Why the Coachella Valley Works Well for Retirees

What Retirees Should Know About Buying a Home in the Coachella Valley

The Coachella Valley has long been a popular destination for retirement, and it’s easy to understand why. From Palm Springs to La Quinta, the region offers warm weather, scenic mountain views, golf courses, and communities designed for relaxed, active living.

For many retirees, buying a home here marks the beginning of a new chapter. Still, even with years of savings behind you, the homebuying process can feel unfamiliar once income comes from Social Security, pensions, or investments rather than a traditional paycheck.

The good news is that retirement doesn’t limit your options. With the right planning and financing strategy, buying a home in retirement can be both flexible and financially sound.

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Why the Coachella Valley Works Well for Retirees

Different parts of the valley appeal to different lifestyles. Active adult communities in Palm Desert and Rancho Mirage attract retirees looking for social amenities, golf, and wellness-focused living. La Quinta is known for its gated communities and proximity to hiking trails, while Cathedral City and Indio often provide more affordable options for buyers on a fixed income.

Whether you’re downsizing, relocating full-time, or purchasing a second home, the key is aligning your home purchase with your long-term financial goals.

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Qualifying for a Mortgage Without a Traditional Paycheck

One of the most common concerns retirees have is qualifying for a mortgage without employment income. In reality, lenders look at the full financial picture, not just a paycheck.

Eligible income sources can include:

• Social Security benefits

• Pension or annuity income

• Required minimum distributions (RMDs)

• Investment or rental income

• Retirement savings and liquid assets

When structured correctly, these income sources can be used to support a mortgage approval. For retirees with substantial assets but lower monthly income, asset-based qualification can be an effective solution.

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Financing Options Often Used by Retirees

Traditional or Asset-Based Mortgages

Asset-based loans allow borrowers to qualify using their savings and investments rather than employment income. Funds do not need to be withdrawn; lenders simply verify that assets could support mortgage payments over time. This approach can help retirees preserve liquidity while keeping investments intact.

Reverse Mortgage for Purchase (HECM for Purchase)

Buyers aged 62 or older may be eligible to purchase a home using a reverse mortgage. With this option, a larger down payment is made upfront, and the remaining balance is financed with no required monthly mortgage payments. The homeowner retains ownership and can live in the home as long as it remains their primary residence.

Using Home Equity When Downsizing

Many retirees sell a larger home, often in another part of California, and use the equity toward their next purchase. Depending on goals, this equity can be used to buy outright, make a substantial down payment, or combine cash with financing to maintain flexibility.

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Additional Factors Retirees Should Consider

Buying in the desert comes with a few unique considerations:

• HOA fees: Common in many communities and can vary widely

• Insurance and property taxes: Costs differ by neighborhood and property type

• Accessibility: Single-level homes, energy efficiency, and low-maintenance features often become priorities

• Future flexibility: Tools like reverse mortgages or lines of credit can help create a financial cushion later on

Understanding these factors early helps avoid surprises and supports long-term comfort.

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A Local Example

A retired couple relocating from Orange County wanted to purchase a home in La Quinta without committing all their cash to the purchase. By using a reverse mortgage for purchase, they made a substantial down payment and financed the remainder with no monthly mortgage obligation. This allowed them to enjoy their new home while preserving savings for travel and healthcare.

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Planning Your Retirement Home with Confidence

Buying a home in retirement isn’t about restriction — it’s about choice. Whether your priority is lifestyle, flexibility, or preserving savings, there are financing strategies designed to support your goals.

With thoughtful planning and local expertise, your retirement home can fit seamlessly into the life you’re building next.

Thinking about buying or relocating in retirement?
Call Art Alvarez for a personalized consultation at 760-969-5023 or reach out through the contact form. Your answers are on the house.

* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.