As you reach your golden years, investing in a retirement home in a lively and safe senior living community becomes a top priority. As you tour homes and luxury apartments in your desired area, you’ll likely start reviewing the types of mortgages available. Here’s some helpful information on the leading mortgages so that you can choose the right option for you and your family.

4 Mortgage Types for Homebuyers

1. Fixed-Rate

A fixed-rate mortgage is an ideal option for a homebuyer who plans on living somewhere long-term and craves predictable financial obligations. With this mortgage, you’ll determine your interest rate and monthly payment upfront, and it will remain the same over a 15- or 30-year term. This predictable payment structure helps with financial planning and, in turn, makes it ideal when buying a retirement home.

2. Adjustable-Rate

Adjustable-rate loans are generally enticing to individuals with low credit scores or those who plan on moving within a few years. This is because your interest rates will be lower for the first few years, but afterward the interest rates and payments will vary based on current market rates.

3. VA Loan

VA loans are low-interest, flexible mortgages available to Americans who have served in the United States military for at least 90 days during wartime, 180 days during peace, or six years in the reserves. When securing a VA mortgage, you won’t need to put any money down or invest in mortgage insurance. That being said, the retirement home or condominium purchased must be a primary residence and meet specific standards.

4. FHA Loan

Potential homebuyers looking for flexibility on the size of the down payment often choose FHA loans. Instead of needing a 20% down payment, you can secure a home for as little as 3.5% down with this mortgage. Should you elect for an FHA mortgage, you’re limited in the price point of the home you buy, you’ll be required to adhere to a 15- or 30-year fixed rate loan, and mortgage insurance is required.

If you’re based in Greater Onalaska or La Crosse County, WI, and you’re interested in buying a retirement home or leasing a luxury apartment in a senior living community, Traditional Trades Inc. is a one-stop shop for your housing needs. Call (608) 783-4785 today to connect with a helpful member of their team. Visit their website to learn more about their current listings.