Using Reverse Mortgage Funds to Repair a Property
With a reverse mortgage, borrowers can tap into their home’s equity to receive money either in the form of monthly payments, a large lump sum, or a combination of both. There are certain restrictions for reverse mortgage qualification, namely that the borrower(s) must be 62 years of age or older. This mortgage program was designed to help senior homeowners access money to help them pay for a variety of expenses, including home repairs and maintenance.
Senior homeowners face a unique set of challenges and often have a special set of needs when it comes to repairing or remodeling their homes. The biggest challenge has to do with income. Many American senior citizens live on fixed incomes, making it difficult for them to pay for unexpected repair bills or much-needed home remodeling projects. For example, a senior homeowner who has mobility issues may need to have a wheelchair ramp constructed, but their finances may make this difficult to complete. A reverse mortgage can help pay for such a project.
Other possibilities include repairing major home systems like electrical, plumbing or HVAC. Large home appliances like dishwashers, refrigerators, ovens, washing machines and dryers can also be purchased with the money from a reverse mortgage loan. Since many senior homeowners have properties that are older, these systems and appliances are more likely to need attention than those found in a newer home, so a reverse mortgage may make a lot of sense for these specific needs.
Older homeowners may also face the challenge of living with an elderly spouse who is unable to work or has been laid off from their job. With a reverse mortgage, the homeowners may be able to cover costs often associated with homeownership without the pressure of the older spouse having to find work. In a tough economy, this can be especially beneficial.
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Other home-related uses for reverse mortgage proceeds include…
- A bathroom remodel to make the tub/shower more accessible.
- Installation of a motorized stair lift chair.
- Installation of hand rails throughout the home’s hallways to help the homeowner prevent falls.
- Repairs or replacement of roof, gutters and other exterior components.
- Replace or repair windows and doors.
- Restore a home’s foundation.
- Widening doorways and lowering countertops to accommodate a wheelchair.
The best thing about a reverse mortgage is that the proceeds can be used for anything. So even if you do not need to complete home repairs or remodels, a reverse mortgage may still be a good option for funding other expenses. To learn more about reverse mortgages and the risks and benefits associated with them, contact a reputable mortgage lender serving your area or talk to an experienced financial planner. A reverse mortgage isn’t for everyone, but for those who qualify, it can be a great opportunity to improve lifestyle and maintain financial stability.