First-Time Home Buyer Grants in Texas

May 15, 2020 by LocalMovings LocalMovings Leave a Comment

When buying and financing a home, many Americans have good credit and strong income but have not managed to stash enough away to cover the many upfront costs of homeownership. Down payment and closing costs are two of the major barriers to homeownership. The good news is there are a handful of ways that these costs can be covered in Texas without solely relying on what already exists in your savings account. In Texas, you may be able to get a boost through a first-time homebuyer grant program.

What is a first-time homebuyer grant?

Grants come in different forms — as outright gifts, zero-interest loans, forgivable loans or deferred payment loans. This assistance provides money to help with a down payment and closing costs. Forgivable loans typically don’t have to be repaid — as long as the borrower continues to own and live in the home for a certain period of time, such as five years. Deferred payment loans usually don’t have to be repaid until the borrower moves, sells the home, refinances or pays off the mortgage.

Each grant program has its own terms, conditions, and eligibility requirements, but in general, you must:

Be a first-time homebuyer, as defined by the program.
Take a home buyer education course.
Satisfy income requirements.
Satisfy purchase price requirements. In many programs, the price must be less than 95% of an area’s median home purchase price.
Purchase in the approved location.

Besides browsing the grants we’ve listed below, you may want to check out the affordable home loan programs offered by the Texas Department of Housing and Community Affairs, or TDHCA. In addition to low-interest rates and tax credits, some of these loan programs also include a grant component.

First-time home buyer grants in West Texas

1. First Time Home Buyers Program (Abilene)

The city’s Office for Neighborhood Services program offers up to $5,000 for down payment and closing costs. The property must be within Abilene city limits, and only residents who have lived in Abilene for the past six months or worked in the city for two years are eligible. Applicants must complete 10 hours of community service along with a home buyer training course.

2. Homebuyer Assistance Program (Midland)

Offered through the Midland Community Development Office, the program provides up to $15,000 to help buy a home in Midland. Applicants must contribute at least $1,000 of their own money toward the purchase.

3. Homebuyer Program (Odessa)

The Odessa Community Development Department’s program offers up to $10,000 in down payment and closing cost assistance for existing homes and up to $24,000 for newly constructed homes. The assistance is offered as a zero-interest, deferred payment loan. The property must be in the city of Odessa, but applicants don’t have to be a current Odessa resident to apply. Applicants must contribute 1% of the sales price toward the purchase.

4. Homebuyer’s Assistance Program (San Angelo)

Up to $15,000 in down payment and closing cost assistance is available through the San Angelo Community & Housing Support Division. The amount can’t exceed 15% of the property’s value. Applicants must contribute at least $500 toward the purchase and occupy the home for at least five years to avoid repaying the loan. The property must be within the San Angelo city limits.

Grant programs in North Texas

5. Arlington Homebuyers’ Assistance Program (Arlington)

Offered through the city of Arlington, this program provides down payment and closing cost help of up to $20,000 for properties within the city. The loan has no interest; borrowers have to pay it back only if they sell, do a cash-out refinance or lease the home within five years of purchase. Applicants must contribute at least $1,000 toward the purchase to qualify.

6. Dallas Homebuyer Assistance Program (Dallas)

The city’s Housing and Neighborhood Revitalization Department offers assistance for down payment and closing costs. Up to $40,000 in assistance is available, but the amount awarded is based on need. Funds are provided in the form of a deferred loan that may have to be repaid if the borrower sells, leases or transfers the property within a certain time period. Other eligibility criteria may apply.

7. Homebuyers Assistance Program (Denton)

This program provides first-time home buyers with up to $14,900 for down payment and closing costs. Funds are provided as a zero-interest loan that is gradually forgiven over five years. No repayment is required unless a buyer moves, sells, transfers the title, gets a home equity loan or does a cash-out mortgage refinance during that period. Applicants must live or work in Denton to be eligible and contribute 1.75% of the sale price toward the purchase. The property must be within the city limits. Condos and townhomes are eligible. Homes built before 1970 are not eligible, unless they have undergone major renovation.

