What you need to know about mortgages and reverse mortgages before you buy into a 55+ active adult community — and who we recommend talking to.
Most 55+ community purchases are straightforward — a conventional, FHA, VA, or jumbo mortgage depending on your situation. But a few things come up more often with active adult community buyers than with typical residential purchases: qualifying on retirement income instead of a W-2, financing a new-construction build where the timeline is longer, or buying with a large down payment from the sale of a previous home. A lender who works regularly with 55+ buyers will know how to handle these — one who doesn't may create unnecessary friction.
For homeowners who already own their home free and clear or with significant equity, a reverse mortgage is sometimes worth understanding — though it comes with real risks that are worth knowing before you talk to anyone.
Conventional, FHA, VA, and jumbo loans for buyers purchasing in an active adult community. The key is finding a lender comfortable qualifying retirement income, pension distributions, and investment accounts — not just W-2 paychecks.
For homeowners 62+ who own their home with significant equity. A reverse mortgage lets you borrow against that equity without monthly payments — repaid when you sell, move out, or pass away.
Equity erodes over time as interest compounds. You can still lose the home if you fall behind on taxes or insurance. It affects what you can leave to heirs. Fees are higher than a conventional loan. HUD requires independent counseling before you can take a federally-insured reverse mortgage — do it, and consider a fee-only financial advisor who isn't paid on the loan.
We're in the process of selecting exclusive lending partners — one purchase mortgage lender and one reverse mortgage lender — who meet our standards for working with 55+ buyers. We'll feature them here when they're confirmed.
We're selecting one purchase mortgage lender and one reverse mortgage lender for exclusive placement across Nova55Living. If that's worth a conversation, reach out below.