Reverse Mortgage: Long-Term Care

When saving for retirement and calculating personal expenses, long-term care should not be overlooked.  However, it can be hard to know how much may be needed because the amount of care varies by individuals.

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Some seniors may not need any care, some will require limited care, while others may need significant help.

According to new research, about 20% of 65-year-olds will never need any long-term care for the duration of their lives, and another 20% will need only minimal support. However, at the same time, about 25% will need significant help for more than three years. Another 38% will fall somewhere in the middle, needing a moderate amount of care for one to three years, the study shows.1

While it can be difficult to plan for unknown costs, senior homeowners can consider a reverse mortgage loan when planning for long-term care.  A reverse mortgage allows homeowners 62 and older access to a portion of their home’s equity as cash. Borrowers do not have to repay the loan as long as the home is their primary residence, pay property taxes and insurance, and maintain the property according to the Federal Housing Administration (FHA) requirements.2

With a reverse mortgage, the homeowners can continue to live independently in their home.  The proceeds from a reverse mortgage can be used to pay for long-term care, make modifications or improvements to their home (making it safer and more accessible) which can allow them to age in place for the foreseeable future.

A reverse mortgage may also assist with long-term care if one of the spouses needs immediate care and help with expenses associated with in-home skilled care.

If you’re interested in learning how a reverse mortgage may help with long-term care, call 1-800-976-6211 to speak with a licensed loan officer. Or to begin an estimate of your eligibility try our free reverse mortgage calculator.



2You must live in the home as your primary residence, continue to pay required property taxes, homeowners insurance, and maintain the home according to FHA requirements. Failure to meet these requirements can trigger a loan default that may result in foreclosure.