8. Homebuyer Assistance Program (Fort Worth)

The city’s program offers up to $14,999 as a deferred loan to help first-time home buyers purchase a home in Fort Worth. Up to $3,000 of that amount can be used for closing costs. The loan is forgiven after five years unless buyers sell, move out or lease the home, or refinance the mortgage without the lender’s consent. Applicants must contribute $1,000 or 2% of the purchase price, whichever is less.

9. Down Payment Assistance Program (Frisco)

This program helps low- and moderate-income employees of the city of Frisco and the Frisco Independent School District buy a first home. The program provides up to $10,000 in a forgivable loan for down payment and closing costs. In addition to other eligibility requirements, at least one adult in the family must work full-time for the city or school district for at least six months. The loan is forgiven in installments over a certain period, depending on the amount of assistance. The property must be within the Frisco city limits, and the buyer must contribute at least 1% of the purchase price.

10. City of McKinney Homebuyer Assistance Program (McKinney)

This program offers first-time home buyers up to $10,000 to help with a down payment and closing costs. The loan is 0% interest and forgivable after five years. Borrowers have to repay the loan only if they sell, pay off or refinance the mortgage in that period. The property must be within the McKinney city limits.

11. Down Payment Assistance Program (Mesquite)

If a buyer contributes at least 1.75% of the sales price toward the purchase of a home, the city’s program will provide matching funds — up to $5,000 — for half of the down payment. The assistance is through a zero-interest, forgivable loan. If the program’s match is less than $5,000, then the additional funds can be used to help pay closing costs, depending on the buyer’s income. The property must be within the Mesquite city limits.

12. First-Time Homebuyers Assistance and Educational Program (Plano)

Administered through the city’s Community Services Division, the program offers a zero-interest, forgivable loan of up to $10,000 for a down payment and closing costs. Borrowers don’t have to repay the loan as long as they own and occupy the home for five years. Applicants must contribute at least $1,000 toward the down payment. Of that amount, up to $500 may be gifts from others, such as contributions from relatives. The property must be within the Plano city limits.

13. First-Time Homebuyers Program (Wichita Falls)

The city offers up to $7,500 for down payment and closing costs to buy a home in Wichita Falls. The property cannot be in the 100-year flood plain. The assistance is in the form of a zero-interest loan that’s forgiven after five years, as long as borrowers continue to own and occupy the home. Applicants must also have adequate cash reserves.

14. Homebuyers’ Assistance Program (Tarrant County)

The Development Corporation of Tarrant County offers a zero-interest loan of up to $10,000 for a down payment and closing costs that is forgiven after five years if borrowers continue to own and live in the home. Only properties from the agency’s inventory are eligible. Applicants must contribute at least $1,000 toward the home purchase and have adequate cash reserves.

Grant programs in Central Texas

15. Down Payment Assistance Program (Austin)

The Austin Neighborhood Housing and Community Development department offers up to $14,999 as a no-interest, forgivable loan to help make a down payment. The property must be within Austin city limits. The loan is forgiven as long as the buyer doesn’t sell, refinance, get a home equity loan, or lease the property in the five years after buying the house. Applicants must contribute $1,000 toward the purchase.

16. Down Payment Assistance Program (Bryan)

Available through the city’s Community Development Services Department, this program offers no-interest loans up to $7,500 for a down payment and closing costs. The home must be within the city limits and not built before 1978. The loan is forgiven after five years, as long as the borrower owns and lives in the home. Applicants must contribute at least $1,000 of their own money toward the purchase.

17. First-Time Homebuyer Assistance Program (Killeen)

Offered through the city, this program provides first-time homebuyers with up to $7,500 for the down payment and closing costs to buy a home in Killeen. Assistance is provided as a zero-interest, forgivable loan that doesn’t have to be repaid as long as borrowers own and occupy the home for five years. Applicants must contribute at least $500 toward the purchase.

18. First-Time Homebuyer Program (San Marcos)

This program offers up to $7,000 as a zero-interest, forgivable loan. The proceeds can fund up to half of the down payment; any remaining money can be used for closing costs. Borrowers must contribute at least $800 of their own money toward the purchase, and the property must be within the San Marcos city limits. The loan is gradually forgiven each year and does not have to be repaid after five years if the buyer continues to own and occupy the home.

