Talk about how the Lifestyle Home Loan Program works.
Mutual of Omaha introduced its Lifestyle Home Loan program this year for those interested in purchasing a retirement home. A companion program called the Lifestyle Home Loan Refinance allows owners to refinance their house. This loan program is insured by the Federal Housing Administration. It allows buyers to get a house for about 55%-60% out of pocket and have no monthly mortgage payment or compounding interest. “The benefit to this person is that as they head into retirement, not having a mortgage payment helps them reduce the cash flow that is going out every month,” Leslie said.
What are the requirements?
The owner must be at least 62 years old or be married to someone who is at least 62 years old. The limit on a home price is $970,800. The loan must be used on a primary residence. Money used on the house closing must come from asset accounts or a gift. The money that is needed cannot be acquired through debt.
What are the owners' responsibilities?
Owners must still pay all property taxes and homeowner’s insurance. They must also maintain the home and cover any homeowner’s association dues.
When does the Lifestyle Home Loan get repaid?
This loan is paid back when the home is resold, whether due to a move or a death. Borrowers keep any equity left after the sale.
David Leslie, home equity specialist, Mutual of Omaha, 3340 Wilshire Ave., Grapevine. 817-597-0253. https://mutualreverse.com/david-leslie
