Can a Reverse Mortgage be used to pay for long term care?

Reverse Mortgage Long Term Care

Yes, a reverse mortgage can be used to help pay for long-term care. An FHA HECM reverse mortgage allows homeowners aged 62 or older (aged 55 and older for our proprietary reverse mortgage) to convert a portion of their home’s equity into cash, which can be used for any purpose, including long-term care expenses.

Here’s how a reverse mortgage could be used to cover long-term care costs:

  1. Lump-sum payment: You can choose to receive the reverse mortgage proceeds as a lump-sum payment, which can be used to pay for long-term care expenses upfront or prepay for a certain period of care.
  2. Monthly payments: The reverse mortgage proceeds can be disbursed as monthly payments, providing a steady income stream to help cover ongoing long-term care expenses.
  3. Line of credit: You can opt to receive the reverse mortgage funds as a line of credit, which allows you to draw on the funds as needed to cover long-term care costs. This option provides flexibility and ensures that you only use the funds when necessary.

Using a reverse mortgage to pay for long-term care can be beneficial for some homeowners, as it provides a source of funds without requiring monthly mortgage payments.