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As you approach retirement, the home you bought 20, 30 or even 40 years ago might not be the best living arrangement anymore. Maybe the yard work is too difficult to keep up with, or you don’t need as much space. Perhaps you’d like to consider a living arrangement that offers a senior environment with other retirees. Whatever the reason, you should explore the many home options for retirement before you make a decision, as well as determining the amount you are comfortable borrowing for your home loan and your mortgage down payment.
Type of home
That spacious three-story Victorian home complete with a sprawling yard might boast curb appeal, but it’s probably not what you’re looking for when buying a home to retire in. A ranch or one level home with a smaller yard is probably more fitting, or even a condo. Think about you and your partner’s ability to keep up with maintenance and access different levels of the home. Will you be able to keep that up in five years? What about 15?
How much care and community you need
There are many home options for retirement that cater to individuals 55 or older. If you’d like an environment that offers quiet surroundings and organized social events, consider a retirement community. Mandates prevent young children, teens and adults under a specific age from living in these communities, so you’ll likely enjoy a more peaceful day to day setting. Retirement communities generally have recreational rooms for parties and organize events such as bingo and dances. If you are buying a home to retire in and you or your partner need help with medical issues, housekeeping, cooking or transportation, assisted living may be the best option. Assisted living communities create a safe environment for retired adults.
What type of home loan
Unless you have a sizable savings, if you’re buying a home to retire in, you’ll need a home loan. It’s a good idea to start by looking at your budget and determining what a reasonable monthly mortgage payment would be based on your retirement funds. Be sure to factor in the cost of taxes, homeowner’s insurance and any associated payments such as a homeowner’s association (HOA) fee. Next, you’ll want to decide the type of home loan you want. Home loans are offered as adjustable or fixed rate mortgage, with typical payment terms lasting anywhere from five to 30 years. You’ll also want to consider if a government loan or conventional home loan is best for you. Depending on your situation, government loans may be available from The Department of Veteran Affairs (VA), the Federal Housing Administration (FHA), the United States Department of Agriculture (USDA) or the Department of Housing and Urban Development (HUD).
Buying your retirement home
Once you decide the type of home you’d like to live in and the type of environment you’d prefer, you are ready to start house hunting and shopping around for the best home loans. Take your time with your search and focus on finding the perfect retirement home within your budget that meets your requirements.
Sponsored content was created and provided by RBS Citizens Financial Group.