Home Loan Options for Retirees and Fixed Incomes

Home Loans for Retirees or with Fixed Incomes

Once retired, the elderly often feel the need to downsize their home, which is why a manufactured home remains the number one housing option for most of them. Lower maintenance and reduced utility costs are other principal factors why manufacturing homes appeal to retirees. Thanks to the Equal Credit Opportunity Act (ECOA) enforced by the Federal Trade Commission (FTC), financing a manufactured home is also quite easy for retirees living on a fixed income now.

So, what options do retirees have when it comes to financing a manufactured home? 

Fannie Mae senior home buying program 

Eligible retirees may qualify for a Fannie Mae loan under certain conditions. 

Under the Fannie Mae senior home buying program, the lender uses the borrower’s retirement assets to qualify for the mortgage. In addition, vested assets from retirement accounts can be used for the down payment, closing costs, and reserves. However, all retirees must mention that they will receive regular income from the asset for at least three years.

Customized solutions, flexible loan terms, and quick processing and underwriting are some of the additional features of this financing option that attract retirees living on a fixed income.

Freddie Mac senior home buying program

Freddie Mac also renewed its guidelines to meet the needs of the retirees with limited incomes but substantial assets. So, this is yet another option retirees or those with fixed income can consider. 

If the assets are entirely accessible to the borrower and are not subject to a withdrawal penalty, then the retirees can qualify for the Freddie Mac loan program. 

VA Loans

VA loans refer to a home loan program offered by the United States Department of Veterans Affairs to all service members, Veterans, and eligible surviving spouses. If you are one of them, you can consider this financing option.

There are a couple of conditions, though. New or existing, your manufactured home should be affixed to a permanent foundation and classified as real property to qualify for a VA loan.

Reverse mortgages 

Reverse mortgages are an increasingly popular option for seniors (aged 62 or older) willing to buy a manufactured home. Officially referred to as Home Equity Conversion Mortgage (HECM), a reverse mortgage is backed by the Federal Housing Administration (FHA).

Under a reverse mortgage, the lender (not the borrower) is responsible for making the monthly payments. No payment is required until the last surviving homeowner has expired, moved, or sold the house. Until then, the borrower is only responsible for paying property taxes and insurance.

To qualify for a reverse mortgage, you must own the home and use it as your primary residence. In addition, it must have been constructed after 15 June 1976, and you must be eligible to participate in the FHA programs.

Get your dream manufactured house from Jaco Sales LLC.

At Jaco Sales LLC, we are known to provide the best and most affordable manufactured homes in Alabama. Our mobile home specialists will assist you throughout the buying process to ensure a smooth and hassle-free experience. Give us a call at (334) 283-1017 today to speak with one of our representatives.