{"id":9500,"date":"2016-06-21T07:00:25","date_gmt":"2016-06-21T12:00:25","guid":{"rendered":"https:\/\/www.senioradvisor.com\/blog\/?p=9500"},"modified":"2016-06-07T12:42:52","modified_gmt":"2016-06-07T17:42:52","slug":"how-to-leverage-your-house-to-pay-for-assisted-living","status":"publish","type":"post","link":"https:\/\/d30braiqprupoq.cloudfront.net\/blog\/2016\/06\/how-to-leverage-your-house-to-pay-for-assisted-living\/","title":{"rendered":"How to Leverage Your House to Pay for Assisted Living"},"content":{"rendered":"

How to Leverage Your House to Pay for Assisted \"HowLiving<\/h1>\n

Assisted living is a popular option for older adults who need help with daily activities, but it\u2019s increasingly expensive. The national median price tag for assisted living in 2016 is $43,539 per year, according to insurer Genworth\u2019s annual survey<\/a><\/strong>. Most people move into assisted living on short notice after a change in mobility or health status, so the time to come up with funds is often short. If the combination of cost and time pressure has you in a bind, here\u2019s how to leverage your house to pay for assisted living.<\/p>\n

If you own your home outright or have a substantial amount of equity in it, you have two primary options. You keep the house and take out a reverse mortgage on it or you can sell your home and use the proceeds to pay for assisted living.<\/p>\n

Using a bridge loan until\u00a0you sell your home<\/h2>\n

In a hot real estate market, you may be able to sell your home quickly, without having to invest in major upgrades or repairs to get it market ready. When the market is slow and your home is unlikely to sell right away, a bridge loan can allow you to move into assisted living before your home is sold.<\/p>\n

Bridge loans are offered by lenders who often specialize in working with senior homeowners. When you\u2019re approved for a bridge loan, the lender typically pays your assisted living community directly. Once your home sells, the bridge loan is paid off from the proceeds, and the remaining money is yours to pay for your care.<\/p>\n

Keeping your home and taking out a reverse mortgage<\/h2>\n

Reverse mortgages<\/a> are a better solution when one person in the family is moving to assisted living while others remain in the home. These loans, also called home equity conversion mortgages (HECMs), must comply with extensive federal rules. Borrowers must be at least 62 years old and must meet with a qualified loan counselor before taking the loan.<\/p>\n

The upsides to a reverse mortgage are<\/h3>\n