Mom's retiring...wants to keep as much $ as possible

[Kristyn Grimes]

Hi there! So my mom is retiring in a few months. Her current home will probably go for 375k and she owes 70k. She is looking to move on to improved land (approx $50k) and build new construction or a modular home ( approx $260k). I'm trying to think of creative ways for her to finance this because she would like to keep as much of the capital she receives from the sale of her primary residence to use into retirement and have no mortgage. It will be a balancing act but I'm wondering if she should rent and use a construction loan? She has credit in the 800s and I know lenders will look differently at someone who is no longer working. She has a few liquid assets totaling about 150k but I'm not sure for which type of financing that might help her. I hope this makes sense. Let me know if I need to clarify. Would like some others to help me spit ball on this. Please and thank you!

[Benjamin Wakefield]

First of all, is there any way to get this working before she retires? Would be nice since she is now showing income. Second, remember the 6% she will have to pay in agent fees on the sale. 

Finding the right bank to do the construction loan shouldn't be that difficult, and maybe, depending on the market, she can stay in her home until the new property is ready, or within a month or so of being ready. It will be an interest only loan, until the construction is done. Then she can sell and move?