Active Adult Communities in Chester County PA: A Downsizer’s Guide to 55 and Over Living and How to Finance It
Active Adult Communities in Chester County PA: A Downsizer’s Guide to 55 and Over Living and How to Finance It
Active adult communities in Chester County give downsizers some of the best options in the region, from one floor living to built in social life, and there are more of them here than most people realize. But here is the part that catches a lot of folks off guard, and it is the reason I am writing this. The hard part of downsizing is usually not finding the home. It is qualifying for the loan on a retirement income, even when you have plenty of equity. Let me walk you through where these communities are and, just as important, how to actually finance the move.
I am J.R. Conway, owner and VP of CM Mortgage Services Inc., a second generation, family owned, veteran owned mortgage brokerage at 1240 West Chester Pike in West Chester. I have been financing homes across Chester County for over 20 years, and the downsizing buyer is one I take personally, because the standard mortgage playbook does not fit them, and a lot of lenders give up instead of doing the work. Here is how it really works.
What a 55 and Over Community Actually Gives You
An active adult community, usually age restricted to 55 and over, is built around a simpler, lower maintenance way of living. Think single floor ranch and carriage homes, or villas, where someone else handles the lawn and the snow. Most have a clubhouse, walking trails, and a built in community of people in the same stage of life. For a lot of empty nesters, it is less house, less upkeep, and more living.
Chester County has a strong lineup, spread across the county:
Around West Chester, Hershey’s Mill is the big, established name, a large community with ranch and carriage homes, and there are newer options like Westtown Reserve and The Woodlands at Greystone. In Exton, Meridian at Eagleview offers 55 and over living close to shopping and healthcare. Out toward Downingtown and Chester Springs, the Preserve at Marsh Creek sits right by the lake, with villa style homes and water views.
Head west and the choices open up. Traditions of America at Brandywine Farms near Coatesville is a popular active adult community, and Coatesville also has the Hillview communities. Phoenixville has Coldstream Crossing and Regency at Kimberton Glen. And across southern Chester County, you will find communities like Ovations at Elk View in West Grove, Big Elk, and options out toward Oxford and Cochranville, where prices tend to be friendlier, the same southern county value I wrote about in my Oxford buying guide.
Pricing and availability move around, and most of these communities carry a homeowners association fee on top of the purchase, so always check current listings and ask what the fee covers. A good resource for browsing is 55places, and when you are weighing the real monthly cost, remember that property taxes still vary by township and school district, which I broke down in my property taxes by township guide.
The Real Challenge: Qualifying on a Retirement Income
Now the part nobody warns downsizers about.
You may have owned your home for decades. You may have real equity and real savings. But when you apply for a mortgage, the lender looks at monthly income, and for a retiree, the income on paper is often just Social Security and a pension. On its own, that number can fall short of what you need to qualify, even though your finances are genuinely strong. I see it constantly. Asset rich, income light on paper, and told no by a lender who did not know how to look deeper.
The good news is there are real ways to solve this, and they are exactly where an experienced broker earns their keep.
How We Actually Get Downsizers Qualified
Here are the tools I use for retirees, and most big lenders either do not offer them or do not bother.
Use your assets as income. This is the big one. Through a method often called asset based qualifying or asset depletion, we can convert your retirement and investment accounts into qualifying income. In plain terms, your nest egg counts toward your ability to repay, not just your monthly checks. The exact calculation depends on the program, and I run it for your specific situation, but for an asset rich retiree it can be the difference between a no and a yes.
Gross up your nontaxable income. Social Security and some pension income are not taxed, and lenders are allowed to count that nontaxable income at a higher value because of it. That grossing up can meaningfully raise your qualifying income without you doing anything differently.
Standard conventional, when it fits. If your retirement income is strong enough on its own, a straightforward conventional loan is clean and simple. Not every downsizer needs a special approach. The point is to match the right tool to your situation, not force everyone down one path.