19. Homebuyer Residence Incentive Program (San Marcos)

Sponsored by the city of San Marcos, this program offers $5,000 in down payment and closing cost assistance to city employees, San Marcos Consolidated Independent School District employees and Texas State University professors. The help is in the form of a zero-interest loan, which is forgiven after five years as long as the borrower continues to own and occupy the home. The property must be within the San Marcos city limits, but there are no income restrictions.

20. City Employee Loan Assistance (Waco)

The city’s program offers up to $25,000 as a no-interest, forgivable loan to help city employees buy a home in Waco. The loan is forgiven incrementally over 10 years, as long as the borrower continues to own the home and work for the city. Employees must have worked for the city of Waco for at least 12 months to be eligible.

Grant programs in East Texas

21. Down Payment Assistance Program (Beaumont)

Up to $14,999 is offered through the Beaumont Community Development Department to help first-time home buyers with a down payment and closing costs. Assistance comes in the form of a zero-interest, forgivable loan. Borrowers must repay a prorated portion of the loan if they sell, refinance or move within five years of buying the home. The property must be within Beaumont city limits, and applicants must contribute at least $2,000 toward the purchase.

22. Homebuyers Assistance Program (Texarkana)

Offered by the city, this program provides up to $10,000 toward down payment and closing costs as a forgivable loan. The property must be within Texarkana city limits.

23. Homebuyer Assistance Program (Tyler)

The city of Tyler offers help for down payment and closing costs in the form of a zero-interest, forgivable loan. Up to $7,500 is available to put toward an existing home, while those buying a newly constructed home can get up to $14,999. The loan is forgiven after five years as long as borrowers continue to own and occupy the home during that time. Up to $25,000 in assistance is available for HUD Initiative Homes. That loan is forgivable after 10 years. All properties must be within Tyler city limits.

Grant programs in the Upper Texas Gulf Coast

24. First-Time Homebuyers Assistance Program (Baytown)

The city of Baytown offers up to $4,500 as a forgivable loan for down payment and closing costs to purchase a home within the city limits. The loan is forgiven after five years. A prorated portion of the loan must be repaid if borrowers move, sell the property or transfer the title in the first five years after purchasing.

25. Homebuyer Assistance Program (Galveston)

Offered by the city, the program provides up to $14,500 as a no-interest, forgivable loan for a down payment and closing costs. The loan does not have to be repaid as long as borrowers keep the home as their primary residence for five years. The property must be within Galveston city limits.

26. Homebuyer Assistance Program (Houston)

The city’s program offers up to $30,000 for a down payment and closing costs as a deferred, forgivable loan. Borrowers don’t have to repay the loan if they own and occupy the property for five years. Applicants must contribute at least $350 toward the purchase, and the property must be within Houston city limits or be serviced by the city and subject to city property taxes.

27. First Time Homebuyer’s Program (Texas City)

This program helps eligible families buy a home by providing up to $7,500 for a down payment and closing costs. An applicant must be a resident of Texas City for the preceding 12 months to be eligible.

28. First-Time Homebuyer Program (Brazoria County)

The county’s Housing and Urban Development Department offers $1,000 to $5,000 in down payment and closing cost assistance to buyers in unincorporated Brazoria County and participating cities. The money is provided as a deferred payment loan that is forgiven after five years if borrowers continue to live in the home and don’t withdraw equity through a cash-out refinance.

29. Harris County Downpayment Assistance Program (Harris County)

This county program offers up to $23,800 toward a down payment on a home in unincorporated Harris County. Assistance amounts of up to $14,999 are forgiven after five years if the buyer continues to own and occupy the home; loans of $15,000 or more are forgiven after 10 years. The home must be built after 1978, and the buyer must contribute at least $350 or half of the down payment.

Grant programs in South Texas

30. Home Closing Cost Program (Corpus Christi)

This program offers up to $10,000 as a zero-interest deferred loan. Borrowers repay a prorated share of the loan if they sell the home in the first five years; otherwise the loan is completely forgiven.

