Mortgages in Age-Based Communities

by: Rachel Jackson

Mortgages themselves can be very confusing, and difficult to figure out. However, when dealing with mortgages, something to remember is that different banks and different communities are often going to have deals that you might be eligible for. It is important to look into all options available to you; so that you can be sure you have made the right choice when it comes to mortgages.

One of the options that you might have – without even knowing it – is the option of having a mortgaged in your age-based community. If you are of a certain age, in many states and areas, you are eligible to live in an age based community. This might mean a retirement type community, and it could even mean an assisted living community. However, it could also be a gated community that is only meant for persons of a certain age. All of these communities will have different rates when it comes to home prices, and most of them will have special mortgage deals that you can apply for through a participating bank.

Mortgages in aged based communities work the same way as regular mortgages. You are purchasing the house from whoever owns it, so you will apply first for a mortgage through a bank. The firm will take into account your financial status at the moment, and the amount of money that you are bringing in, and if you are approved for the mortgage, you can buy the home inside the age based community. A mortgage rate will be set, as will monthly payments, and you will be able to pay your monthly rate and continue to live in your home. For the most part, mortgages in aged based communities work the same as mortgages in regular communities. However, there are going to be some differences for you.

The first difference is that often with age based communities, you are buying homes from the community or from the association, instead of from an owner. Often, the homes will carry a different type of price tag because of this, as the community will set their own price. Therefore, you might end up paying more or less for a home in an age based community, based on other factors within your mortgage. However, you will have some good trade offs, as well. Most of the time, in an age based community, you'll have the chance to take part in the association, which might take care of your lawn care, care on your home, and other types of things that might come up. Many people love to live in association run areas, because it means that they are able to do less work for themselves, even as they own a home. If this is the type of life that you are looking for, getting a mortgage in an aged based community might be right up your alley.

Another difference between getting a regular mortgage and getting one in an age based community is that often when you are looking at a mortgage in an aged based community you are going to be on a fixed income, like retirement benefits or social security. Unlike a regular mortgage, your income isn't going to change and so you need to have a smaller payment so that you can afford to make it each month. Therefore, may banks work with age-based communities to ensure that those applying for mortgages within them are able to afford the loan that they get. If you are approved to move into an age based community, you will most likely also be approved for their financing programs through the banks and lenders that they work with. If this is the case, you will end up with a smaller mortgage payment, or with a reduction in fees, depending on what their policies are.

For many citizens, this ends up being the reason that age based communities are the best places for them to live. For you, it might just be the greatest way to spend your years. Living in an association run, age based community will allow you to have the home of your dreams, in a community that you feel comfortable in. If you can get a good deal on your mortgage at the same time, why no enjoy the benefits that come with age!