May 5, 2010

Davenport Now tax rebates

danBy Dan Dolan
Dan Dolan Homes

Seniors can still take advantage of the Davenport Now tax rebates. Could be worth some $5,000, $6,000 or more for buying a new home in Davenport.

Even if you missed out on the $6,500. Federal tax rebate, there’s still some help to be had in buying a new home. Thanks to Davenport Now, buyers of new homes can still receive some $5,000 or more in cash to offset the cost of their new home in Davenport. And depending on the price of the home purchased, that amount could even be $6,000, $7,000 or more. That covers the cost of some of the new furniture that may be needed. 

The need for more senior housing in the Quad Cities and nationally will continue unabated. For many senior households, how best to fulfill that housing need will be an important issue to resolve. Living in a single family ranch-style home that allows for seniors to age in place is still the preferred choice for most households. “There’s no place like home” is still the favored choice. For some, independent or assisted living facilities hold appeal. But the fees that continue to rise month after month make it difficult to budget and forecast the ongoing cost of living there. Currently, most such facilities are in the range of $3,000 to $6,000 (or more) per month or $36,000 to $72,000 a year. For many, their available funds will only carry them in that type of facility for a year or two. 

In my view, the program with the greatest opportunity for seniors and still largely misunderstood is the reverse mortgage for purchase program approved by Congress in early 2009. And here, I’m sorry to say that some of the financial institutions involved in making the loans have done very little to help promote this program and to differentiate this “for purchase” mortgage program from the long-standing traditional reverse mortgages for existing homes that many seniors seem to be fearful of.  

In essence, the Reverse Mortgage for Purchase allows a buyer 62 years of age or older, to buy the new home with a single “moderate” down
payment usually derived from the sale of their existing home. With a reverse mortgage for purchase they can live in their new home “forever” without making any further mortgage payments. They simply pay their taxes, homeowners insurance and any monthly fee for lawn mowing and snow removal—and that’s it. They own the home. Upon their passing or departure, the home is sold by them or their estate, the reverse mortgage is paid off with the home sale proceeds and they or their estate receive any residual funds. Their obligation never exceeds the sale proceeds so neither they nor their estate incurs any residual or “leftover” debt.  

Typically, a 76 year old buyer will make an estimated $75,000 one time down payment on a $200,000 home. That amount varies by age of the buyer, prevailing fixed mortgage rates at time of closing and the related closing costs. In my opinion, a reverse mortgage for purchase can be a very important tool for asset preservation and estate planning. 

This mortgage also helps seniors to budget their annual living costs because essentially their very manageable out-of-pocket housing costs after the down payment are estimated at around $500 per month. That includes real estate taxes, homeowners insurance and lawn maintenance and snow removal costs. Moreover, Dan Dolan homes are very energy efficient so heating and cooling costs tend to average about $100 a month. 

This provides a peace of mind for the seniors and their families, and it limits the likelihood that they will ever run out of money for living expenses.   
Seniors looking to buy a new home that better meets their current lifestyle requirements should make every effort to take advantage of the Davenport Now program while also looking into a reverse mortgage for purchase. We at Dan Dolan Homes would be very pleased to help seniors better understand the programs and to take advantage of them. 

Look for the next generation of Dan Dolan Town Homes Soon

If you visited the Dan Dolan homes at Northwest Circle in Davenport recently, you likely noticed that “almost sold out” sign. At this writing we are down to two available homes. However, we’ll be offering  “next generation” homes nearby featuring our familiar floor plan but with 12” thick “ICF” or insulated concrete exterior walls for added energy efficiency and quiet. We will be accepting reservations soon for the 12 homes to be constructed.   
I would invite seniors to drop by any of our weekend open houses and visit with me or one of the Realtor hosts at the open. If you  would like to make an appointment for a private showing I can be reached at 570-1460 and I can be found weekends at Dan Dolan Homes opens in Blue Grass and Muscatine. Don Gibeault hosts our open houses at Northwest Circle, Davenport, Saturdays and Sundays from 1 to 4 PM. He can be reached at 650-8007. Come out and visit with us soon.