In a fairytale world the beautiful young maiden leaves her bungalow home, marries the handsome prince, moves into the dream castle and lives happily ever after….or do they?
While we would love to have this fairy tale experience, what happens when the “castle” is no longer the perfect fit and the needs and wants of the now aged “young” couple have changed to the point where their house is no longer perfect?
Enter the H4P purchase program. The H4P purchase program allows buyers aged 62 or better to purchase a home by combining a required investment of approximately 50% towards the home sales price, and have no monthly mortgage payments.
Here’s how it works:
Lancelot and Genevieve Charming, both 74, want to buy a more accommodating single story home.
They found the house they want to retire to, and they work with their real estate agent to list and sell their current multi story home.
- The Purchase price of their new home is $300,000
- The sale price of their current home is $200,000
- They are $100,000 short to purchase their new dream home
- The Charming’s plan on using their proceeds from the sale of their home, but they do not want to take on the additional cost of a monthly mortgage payment.
Their realtor has spent the time to learn about the H4P purchase program. She contacts a H4P specialist who inform her that their clients are eligible to receive proceeds to pay towards all of the purchase price except for $125,000.
The realtor is excited to tell the Charming’s that they are able to purchase their dream home, AND save $75,000 from the sale of the existing home!
Let’s see what you have done:
- Found a more suitable home for your borrower’s current needs
- Found a home without taking on a monthly mortgage payment
- The Charming’s love what you have done for them and they tell all of their friends
Oh, and let’s not forget:
- You received a listing
- Your received a sale
- Your increased their purchasing potential which resulted in a higher home sale
Be that agent to turn the fantasy into a reality of finding the house of ones dreams for your clients.
By Karen Resch
Retirement Funding Solutions
33 Devin Way
Windsor, CT 06095