Homebuying today is an experience beyond what is the norm when builders are working, and housing starts are up. Today the economic recession has left neighborhoods empty. Looking at homes for sale, or visiting virtual real estate sales sites, or auction/foreclosure sites I realized what these homes were missing is the families.
Before I purchased my “good buy” on today’s home market I gave the following some thought. I’m past forty-two the optimal age employers want. Sure maybe my “earning years” have capped. The kids have gone on and the home we lost when the factory closed was way too big. “So what did I want?” I asked the wife.
“Well we need room for your Dad” my wife said. Soon my retirement plan will kick in, and she is still working and the market was flooded with homes to look at.
One of the kids, a frequent flyer to Europe, suggested I look into “Reverse Mortgages” as a long term goal in purchasing our next home mortgage. Another spoke about Big Cities on the East Coast and the homes with a “Granny Flat”. Today it’s a home, a small apartment for grandpa, and later it will be a unit to generate rental income.
Our real estate agent suggested we look only at homes with easy access to cut in a “Granny Flat”. A home already having a two or three car garage, and a driveway that could be shared by all and of course a common walkway. She advised us to look for homes where electrical, sewer, and water could be easily installed for a small kitchen, or maybe a bath. And how to deal with A/C or heating issues.
We put together a budget after I spoke with a building contractor. He gave me a rough estimate based upon square footage for the cost of a very livable “Granny Flat”, or one bedroom rental unit.
We bought a four bedroom house that sat well on a lot so as to give our “Granny Flat” a little private yard and patio. Our building contractor saw, as we and our real estate agent had, the possibility of turning two of the bedrooms into a kitchen and living area, and the other into a bedroom with a small bath. We purchased the home. Grandpa moved in with my sister.
We are in the home of our dreams with a beautiful view, patio, and swimming pool. We are retired and doing just what we wanted for we are “fixing up the yard”.
Our mortgage broker explained “Reverse Mortgages” that can bring us additional monthly income when we attain equity in our home. Today our “Granny Flat” brings in $585 per month and with that money we can now dream of owning another income property.
We may purchase a rental for a small family needing help in these hard times. We will fix it up to accommodate a HUD assisted “Section 8” family and when we are too old to scuba dive, we will sit by the pool enjoying the equity we made on both. We decided “it’s going to be all about the food” when we are older. The food on the BBQ, and watching the grand-kids enjoy the pool. It will be all about the food.
According to the FHA lending guidelines, is it possible for escrow to be paid out of packet instead of rolled into the loan? What are the guidelines for a 2nd time home owner? These are answered below…