Let’s look at this situation with open eyes and a focused thought pattern, and it will soon become clear that there are outstanding opportunities for them today. Unlike the past they did not have some of today’s tax laws and programs available to make lasting changes in their financial future.

The first one that is really big is the capital gains tax laws for primary residence, a senior who owns their home and has lived in it for 2 of the last five years can shield up to $500,000 in gains from taxes. Now that does not mean that this will last forever because the Government is looking for ways to recover moneys from all of the money that was used to fix the economy. But for right now this tax code is still available to be used and this is a big one. Remember if you purchased a home 20 or 30 years ago you paid very little for the home in comparison to even the declined values of today’s real estate values.

So let’s say that you purchased your home 20 years ago at the price of $40,000.00 and in today’s market it is worth $400,000 which even today is not uncommon. You would have a gain of $360,000 which you can use for your future retirement. But now you are thinking where will I live if I sell my home?

Well ask yourself these questions

1. Is your home costing you more today then ever before?
2. Does it still suite your needs today or has it out live you.
3. Would you be more comfortable in a better suite home?
4. Is the up keep of you home to expensive and hard to keep
5. Is there somewhere you always wanted to live in your Retirement?

If any of the questions hit you where you live then maybe it is time to think about a home that will better suite your lifestyle or the way you would like it to be. Well I guess right about now you are thinking that it would be too expensive to buy a new home at your age. Wrong it actually could be very profitable to you to sell your home and have a new home that fits your life today. Remember the $360,000 gain above well that is a huge piece of capital, but you are thinking that now you have the money and you need to buy a home that will cost more money to buy. You are correct but there is one piece of the puzzle that is missing.

So you decide to sell your home and capitalize on the tax laws but what will it take to buy a replacement home. Not as much as you think and certainly not all of the money that you have from the sale of your home. With the many bargains that are on the market today you can find a home that meets your needs in the area you want to be if you are willing to do the research. But the best part is yet to come just wait till you read this one.

Under another Federal program you can actually purchase a home and never have to qualify for it credit or income and never have to make a mortgage payment for the rest of your days. The best part is that you don’t have to use all of your money to buy a replacement home. The program is called the Reverse Mortgage purchase program!

This program is federally insured and all you have to be is 62 to qualify and have a down payment and the rest of the money is yours to keep tax free.

So now let’s look at it in detail!

You sell your home and make $360,000 tax free.

You find a home that you like and want to buy and it is a real steal at let’s say $300,000

Under normal circumstance you would have to come up with $300,000 right?

Not under the Reverse Mortgage Purchase Program.

Look Here

You are 65 years of age which is the youngest of the couple. You find a home for $300,000 under this program you would need to come up with a down payment of $120,000 to buy the house with no closing cost and never make another mortgage payment for the rest of your lives. The best part is you still have $240,000 for your retirement income and it is totally tax free. Not to mention it has no affect on your other social programs such as Social Security, Medicare. The other important fact is that you do not need any income or credit to qualify you just need to have the down payment and prove it. This can be shown from many sources such as a closing statement for the sale, your bank account it just cannot be borrowed that is it.