31. Homebuyer Assistance Program (Corpus Christi)

Up to $10,000 in down payment assistance is offered as a deferred loan that is forgiven after five years, as long as borrowers don’t move or sell the home. The property must be within Corpus Christi city limits. Applicants can purchase only a newly constructed home from one of the city’s participating builders.

32. Down Payment Assistance Program (Laredo)

Offered through the city’s Community Development Department, this program provides up to $14,999 as a zero-interest loan. The loan is forgiven if borrowers own and occupy the home for at least five years. To be eligible, applicants must live in Laredo city for at least six months before applying.

33. Homeownership Incentive Program (San Antonio)

This program offers up to $12,000 as a zero-interest loan to help with a down payment and closing costs. Seventy-five percent of the loan is forgiven over a 10-year period if the borrower doesn’t sell the home or move out during that time. The remainder is due when the home is sold or the mortgage is refinanced. The entire loan amount is forgivable after 10 years for teachers, police officers, emergency medical technicians and firefighters. The property must be within San Antonio city limits, and applicants must contribute at least $500 toward the purchase.

34. Home Ownership Program for Employees (HOPE) (San Antonio)

This forgivable, zero-interest loan for full-time city of San Antonio employees offers up to $10,000 to help with a down payment and closing costs. The property must be in one of two areas targeted for revitalization or reinvestment. The buyer must contribute at least $500 toward the purchase. The loan is forgiven after five years, as long as the applicant remains employed by the city.

35. First Responders Homebuyer Assistance Program (San Antonio)

This program provides down payment and closing cost assistance of up to $15,000 to San Antonio police and fire employees buying a home in specific parts of the city. The buyer must contribute at least $500 toward the purchase. The loan is gradually forgiven over five years, as long as the borrower remains employed by the city during that time.

36. Mortgage Assistance Program (Victoria)

The city of Victoria offers grants of up to $2,500 to help with closing costs and up to 50% of the down payment to buy a home in the city. Only existing homes are eligible, and applicants must demonstrate that they can’t buy the home without the program’s assistance.

Your next step

If you think you might qualify for one of the Texas first-time homebuyer grants listed above, visit the website of the organization that administers the program. There you’ll find details about eligibility requirements, the program’s terms and conditions, as well as whom to contact for more information. Be sure to ask for a list of mortgage lenders that work with the grant program if you’d like to apply.

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Pet Friendly Senior Housing and Senior Living in Houston, TX

May 4, 2020 by LocalMovings LocalMovings Leave a Comment

Pets are much more than just companions. They’re furry friends who add structure and silliness to their owners’ days—and can even improve mental health. Naturally, owners want to build their homes in the most welcoming community for their adopted animals. Unfortunately, many apartments or senior communities have strict no-pet rules or impose limits on the weight, breed, or number of pets. Many hotels and motels also have strict no-pet policies or require exorbitant fees, making traveling with pets inconvenient.

Learn More About Senior Housing & Living Pet-Friendly Options in Houston, TX

At Localmovings.com, we do everything we can to accommodate the moving needs of seniors in Texas.

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Will this move involve climbing two or more floors

Is an elevator available at the location you are moving from or to?

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Tempur-Pedic Mattresses?

Will your floors need to be prepared prior to the move? If so, what kind of floors (wood, carpet, etc) Both locations?

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How to Get a First Time Home Buyer Payment and Closing Cost Assistance?

April 29, 2020 by LocalMovings LocalMovings Leave a Comment

Home Loans with Down Payment Assistance and Closing Cost Assistance

Two budget-friendly mortgage options include down payment assistance and closing cost assistance

My First Texas Home (MFTH)

Available to eligible home buyers from all professions
For eligible first time home buyers and veterans
Down payment assistance and closing cost assistance up to 5% of the mortgage loan
Combine with the Department’s Texas Mortgage Credit Certificate Program for maximum benefits! The Texas Mortgage Credit Certificate offers a dollar-for-dollar reduction on a homebuyer’s federal tax liability.
To learn more, visit our My First Texas Home page or contact a participating lender near you.

My Choice Texas Home (MCTH)

Available to eligible home buyers from all professions
For any qualifying home buyer
Down payment assistance and closing cost assistance up to 5% of the mortgage loan

To learn more, visit our My Choice Texas Home page or contact a participating lender near you.