One honest note, because downsizers ask me about it all the time. A reverse mortgage to buy the next home sounds appealing, but in this market I will tell you straight that it rarely works. The down payment it requires is steep, and it will not let you own two homes at once while you sell. For almost every downsizer here, the paths above are better.
The Part Where You Still Own Your Current Home
Most downsizers are not first time buyers. You have a home to sell, and that adds a wrinkle. Do you buy the new place first, or sell first?
In most cases, the cleanest move is to sell first and use a rent back, where the buyer lets you stay in your home for a month or two after closing. That puts your equity in hand to buy the next place and keeps you from carrying two payments or making a weak offer that depends on your sale. I laid out the full picture, including why bridge loans are not a practical option here anymore, in my guide on how to buy before you sell in Chester County. For a downsizer, getting this sequence right is half the battle.
How to Start Your Downsizing Move
The first step is not touring communities. It is knowing your real numbers.
Before you fall in love with a villa at Marsh Creek or a ranch at Hershey’s Mill, let me look at your full picture, your income, your accounts, your current home’s equity, and tell you honestly what you qualify for and which approach fits. That way you shop with confidence and you do not get a surprise at the worst possible moment. It is the same honest, numbers first approach I bring to every buyer, and it starts with my Chester County pre approval process.
You have earned this next chapter. The house is the easy part. Let’s make sure the financing is handled by someone who knows how to get a downsizer to the finish line.
Frequently Asked Questions: 55 and Over Communities and Financing in Chester County
What active adult communities are in Chester County?
Chester County has many, spread across the county. Around West Chester there is Hershey’s Mill, Westtown Reserve, and The Woodlands at Greystone. Exton has Meridian at Eagleview, and Downingtown and Chester Springs have the Preserve at Marsh Creek. Coatesville, Phoenixville, West Grove, Oxford, and Cochranville all have options too. Availability and pricing change, so check current listings.
Often yes, even when your monthly income looks low on paper. Lenders can gross up nontaxable income like Social Security, and through asset based qualifying we can count your retirement and investment accounts as income. Many retirees who get told no by a big lender actually qualify once someone looks at the full picture the right way.
Can I get a mortgage in retirement if my income is mostly Social Security and a pension?
What is asset based qualifying or asset depletion?
It is a way to qualify using your savings and retirement accounts rather than just your monthly income. Your assets are converted into qualifying income under the loan’s formula, which helps an asset rich, income light retiree qualify. The exact calculation depends on the program, so it is worth having someone run your specific numbers.
Should I use a reverse mortgage to buy my next home?
In this market, usually not. The down payment a reverse purchase requires is steep, and it will not let you own two homes at the same time while you sell your current one. For most Chester County downsizers, asset based qualifying or a standard loan paired with selling first is a better path.
Should I sell my current home before I buy the new one?
For most downsizers, yes. Selling first puts your equity in hand and removes the problem of carrying two payments. You can negotiate a rent back so you are not scrambling for a place to live between closings. It is usually cleaner than trying to buy first, especially since bridge loans are not a practical option here anymore.
Do active adult communities have extra monthly costs?
Yes. Most active adult communities charge a homeowners association fee that covers things like lawn care, snow removal, and amenities. That fee is on top of your mortgage and property taxes, and taxes still vary by township and school district. I build all of it into your real monthly number so there are no surprises.
Ready to Plan Your Downsizing Move?
J.R. Conway is the owner and VP of CM Mortgage Services Inc., a licensed, second generation, family owned, veteran owned mortgage brokerage located at 1240 West Chester Pike, Suite 212, West Chester, PA 19382. NMLS #147631. CM Mortgage Services has been helping Chester County buyers finance homes for over 20 years, offering Conventional, FHA, VA, USDA, Jumbo, DSCR, bank statement, and renovation loan programs.
If you are thinking about downsizing into an active adult community in Chester County and want to know what you really qualify for, including using your assets as income, that is exactly the conversation I have with downsizers. Start at cmmortgage.com, apply at our secure application, or call me directly at 610-430-6852.
All loans subject to approval. Equal Housing Lender.
