For many retirees, the dream of downsizing or relocating comes with an unexpected reality check. Housing prices are high, monthly mortgage payments can strain a fixed income, and dipping into retirement savings often feels risky. But for Tom and Sarah, a retired couple ready for a new chapter, the solution came in the form of a lesser-known financing tool designed for homeowners 62 and older.
As a real estate agent, understanding options like this can help you guide clients toward solutions that expand their buying power and ease financial stress in retirement.
Real Story: How Tom and Sarah Bought More Home with Less Stress
Tom and Sarah recently sold their longtime family home and walked away with $400,000 in proceeds. They hoped to find a low-maintenance, single-level patio home in a walkable neighborhood. The problem? Homes that checked all their boxes started at $450,000 and went well beyond $600,000 in their preferred community.
They didn’t want to take on a new mortgage with monthly payments. And they weren’t comfortable tapping into their retirement accounts to close the gap.
Their real estate agent recommended looking into a Lifestyle Home Loan, a type of reverse mortgage for purchase insured by the FHA and available to qualified buyers aged 62 and up. With this financing option, they could put down just over $300,000 and purchase a $600,000 home, without a monthly mortgage payment.
They closed with nearly $100,000 in reserves, found a home that truly fit their lifestyle, and kept their retirement plan on track.
Why the Lifestyle Home Loan Worked for Them
This flexible loan option is designed for older buyers who:
- Are retired or on a fixed income
- Prefer not to carry monthly mortgage payments
- Want to use proceeds from a home sale or savings to maximize buying power
- Need to preserve assets for healthcare, travel, or long-term financial goals
With minimal income and credit requirements, the Lifestyle Home Loan can be a powerful option for buyers who don’t qualify for traditional financing. Buyers can use funds from savings, investment accounts, or even gifts from family to meet the down payment requirement.
Learn more about how these loans work from the Consumer Financial Protection Bureau.
Could This Work for Your Clients?
If you’re working with clients who are:
- Over age 62
- Looking to right-size in retirement
- Concerned about stretching a fixed income
- Unsure how to compete with rising home prices
…then the Lifestyle Home Loan can be a powerful solution.
This product isn’t just another niche offering. It’s an increasingly popular financing tool backed by FHA and recognized by organizations like AARP. Reverse mortgage for purchase loans are gaining traction because they allow older homeowners to buy the home they truly want without the burden of monthly mortgage payments.
For agents, that means fewer deals stalling out due to affordability concerns, more opportunities to show higher-value homes, and clients who are genuinely grateful for your guidance.
Instead of watching buyers settle for “good enough” because of budget limitations, you can help them land the home that fits their lifestyle, keeps their retirement plan intact, and reduces stress along the way.
Ready to Learn More?
If you are a real estate agent serving the 62+ market, understanding how this loan works is more than helpful. It is a competitive edge.
Today’s older buyers are savvy, but many do not realize financing options exist beyond traditional mortgages. By being the agent who can introduce a Lifestyle Home Loan, you become the one who solves the affordability puzzle, keeps deals moving, and helps clients secure homes they might have thought were out of reach.
This knowledge positions you as more than an agent. It establishes you as a trusted advisor who can guide clients through one of the most important financial decisions of their retirement years. In a market where referrals and reputation matter, that kind of expertise is a true differentiator.
Take the next step today – learn how the Lifestyle Home Loan can help your clients buy the home they truly want with confidence.
*Equal Housing Lender Sample based on borrower age 70 and interest rates as of October 30, 2024. All loans subject to credit approval and property eligibility.
*For Professional Use Only.