Help for Texans

If you or someone you know is in need of assistance, please visit our Help for Texans page.

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Will this move involve climbing two or more floors

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What type of parking is available at both locations?

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Will your floors need to be prepared prior to the move? If so, what kind of floors (wood, carpet, etc) Both locations?

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How can I Finance My Move?

April 25, 2020 by LocalMovings LocalMovings Leave a Comment

While moving may have a big price tag, it’s often necessary to fulfill work or family obligations or to attend school. If you’re planning a move and don’t have the cash to pay for it, here are a few of your other options for financing your relocation.

Using a credit card can be a good way to fund a move. Before considering this payment method, you need to find a mover that will let you pay with plastic, as you absolutely do not want to take a cash advance. Credit card cash advances often charge much higher interest rates, in addition to extra fees.

Different Ways to Finance a Move

By David Cohen

It costs a lot of money to move. There are a ton of expenses. Between the movers, packing materials, security deposits, down payments, utilities, travel expenses and any number of other unexpected costs, it can really add up fast.

Finding a way to pay for all of that can be hard. Thankfully, you have options. No matter what your situation is, we’ve got you covered.

Let’s look at the best ways to fund your move:

1. Credit Cards – 0% Interest for up 18 month

This might sound like a terrible idea—you’ve probably been told a million times to never carry a balance on your credit cards. And it’s true, they typically have very high interest rates, not to mention the fees and penalties you might face.

What you might not know, though, is that there are a lot of card issuers that try to attract new customers by offering a promotional 0% APR period. With these 0% cards, you’ll pay zero interest on the balance you carry for a set amount of time.

As long as you make the minimum monthly card payment, you won’t be charged any fees either. In other words, it’s a free loan.

There’s gotta be a catch, right? Well, not so much a catch as limitations. But there are also distinct advantages to using the right credit card to finance you move instead of a personal loan.

2. You Can Save a Lot of Money

Let’s start with the good stuff. Obviously, with a 0% APR credit card you won’t pay any interest for a period of time. Pay off the balance before the end of that period, and your financing is free. That’s it.

With a personal loan, on the other hand, you’ll start accruing interest immediately. And a big chunk of your loan payments will go toward the interest, not the loan amount.

With an interest-free card, you can pay off the balance that much faster because every single penny you pay during that introductory period will go toward the principle.

3. Credit Cards Are Flexible

What about those payments? You’ll have a lot more flexibility with a credit card. If an unexpected expense comes up one month and you can’t put as much money toward paying off the balance, no problem.

You aren’t locked into a set payment like you are with a personal loan. All you have to do is cover the minimum card payment, which is typically quite low, and you won’t be hit with fees or interest. Easy.

Also, with a loan, you’ll receive lump-sum payment upfront. If you need more cash down the line, your only option is to try to get another loan. That might not be possible.

But with a credit card, you can always add another purchase. Flexibility is the key here.

4. The Limitations of Financing With a Card

Now we need to discuss the limitations to using a card to finance your move. Frankly, it won’t be the best option for everyone.

First, you have to qualify for a 0% APR card. You don’t have to have excellent credit, but it still has to be pretty good. If it isn’t, you may not qualify.

The other thing you have to keep in mind if you’re considering using a card to finance your move is that the promotional 0% APR period typically won’t be as long as the payment period you’ll get with a standard loan.

Interest-free credit cards usually offer 0% APR for about a year to 18 months. You may find one that goes up to 21 months, but that’s not the norm.

If you don’t think you’ll be able to pay off the card in that amount of time, you might be better off with a loan. After the intro period, you’ll be hit with standard credit card interest rates, which can be quite high and are almost certainly higher than what you’ll get with a personal loan.

Come up with a plan for how quickly you can pay off the balance. If you’ll only be a few months over the intro period, you might still be better off with a card. Don’t forget that 18 months of interest-free financing can save you hundreds, if not thousands of dollars.

5. Unsecured Loans

If you have decent credit and you need longer to pay off the cost of the move, a secured loan might be the way to go. You can easily get loans with repayment periods of 60 months. I’ve even seen places offering up to 144 months!

