Articles for people who are currently renting but want to own a home.

Too late to buy?

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Many people in their 50s or 60s who do not own a home may think buying a home won’t benefit them, but it can.  This is the story of one such person.  Mary (not her real name) was single, age 59, and renting in 2012. Her income was  about $3,000/month.

In March 2013, she bought a two-bedroom condominium for $100,000 with a 3.5% down FHA loan.  Her monthly payment including consumer debt totaled $1,193.31.  While living there, she maintained the property and made some low-cost improvements.

In August 2015, 2.5 years later, Mary sold the condominium for $168,000. This enabled her to pay off her consumer debts and buy a three-bedroom condominium for $180,000 with 20% down.  With no remaining consumer debts, her monthly payments were $1,122.79.

Let’s say current appreciation continues. By March 2018, five years after she bought the first property, she should have enough equity to obtain a Reverse Mortgage and eliminate her mortgage payment.  She will then be in a home with expenses for taxes, insurance, HOA, and maintenance of about $550/month.  She will have two extra bedrooms that she can rent out using www.Silvernest.com or www.SunshineHomeShare.org to provide additional income.

The net effect? Based on current numbers, Mary may be able to stop working and live on her Social Security income when she reaches full retirement age.  If she had not purchased a home, it is unlikely that her Social Security alone would have been adequate to pay market rent.  Additionally, rooms on www.Silvernest.com or www.SunshineHomeShare.org may rent for more than what her condo will cost with a Reverse Mortgage.

I cannot predict future appreciation, but wouldn’t you agree that owning a home without a mortgage payment is a good option for low cost housing?
Orion Mortgage, Inc. offers Reverse Mortgages and HECMs to eliminate the mortgage payment for homeowners over 62.  Call Don Opeka at 303-469-1254 with questions.  Colorado MLO license 100007878

You’re Not Too Old to Buy a Home

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Consider purchasing over renting

Many people who are renting at full market rates think it may be too late to buy, or they think there is little advantage to buying over renting.  With both rents and purchase prices rising in the Denver area, we are seeing situations where it is better to buy than to rent.

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You have options

One of our borrowers, age 59, bought a condominium in February 2013 for $100,000 with a $3,500 down, FHA loan.  Two years later, in 2015, she sold the condominium for $162,000 and bought another one closer to work for $180,000 with $36,000 down from the sale of the first property.  If home prices continue to rise as they have recently, the value of the replacement unit will increase enough to allow her to get a Reverse Mortgage and eliminate her mortgage payment.  The current payments are $281/month for HOA, $37.82/month for insurance, and $63.18/month for taxes.  It will be difficult to rent a 3 bedroom apartment for $382/month.  Buying at her age will make it possible for her to stop working in a few years and live on Social Security.  If she wants additional income, she could rent a room to boarders.

We can assist with both your current and future goals

We have another 59-year-old acquaintance that will be collecting disability payments until age 65.  We were able to help him purchase a $310,000.00 home with 45% down.  We structured this loan in anticipation of him being able to procure a Reverse Mortgage at age 62 and eliminate his mortgage payment altogether.  This will allow him to live in a home he chose for a payment that is much less than rent.

Please contact us to see how we can help you purchase a home.