You’ve been thinking about your retiring and moving out to South Florida? So why don’t you? The sun is always beaming here, there are hundreds of miles of pristine beaches, and tons of recreational activities that will surely keep you busy. The housing market in South Florida has been recovering rapidly and the more recent ‘condo boom’ has put Miami, Fort Lauderdale, and Palm Beach on the map.
So you’re contemplating the move to bright and sunny South Florida but you just don’t feel confident or comfortable with your financial situation quite yet. You don’t have enough saved to just up and move and you’re not making the amount of monthly income you used to so qualifying for a new mortgage is out of the question. You’ve explored all of your options and none of them seem to steer you any closer to your Florida dream home.
Many homeowners have heard of the HECM (home equity conversion mortgage) Reverse Mortgage program. It’s the FHA government insured loan that allows qualified homeowners to pay off their remaining mortgage balance and continue living out their days in their home. What a lot of people don’t know is that they could also use a reverse mortgage for purchasing a new property.
For a reverse mortgage purchase, some of the same rules apply. Anyone who will be on title of the new home must be at least 62 years of age or older and the new home must be used as their primary residence. The reverse purchase loan amount is determined based on the youngest age on title. After determining the eligible loan amount, the borrower would be responsible for paying the difference in order to move into their new home and not ever have to make a monthly mortgage payment. The new homeowners are still responsible for payment for the property taxes and homeowners insurance along with any maintenance and upkeep made on the property.
Moving into a new home and not having to make any monthly mortgage payments? That would alleviate any stress or worry you may have about your financial situation and also give you more of your funds to do what you want to do. South Florida offers so many recreational activities, it’s hard to find enough time for all of them. Instead of spending money on your home, let your home spend the money on you!
This options proves to be a great resource for retirees who want to move geographical locations but don’t have the financial security to do it on their own. If considering a reverse mortgage, use this free HECM Reverse Mortgage Calculator to see how much you can qualify for and if a reverse mortgage purchase is right for you!