Using a Reverse Mortgage for Long-Term Care
Reverse mortgages provide a financial lifeline for eligible senior citizens.
Whether you’re still employed or retired, you might qualify for a reverse mortgage if you meet specific requirements.
A reverse mortgage may be used to finance the costs of unexpected emergencies and long-term care.
What is a reverse mortgage?
A reverse mortgage facilitates a variety of ways for eligible seniors to borrow against the equity in their home.
With a reverse mortgage, you will not be required to make monthly payments.
To qualify you must:
Be at least 62 years old
Live in the property
Have equity in the home
Complete HUD-approved counseling
Be able to pay property-related taxes, homeowners insurance and HOA fees
Long-Term Care for Seniors
If you become chronically ill or disabled, you may need long-term care.
Whether you or your spouse receive in-home care, a reverse mortgage may be instrumental toward paying for the costs.
If you or your spouse are required to stay in a medical facility, the residency requirement for your reverse mortgage is not in jeopardy, if the time frame for the stay is less than 12 months or as long as one of the borrowers remains in the home.
However, if neither you or your spouse reside in your home for more than 12 months, your mortgage company could begin legal actions toward selling the property.
Paying for Long-Term Care With a Reverse Mortgage
After qualifying for a home equity conversion mortgage (HECM), a popular type of reverse mortgage, you’ll receive loan proceeds that remain after paying off any liens against the property.
You can elect to receive a lump-sum payment, monthly distributions, a line of credit or a combination of the aforementioned methods.
Money from a reverse mortgage is helpful toward paying for the cost of long-term care.
Applying for a Reverse Mortgage
You can apply for a reverse mortgage to use a portion of your home’s equity to pay for long-term care, make home improvements, pay off monthly debts, to eliminate your current mortgage payments or toward your other financial goals.
After receiving a reverse mortgage, you must continue to pay property taxes, homeowners insurance, HOA costs and you must maintain the property.
Mindful Money is a reputable mortgage brokerage that helps seniors locate affordable reverse mortgage loans in Arizona, California and Colorado.
Apply online today!
Schedule a call with Samantha Cooley, a licensed mortgage broker with more than 20 years of professional experience to discuss reverse mortgage loans or your other home financing needs.