How a Los Angeles Senior Paid for In-Home Care With Home Equity
Covered part-time caregiving costs with home equity while staying independent at home.
An elderly Los Angeles homeowner had lived in her neighborhood for more than thirty years and knew every shopkeeper on her block, but a recent fall had made her family worry about how she was managing on her own. She wanted to remain independent, yet she needed part-time caregiving assistance to do so safely. Hiring help a few days a week felt far more appealing than leaving the home and routine she loved.
The challenge
Hiring in-home help is an ongoing cost, not a one-time expense, and her fixed income could not fully absorb several visits a week. Moving to an assisted-living facility would have cost considerably more and was not what she or her family wanted. She needed a way to pay for steady support while staying in the home that kept her connected to her community.
The approach
She used a reverse mortgage to provide the resources needed to cover caregiving costs while continuing to live in familiar surroundings, having first completed the required HUD counseling.
The outcome
The funds made part-time in-home care affordable, allowing her to stay independent at home rather than relocate.
Key results
- Funded part-time in-home caregiving
- Stayed independent in familiar surroundings
- Avoided a move to a facility
- No required monthly mortgage payment
Frequently asked questions
Can a reverse mortgage pay for in-home care?
Yes. Proceeds can be used for caregiving, medical costs, or home modifications that support independence. Keep in mind the loan becomes due if the borrower moves out of the home for more than 12 consecutive months, such as into long-term care.
What if I later need to move to assisted living?
A reverse mortgage becomes due when the last borrower no longer lives in the home as a primary residence for more than 12 months. The home is then typically sold or refinanced to repay the loan, and any remaining equity belongs to you or your heirs.
Can family members be paid as caregivers using reverse mortgage funds?
There is no rule against using the proceeds to pay a family caregiver, since the funds are yours to use as you choose. It is wise to put any such arrangement in writing and check with a tax advisor, because payments to a relative can carry tax and benefit implications.