The vast majority of aging Americans want to remain in their own home as they age. However, making the necessary home modifications and paying for appropriate in-home care can create a serious financial drain on adult children. Increasingly, long-term retirement planning includes a reverse mortgage as a means to make it possible for our parents to age in place, and to address their income shortfalls in retirement.
Following is some helpful information when considering an FHA-insured reverse mortgage (or HECM) for your parents:
• The bank does NOT get your parents’ home once they permanently leave the home.
• The home always remains titled in your parents’ name.
• If the home goes down in value, neither your parents, nor you, nor your parents’ estate can ever owe more than the value of the home when it is sold. If you or your siblings wish to purchase the home, you secure your own financing and buy the home – just as you would if your parents had a traditional “forward” mortgage.
• Proceeds from the reverse mortgage are tax-free.
There are unique challenges that face families as loved ones age. As the daughter of an aging mother, I know first-hand the challenges of helping an older parent, and I understand what you’re going through as you assist your parents with their financial needs.
Call me at any time with questions…or if you just want to discuss needs, as I maintain an extensive list of aging-related service providers. I look forward to speaking with you.