May 2018
How to Buy a Vacation Home
If you are a senior and own your home but are still holding out on that dream of having the ultimate vacation property which you have wanted for years, you might just be “sitting” in the resource to make that dream a reality.
Why not use funds from a reverse loan to purchase that cabin, beach house or even a tree house? Why not?
If you have enough equity in your residence you could possibly qualify for the FHA reverse loan or a Jumbo reverse mortgage and use the funds from it to purchase a second property.
Its much easier to qualify for a reverse mortgage then traditional mortgages, because they are not Underwritten using Debt to Income ratios or FICO scores, but are based upon residual income and verification of 24 months of “timely” payments for property taxes, Homeowners Insurance and any other expenses associated with the client’s residence.
You will still be on Title of your residence and continue to own it and just as you wish, it will go to your estate when you have passed on.
Not the Lender.
You won’t have any mortgage payments for the reverse loan and if the vacation property does require a mortgage (If you can’t pay “all cash” for it), you could cover those payments by renting it out during the local tourist season and still have it available for yourself whenever you want to visit it and enjoy your vacation property.
See what my clients are saying!
So where is your “dream” property? A beach, a lake, the mountains, the desert or an island?
What’s holding you back from enjoying your retirement years that could include more skiing, fishing, golfing, sailing or simply sitting back in an Adirondack chair on a deck, looking at blues skies, trees and hearing birds sing?
That sounds really nice to me as well.
The Costs of Care Giving
As the Boomer population ages and the reality begins to loom that at some point they may need someone to provide them with “care giving” but no one wants to talk about this possibility happening to them.
But as we age and I’m going to be 72 myself ( Yikes, when did that happen?) our bodies are going to start to give us trouble as we begin our slide down the slope of aging and at some point, we may need help.
Ideally the Boomer generation has taken better care of themselves then our own parents did and we certainly are much more active than their generation who smoked, didn’t exercise and had high fat diets.
But at the least, they didn’t have as much stress in their lives as we seem to have in our’s and their generation lived a much slower daily pace compared to the hectic lifestyles so many of us have in this period of time.
Hopefully those of you who are reading this post and are of a “certain age”, will manage to dodge falling apart and having to rely on a care giver. But what happens if you need one and you don’t have Long-Term-Care Insurance?
Medicare will not pay for this service in case you were under the impression it would, you have to pay for it.
You will have to rely on your own retirement funds if you happen to have any and pay a professional care giver or rely on family members to take care of you. And that’s a terrible option.
There are two kinds of “costs” in this equation, the actual monthly expense that can run $4000 or more each month while you are helpless or the physiological and turmoil and burden to your family members who will be overwhelmed by the responsibly of taking care of you.
And if you don’t have enough funds to cover this expense, it will be up to your children to pay for it and in many family situations, the adult children will fight among one another and it typically will fall to one of the children to pay for all the expenses and also to attend to your needs. And the one’s who refuse to help in any capacity, will disappear.
As for paying for the care of a professional, licensed and Bonded care giver that expense could be paid by the funds from a reverse loan and it will become a safe and valuable option for money to cover the costs and relieve the adult children from using their own funds to pay for your care.
It’s something to think about, utilize one’s equity to pay for your own needs and not rely on your adult children and keep your dignity and keep your family intact.