I don’t believe I get title to the residence, but when paying for a villa in a retirement community I am guaranteed to receive 90% of my purchase price upon my death or moving. Can I get a mortgage on such a property, or must I have actual title to qualify for a mortgage
Terry Says: I truly doubt that you have any equity rights, much less a title, upon which to base a mortgage loan. But you should definitely check with the community about your legal rights to the property. Even more important, you should have your attorney check the financial soundness of the community — and their specific resources to back the promise of 90 percent return of your money should you move or die. It’s one thing to promise; it’s quite another to set up a separate trust to guarantee that promise. It’s definitely worth investigating. And, remember, there are plenty of retirement communities that allow you pay monthly, without a huge upfront deposit. That might be a much better, and more flexible, alternative.