March 17th, 2016 4:14 PM by Sharon Mason
Mortgages after 60: What you need to know
If you’re an Arizona retiree or baby boomer considering buying a new home, you may have some fears about getting a mortgage after age sixty. Can my retirement income support a mortgage? Am I “too old” to be buying a home again? Do I have more mortgage options now that I’m retired? Here’s what you need to know if you’re considering a mortgage after sixty.
Mortgages are no less risky after sixty than any other time in your life so rest easy. As long as your post-retirement income supports a home payment then you can always buy a home. Plus home prices in Arizona are affordable, interest rates are still low and underwriter criteria are less strict. Regardless of the market, it’s always a good time to invest in real estate at any age! Still concerned? Talk to a financial planner to get an independent assessment on your finances before you commit to buy.
Depending on your circumstances, a reverse mortgage might be a good option. A reverse mortgage or home equity conversion mortgage (HECM) is a special type of home loan for homeowners sixty-two years or older that requires no monthly mortgage payments. Borrowers are still responsible for property taxes and homeowner's insurance. According to the U.S. Department of Housing and Urban Development (HUD) the HECM is a plan that can give older Americans greater financial security. Many seniors use it to supplement Social Security, meet unexpected medical expenses, make home improvements and more.
HUD also offers senior citizens with lower incomes help to find safe and sanitary housing through its housing choice voucher program. The program provides participants with vouchers they can use to pay for any housing they choose as long as it complies with HUD health and safety standards. This allows older adults to search for housing outside of subsidized housing projects that may not provide the living conditions they need.
It might seem that a mortgage is the last thing one would want at a time when many baby boomers and those in their sixties and older are trying to simplify their lives. But people are living longer, and having a place of their own can convey a very secure feeling. If you have questions about buying a home after sixty or are looking to sell your Arizona home, please contact me today!
Your Arizona Retirement Expert,
Sharon Mason, Associate Broker
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