, this often doesn’t mean smaller with less room for ________? Rather, it means that what they choose is more suitable to their lifestyle going forward.
There is also the other side of the loan program that offers a way to possibly supplement the various “in place” financial resources, or in some cases the unplanned. This is the “For Needs” scenario that may be the means for remaining in ones home.
Making Payments on a Reverse Mortgage (HECM), Kent Kopen
The following link is an informative website of Dan Hultquist, Author of the book “Understanding Reverse – 2017”
The National Association of Realtors Webcast on “Using A Reverse Mortgage (HECM) To Buy A Home”