Why Realtors Might Want to Sell to Seniors in Maryland
Maryland is about to get a lot "grayer", why struggle selling homes to those who have trouble qualifying for a mortgage when seniors already have equity and can't find anyone to build a home just for them (can we say Ranchers?) McManisions with multiple floors are not what seniors are looking for.
One day I decided to research what the largest growing market was going to be in the next 20 years. I came across a few articles and facts that astounded me. Here are a few:
According to the U.S. Census Bureau, "the number of Marylanders 65 or older is expected to double by 2030 to about 1.2 million, or nearly one of every 5 residents." "Maryland is likely to become more crowded and a whole lot grayer over the next 25 years - a trend experts say could challenge the states' ability to house and support its increasingly dependent population."
According to Senior Facts and Figures, "there are currently 55 million seniors and over the next 20 years, more than 70 million baby boomers (one in every four of us) will join the senior rank." "Seniors are the wealthiest consumers on the planet" according to Senior Facts."This consumer has the most disposable income with the greatest buying power of any other segment." "The senior population controls 77% of all financial assets in the U.S. and accounts for approximately 40% of consumer demand and over 79% of all 50 plus Americans own their own home and 67% of these being mortgage free" states Senior Facts and Figures.
According to Met-Life studies, "there has been a steady increase in age-qualified active adult communities, and other 55+ communities. More seniors are moving to 55+ communities for family related reasons and another reason is the better quality housing unit. Few seniors are moving because they want a larger home."
"With 10,000 people turning 50 every single day and 50+ consumers accounting for more than a quarter of all new homes sales, it is the fastest growing segment of the housing industry" according to "California Green Solutions."
According to Huntington News, "West Virginia has the second highest senior population, Florida is first and Pennsylvania is third."
"Wheelchair accessible homes are hard to find" per Free Press Release.
After I read these facts I thought to myself, why aren't more builders building what the greatest generation wants - the rancher home or townhouse that is "senior ADA friendly and energy efficient" and why aren't more realtors selling to seniors and cultivating the senior buyer? This is going to be the tidal wave of the future.
National Council of Aging conducted a study in conjunction with Met-Life that supported many of these facts about what seniors wanted. They found that the majority of the seniors did not want to retire in nursing homes or assisted living homes but in homes in a development with amenities. With this supportive data, Congress became involved and developed a new loan for seniors and signed off on it in February 2009 called the, "Home Equity Conversion Mortgage Reverse for Purchase ". FHA backed and insured the loan with guidelines that protect seniors.
This loan would help seniors who normally couldn't qualify for a loan because of limited income, qualify because income and credit are not important. What is important is that they are 62 or older and have a certain amount of down payment to put down on their home. It could come from: a house they sold, cashing in investments, savings, and even a gift. The lender backed and insured by FHA would in essence lend a "matching contribution" depending on age and down payment and the senior would have no monthly payment until he dies, sells, or moves. Seniors would retain title to the home, and could never be forced to move even if the house value went backwards and they out lived the equity in the home.
This is a loan allows seniors to purchase twice as much home with NO monthly payment. This way, the senior would get the home he wants to retire in - have no mortgage payment and can use the extra savings for in-home care, medical bills, long term care insurance, and anything he or she may need. This not only aids the seniors but also helps stimulate the building industry and the realtors who are the engines of our economy.
Article Tags: Senior Facts
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ABOUT THE AUTHOR
Mary Andes - Wells Fargo Reverse Mortgage Specialist
I help seniors purchase homes with no monthly payments. Call me at 240 575-5794, let's find out if you can be prequalified for a reverse refinance or a reverse for purchase mortgage.
Reverse Mortgages for Seniors in Maryland