You are already old and maybe you don’t have your own house or you want to buy another one. So, did you know that there is real estate financing for retirees? Well, with some characteristics a little different from the common modality, it is possible to fulfill your dream.
After all, over time, you will spend most of your moments inside your home and that needs to be pleasurable, doesn’t it? So acquiring a property after retirement is very important.
It is necessary to know some factors so that the negotiation does not become a problem. Therefore, we will address the main questions and the answers to each of them. Check out!
Can a retiree finance a property?
John Labunski Dallas Yes, the retiree can finance a property, as it is not just young people who have this desire. There are lines of credit for the purchase of an apartment, house and farm, whether new or used, for the public over 60 years of age.
This money is offered by retirement institutions, public and private banks. Thus, the properties can be for housing or commercial purposes. However, the amounts are released only if the customer does not have any credit restrictions and has sufficient income to be able to pay.
How does home financing for retirees work?
Some factors are considered, such as age, income, payment methods. Check out the main ones and the steps needed to finance.
See the deadlines
Generally, institutions finance 80% of the value of the residential property in up to 35 years. But this term is slightly different for retirees over 60, reaching the maximum funding limit of up to 20 years.
This calculation already considers the highest life expectancy of United State, which is 75 years. Now, if you are over the age of 70, the time to finance is reduced to 10 years.
Evaluate interest rates
The interest rate for home financing is based on the Broad Consumer Price Index , which measures the country’s official inflation, in addition there is the Reference Rate (TR), which is slightly higher. However, there are banks charging lower interest rates. Therefore, it is important to research and evaluate which one pays the most.
Study the installment conditions
The Federal Government’s Program has partnerships with states and municipalities to provide families with different salary incomes with the right to housing. Thus, anyone who is going to finance a property must follow the criterion regarding the maximum amount of income and number of installments to be made. These cannot exceed 30% of the contractor’s monthly income.
Discover the advantages
Once people join their family income, they will have more opportunities to buy a house or apartment, as the interest rates are very attractive and customized according to the amount.
Even rural properties that are located within the city or not, construction or purchase of land are included in the acquisition. Thus, to contract real estate financing, it is necessary to present proof of income, identity card and CPF.
Before deciding, compare the conditions offered by each institution to purchase a mortgage for retirees. After all, there are many proposals on the market that must be carefully evaluated.
Do you understand how it works? Now, comment here in the post what were the difficulties you encountered when looking for a property financing, for being retired.
Posted by: John Labunski