With an H4P, Solo-Agers Can Buy a Home with the Right Social Environment
Americans, more than ever, are aging alone. Approximately 15 percent of Baby Boomers will not have children to take care of them as they age. And about one in 11 Americans age 50 and older doesn’t have a spouse, partner, or child. Close family is the main source of companionship in the golden years, and without that, “solo-agers” risk loneliness and lack of socialization. That’s why it is important for seniors living alone to find opportunities to socialize – that may even mean moving to a new community.
For solo-agers, your current home may not be the best place to stay if you don’t have the chance to be social with others. Whether your house is in an isolated or rural location, or there are no other friends or neighbors your age, maybe now is the time to look for a new home. A Home Equity for Purchase, also called an H4P, is a reverse mortgage loan that lets you borrow against the equity in your current home to get a home you really want, where you want it.
Choosing the right home that offers the right social environment is important, like a tight-knit single-family retirement community or a 55-and-over condominium complex. The good news is, an H4P lets you get the home you want with less money of pocket. Depending on your age and location, your budget could increase from $250,000 to $450,000. An older borrower may actually qualify for more money because there is less risk for the debt to increase beyond the value of the home.
An H4P gives you more home and location options to choose from, all with no monthly mortgage payments. An H4P loan may be just the solution to purchase a home in a community you can be looked after, have friends, and participate in life more. To know if an H4P is right for you, speak with a Certified Reverse Mortgage Professional.
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Learn more about how people are using home equity conversion mortgages for purchasing homes:
Please keep in mind that the reverse mortgage industry in constantly changing and some of the information contained on this site may not be current. Please ask a licensed reverse mortgage professional for up-to-date guidelines.