Thanks to modern medicine and healthier lifestyles, people are living longer than ever before. As a result, seniors are able to maintain a higher quality of life and enjoy quality time with their loved ones for longer.
However, there comes a time in many senior's lives when it becomes increasingly difficult to manage day-to-day activities or to care for a spouse or parent whose health is declining. Whether it is due to Alzheimer's, dementia, a physical handicap or other health limitations - many seniors and caregivers reach a point when need outside professional help.
Paying for a professional or skilled nurse to provide care can be very expensive - especially since most seniors rely on a fixed income to financially survive. Many can only afford a portion of the care hours that they actually need, which places a huge burden on the caregiver, spouse, children and/or patient – and in this situation everyone suffers.
So what options do seniors have when Social Security, pensions, cash or other types of income are simply not enough to afford the care they need?
One option is to consider a Reverse4Care mortgage. This loan program is specifically designed to help seniors and their adult children pay for the care they need to stay in their home, maintain their health and their independence.
What Is a Reverse4Care Mortgage and How Does It Work?
The Reverse4Care mortgage is a loan designed for senior homeowners that converts home equity into cash to help pay for at-home care expenses.
This loan follows standard reverse mortgage guidelines which have improved significantly over the last two years in order to protect seniors and help them live better.
The mortgage does not have to be repaid until the last surviving homeowner moves out of the home or passes away.
How can a Reverse4Care Mortgage Help with Affording In-Home Care?
Using the Reverse4Care loan program, the reverse mortgage can be set up to automatically deposit a fixed amount of money each month into the senior's bank account. This set amount is typically determined by calculating the amount that the care costs each month, less what they can afford based on their other forms of income. There is never a mortgage payment and the senior may elect to stop receiving the payments at any time.
Who Can Qualify?
The qualifications for a Reverse4Care mortgage are simple.
- At least one spouse must be 62 years or older
- There must be a minimum of 40% equity available in the home
- Owners must live in the property.
There are minimal income and credit requirements - in fact, a senior may still qualify even if they are currently delinquent on their mortgage or have other debt.
PRIMARY BENEFITS OF A REVERSE4CARE MORTGAGE:
You Get the Professional In-Home Care You Need.
With the Reverse4Care mortgage you have the resources you need to stay in your home, maintain your health and enjoy your independence.
You Are the Owner of Your Home.
A common misconception of reverse mortgages is that the lender takes ownership of your home. This is false. You continue to maintain ownership of your home, as long as you comply with the terms of the loan and pay your property taxes and insurance.
You Never Pay a Monthly Mortgage Payment.
One of the most attractive benefits of reverse mortgages is that payments are made to you, as long as you live in your home -- instead of a traditional mortgage where you make a payment each month.
You Are Protected No Matter What Happens with The Housing Market.
The reverse mortgage loan is insured by the federal government. With federal insurance comes greater security. If the loan ends up amounting to more than the value of the home when sold, government insurance will cover the difference. This means that the loan will be paid in full using only the proceeds your home sells for, and no more.
You May Choose How to Receive and Use Your Money.
Each individual senior has different needs. Thus, there are different disbursement options to cover different needs. Unlike receiving a large, lump sum - the senior only pays interest on the funds they actually need each month for care, thus dramatically slowing down the consumption of equity in the home.
Social Security and Medicare Benefits Are Never Affected.
Most government benefit programs that do not test financial resources, such as Social Security and Medicare, are not affected by reverse mortgages.
COMMON MYTHS & QUESTIONS:
Will The Bank Own My Home?
No, this common myth is simply not true. Homeowners hold the title just as if they had a traditional mortgage.
Does It Affect My Children's Inheritance?
Since a reverse mortgage is government insured, if the mortgage at the time of death exceeds the value of the home - the bank does not require the estate or children to assume that additional debt (unlike a traditional mortgage), which means the heirs may inherit more money.
What If I Already Have a Mortgage?
Most people have a mortgage on their home. As long as there is the minimum 40% equity required to obtain a reverse mortgage, the existing mortgage can be paid off with the reverse mortgage - completely eliminating a mortgage payment for life.
What If I Live to Be 110 Years Old?
A reverse mortgage never 'expires' and will be in place for as long as the last, surviving senior lives in the home.
FIND OUT MORE
If you would like to find out more about how a Reverse4Care mortgage can you help you afford the in-home care you need, please email us at [email protected] or call us at (916) 294-7758 to speak to one of our customer care representatives.