Reverse Mortgages: Helping Older Adults Buy a Home in Northern Colorado

Posted on by janjordan

Many older adults in Northern Colorado want to buy a new home that fits their needs, like a smaller house or one easier to get around in. For people 62 and older, a reverse mortgage can make this easier without monthly mortgage payments. 

A reverse mortgage, also called a Home Equity Conversion Mortgage (HECM), lets people 62 and older use their home’s value to get money. Instead of you paying the bank, the bank pays you – either all at once, monthly, or as a credit line you can use when needed. And the Reverse Mortgage for Purchase program can also help you buy a new home using a HECM reverse mortgage.  You repay the loan when you sell the home, move out, or pass away – and it’s insured by the FHA meaning there are many protections in place.

The National Association of Realtors® 2024 Profile of Home Buyers and Sellers report says many home buyers are older—half are around 61 years old. In Northern Colorado, places like Fort Collins and Loveland are great for retirees, with nice communities and outdoor activities. 

The NAR also found 17% of buyers want homes for multiple generations, like living with family. A reverse mortgage can help older adults afford a new home that works for them without monthly payments.

Here’s why reverse mortgages are useful for older home buyers in Northern Colorado:

  1. No Monthly Mortgage Payments: You don’t pay monthly mortgage bills, which helps if you’re on a fixed income. You still cover taxes and insurance, but it frees up money for other things.

  2. Use Your Home’s Equity: Many older adults have equity in their current home. You can use it for a down payment on a new home, so you don’t need a lot of cash.

  3. Pick the Right Home: You can buy a single-family home, condo, or other property that meets HUD rules. This is great for downsizing or getting a home with no stairs.

As part of the reverse mortgage process, the FHA requires you talk to a third party counselor to learn how it works, which helps you decide if it’s right for you. If you have questions about how the process works or anything else, feel free to reach out.