Granted, the longer you take to pay off the loan, the more interest you’re going to pay. And that interest starts on day one.

Another advantage to a loan is that you can, at least in theory, get more money than with a credit card. A credit card will typically have a lower credit limit than a loan, though both depend on your creditworthiness, which includes your credit score.

The nice thing about a secured loan is that you don’t have to put up any collateral. You do, however, have to convince the lender that you’re worthy of the loan. You’ll have to go through an application process, which can sometimes be quite involved. It’s typically easier to get a credit card.

If you go this route, you’ll want to shop around for the best interest rate and terms. Talk to your bank and don’t forget that there are many reputable online lenders now, too. SoFi, Earnest and LightStream come to mind.

6. Secured Loans

If your credit is in the dog house and there’s no way you can convince a bank to give you an unsecured loan, a secured loan might be your only option. While there’s nothing wrong with a secured loan, you will have to put something up as collateral of equal value to the loan amount, like a car or savings account.

In some cases, you will even get better terms and rates with a secured loan than an unsecured loan. It may be worth investigating both options.

7. To Sum Up

A 0% credit card is the right choice to finance your move if:

You have decent credit and can qualify for a card
You can pay off the balance in a year or two

An unsecured loan might be a better option if:

You’ll need more than two years to pay off your debt
You need to borrow more than the credit limit on your credit card

A secured loan will work if:

You don’t have great credit and can’t qualify for a card or a secured loan
You have collateral of some value, like a car

Bottom Line

Whether you’re moving down the street or across the country, it can cost a bundle. Not all of us have the kind of cash you need to cover the big price tag that often comes with a move.

If you can, paying for the move with a credit card that offers an introductory 0% APR period can save you a lot money because it’s essentially a free loan. Those cards will give you up to 21 months to pay off the balance without incurring any additional interest or fees. If you need longer, a secured or unsecured personal loan might be the answer.

Thanks David Cohen for sharing!!

He has a degree in literature from Stanford University and a profession in Mass Communication. David is a member of the Moving Feedback research team, an expert in writing educative articles to help readers make the right buying decisions. He is well versed in moving industry matters to give the best advice on moving needs.

Renting Can Be Smarter Than Owning a Home For Seniors.

April 19, 2020 by LocalMovings LocalMovings Leave a Comment

Is it better for a senior to rent or buy?

If you are nearing retirement, look to spend 30% to 40% less on rent than what you spent on your last mortgage payment. … The shorter your time frame, the more likely you should rent. Buying may be the better option for those planning to stay in the same home for 10 years or more.

3 Reasons Why Renting Can Be Smarter Than Owning a Home in Retirement

BY CARLA FRIED

If you’re nearing retirement, it’s likely that renting is a distant memory. But if your retirement plan includes making a move, renting might be a sweeter financial and lifestyle fit. Among households with someone at least 65 years old, 8 in 10 are homeowners, according to Harvard’s Joint Center for Housing Studies. Yet retirement sometimes calls for flexibility, whether that’s the ability to downsize in your current location, relocate to be closer to the kids and grandkids, or chase better weather and/or a lower cost of living in another state. And these moves become harder if they necessitate putting your home on the market.

Use Your Gains to Stretch Your Retirement Savings

While homeownership is the dominant housing choice, more seniors are renting today. An analysis of government data by RENTcafe reports that the percentage of renters at least 60 years old increased more than 40% in the 10 years through 2017. That exceeded the 31% growth rate for homeowners of the same age. And some big cities saw more than double the average renter gain: renters ages 60+ rose more than 80% over the decade in Austin, Phoenix, Fort Worth, and Jacksonville.

If the cost of renting is lower than your annual housing costs, that’s obviously a financial win. (Factor a 3% annual rent increase into your calculations.) Moreover, if you have a boatload of equity in the home, selling today and renting means you could pile your gains from the sale into your pot of retirement savings. The profit from the sale can make it easier to delay starting Social Security until age 70 to lock in the highest possible benefit.

The first $250,000 in capital gains from the sale of a home you have lived in for at least two of the past five years is tax free. (The capital gains exclusion is $500,000 for married couples filing a joint tax return). Even better, your cost-basis can be increased by the value of capital improvements you made to the house.

