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How To Buy a House When You’re Retired – GOBankingRates

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People entering into retirement may consider purchasing a home once they do so. However, most retirees are on a fixed income in their retirement years and must be careful when considering using their savings for a major purchase.

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Thinking about how to buy a house when retired? Here’s what you need to know about financing options that may be available to you and whether or not it is worth the investment.

Financing a Home Purchase in Retirement

What’s the best way to finance a home purchased in your retirement years? Retirees may consider looking into the following options. As always, remember each retiree’s financial situation is different and the option you chose will ultimately be dependent on your unique circumstances.

Explore Available Education Resources

Before committing yourself to a specific type of financing, Scott Berens, CEO of Balsamo Homes, recommends reviewing resources designed to help seniors find homes. Here are a few resources to check out:

  • AARP HomeFit Guide. The AARP Foundation offers a free publication called HomeFit. This helps seniors not only find a home meeting their needs and budget, it also includes a checklist of things to consider when buying a house, and tips for financing, moving and more.
  • The National Council on Aging. Berens said they have housing counselors available who can help seniors with everything from finding affordable housing to negotiating a mortgage.

Sell Your Existing Home

One of the most unique challenges of retirement is transitioning to life on a fixed income. Retirees looking to buy a home may wonder how they can qualify for a mortgage and if they will be able to make these monthly payments. 

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“Take a close look at your finances,” Berens recommends. “If you have any equity in your current home, you may be able to use it as a down payment on your next home.”

Once you’ve figured out how much money you have available for a down payment, Berens said you can begin shopping for homes in your price range. Some retirees may even qualify for special programs that offer lower interest rates and reduced monthly payments.

Reverse Mortgage

Boyd Rudy, associate broker at Dwellings Michigan, said one of the best ways to finance a home purchased in retirement is through a reverse mortgage. This …….

Source: https://www.gobankingrates.com/investing/real-estate/how-to-buy-a-house-when-retired/

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