By Elaine Donnelly
Extending sexual misconduct to combat units
Independent voices from the TWT Communities
If you long to retire within sight of the Chesapeake Bay, by the shores of Deep Creek Lake or atop the mountains at Wintergreen, you may be thinking about taking advantage of today's low interest rates and affordable prices to buy your golden-years dream home right now.
The idea of a home loan with no down-payment requirement causes consternation among some people, many of whom view that type of home financing as part of the bad lending practices that ended in a housing crisis and widespread foreclosures.
"To qualify for an investment loan, you'll usually need at least 25 percent for a down payment, and interest rates will be about three-eighths of a percent higher. The debt-to-income ratio should be a maximum of 45 percent," he said. "Lenders also usually require rent-loss insurance, which can be expensive, if you are using some of the rental income to qualify for the loan."
"If the buyers are absolutely sure they won't change their mind about where they want to live when they retire, buying a home now could be the right decision," Mr. Donnelly said. "But if you are as far away from retirement as 10 years, it might be better to wait until you are little more firm in your plans. Your circumstances could change a lot in 10 years, and then you might be stuck with a property you can't sell."