By Natalie Jones, natalie@homeownerbliss.info
Buying a home can be both a challenging and rewarding process, regardless of your age. But for senior citizens, they may have to consider additional aspects of the home-buying process, such as different loan and mortgage options, the type of home, and choosing the right lender. Fortunately, there are many types of resources available that will help a senior citizen with the home-buying process, such as enlisting the help of professionals. Here is a brief guide on how to buy a home as a senior citizen.
Finding the Right Home
Choosing a home for a senior citizen is different than buying a home as a family or as an individual. Here are a couple of important aspects to consider:
- Look for wide hallways and open spaces. These not only make movement easier, but they also create space for wheelchairs and walkers. This also goes for the bathroom.
- Look for a home that doesn’t include stairs. Senior citizens may have a hard time walking up and down a staircase, while others may rely solely on a wheelchair.
- Choose an ideal location. Aside from climate, a senior citizen may want to be near a hospital or clinic for health care purposes. Being near an airport may also be ideal for families and friends that may want to visit.
- Consider ample storage space. Senior-friendly homes ideally shouldn’t have hard-to-reach places that may require bending, stretching, or climbing. Some homes also have large pantries and fixed-attic staircases.
In addition, it’s also important to consider if a senior citizen has or wants a pet. Certain condos and senior communities may also not allow pets, so check with a landlord for pet-related questions. Consider how much maintenance may have to be involved with a home, such as lawn upkeep and snow removal (the national average cost to mow and maintain a lawn is $75 – $100).
Navigating Financial Options and Challenges
While the median sales price for a home in Asheville is $309,000, fortunately for senior citizens, mortgages are becoming easier to get approved for. Seniors can now use the balance in their IRAs, assets, and retirement funds to prove their earnings without withdrawing any money. A variety of loans are also available for seniors, depending on what they qualify for. An important aspect to consider is how long the loan term should be. For some seniors, a 30-year mortgage may be ideal due to low monthly payments. HECM is also a popular option for senior citizens, which requires the following:
- Age of 62 or older
- Current homeowner
- Currently reside in a home
- Paid of most, if not, all of the current home mortgage
FHA’s reverse mortgage program is also another option for seniors, which allows them to buy a different residence using extra money on hand. They typically pay the difference between the sales price and any proceeds from HECM.
Enlisting the Help of Professionals
Mortgage lenders have been known to take advantage of senior citizens, but thanks to the Under the Truth in Lending Act, lenders must now truthfully discuss relevant information with seniors. This may include the cost of the loan and terms of the loan. The Real Estate Settlement and Procedures Act has also become effective to protect seniors, which prevents the payment from any kickbacks. You can also talk to an accountant, broker, or attorney for mortgage advice before signing any papers.
Calculating How Much You Can Afford
To calculate how much house you can afford, it’s best to use an online calculator that may require the following information:
- Current average APR
- Monthly spending
- Loan type
- Annual income
- Down payment
Online calculators may also provide information regarding property taxes, mortgage payments, and homeowners insurance.
Buying a house as a senior citizen doesn’t have to be scary. However, it’s important to consider what type of house to buy, as well as the various loans and mortgages to utilize. Factor in the above suggestions to make your next home purchase easy and affordable.
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