“When someone wants to retire and is on the edge of not being able to have the lifestyle they want or fears running out of money in their 90’s, I recommend they consider renting,” says Maria Erickson, a certified financial planner in St. Petersburg, Florida.

Erickson says selling sooner rather than later may be smart, given we’re long into an economic recovery that has lifted real estate markets in most parts of the country. “In a recession, your home value can go down, and selling becomes harder.”

Don’t Underestimate the Cost of Home Ownership

If you’re thinking about selling your home and buying another, make sure you’re realistic about the costs involved. Plan to own without a mortgage? Great, but remember you’ve still got property tax, maintenance and insurance to contend with.

“When people come to me with a budget, the number one missing item is home maintenance,” says John Crumrine, a certified financial planner based in Shallote, N.C. He says clients lose track of how much they spend on this because it’s not a fixed monthly outlay. He advises budgeting 1% to 2% of your home’s value for annual maintenance costs, and adjusting it for inflation.

Moreover, you may find that home projects and chores that are DIY today—garden and lawn maintenance, swapping the storm windows in and out, gutter cleaning etc. – may become difficult down the line. Hiring help for those chores will add to your ownership expense.

Carefully consider the rising cost of property tax if you live in an area where property values tend to increase at a strong pace. You should also review your 2018 federal tax bill. That was the first year the $10,000 limit on state and local tax (SALT) deductions –which includes your property tax tab – was in play. If the limited SALT deduction caused your bill to rise, and you are concerned about that cost in retirement, selling and renting may improve your after-tax cash flow.

Homeowner’s insurance can also become a rising cost. Erickson says in Florida, climate change and the potential impact on homeowner’s and flood insurance is increasingly on the radar of her retiree clients.

Another red flag for those considering a new home purchase in retirement is if you will need a sizable mortgage. Crumrine says if you have plenty of guaranteed income –Social Security, a pension, perhaps an annuity—he doesn’t have a problem with retirees carrying a mortgage. But that presumes you make a down payment of at least 20% to 30%. A reality of retirement is that you may find yourself needing to move unexpectedly at some point due to changing health. “A down payment of 5% or 10% is a red flag,” he says.

If you have to sell soon after buying, or during a period when home values are down, there’s a chance the sale price will not cover repaying the mortgage balance and the typical 5% to 6% sales commission to your real estate agent. “The worst situation is if you have to sell sooner than expected and need to bring money to the closing.” There’s less of a chance of that happening if you put at least 20% down.

And if you’ve been mortgage free for a few years, you might not be aware of new developments: chances are that if you take out a new loan, you won’t be able to claim the mortgage interest deduction. That’s because new tax law that went into effect on 2018 returns raises the standard deduction to $24,400 in 2019 for married couples filing a joint tax return ($12,200 for single filers). Unless your mortgage interest and other deductible expenses such as charitable donations are more than those limits, it won’t make sense to itemize.

Appreciate the Beauty of a Low-Maintenance Lifestyle

“There is a beauty to living in a rental and sending the landlord a text when something needs to be replaced or repaired, says Beth Agnello, a financial planner in the Winston-Salem, N.C. area. “The older we get the better that fits in. My advice is that you don’t want to have this huge commitment to a home unless you’ve decided it really rings your bell.”

That can be especially true for single homeowners who don’t have a partner to share the work it takes to maintain a home. (Married couples should give careful thought to how the surviving spouse will fare as a solo homeowner.)

Renting allows you to test-drive your retirement life. Agnello says clients put a lot of time and effort into saving for retirement, but haven’t really planned what the day-to-day of living in retirement will look and feel like. Even if you’re thinking of downsizing in the same area, renting gives you time to get acquainted with your retirement self. “This is a wonderful time to have flexibility. And flexibility means cash. Cash gives us the flexibility to change our minds,” says Agnello.

You can also test drive a new area. Whether you’re heading to your dream retirement location, or making a big switch from city to country or vice versa, don’t overcommit at first, Crumrine says. “I see people who retire, buy a house on the beach and then a year later realize they would rather be at the next beach up the coast. But they are locked in.”

Thanks CARLA FRIED for sharing!