5 Facts How FHA Reverse Mortgage Is An Option For The Long Term Care

Have you thought about the alternatives you have in use for the long term care? Have you realized, that the sources are from the insurance, form your own wallet, from the social security or from the FHA reverse mortgage? FHA reverse mortgage, also marketed under HECM reverse mortgage name, is an alternative, which a senior can use to finance a part of the long term care, for instance the wheel chair ramp to his or her home.  

1. Who Can Apply For The FHA Reverse Mortgage Program?

Because the FHA reverse mortgage program is one way to finance your senior years, the Federal Government has made the qualification easy. Almost everybody can qualify, if he or she is at least 62 and owns a home, where he lives permanently.

Some mobile homes have difficulties with the qualification. There is no need to present any income nor credit statements, because the loan is always taken against the home equity. If a senior has a usual mortgage left, he must pay it away with the reverse loan. There is no payments during the loan running time, but the borrower must pay the property taxes and insurances. The ownership will stay at the original owner. Totally three owners can be borrowers, but all must fulfil the qualifications.

2. A Senior Can Pay The Long Term Care Insurance With The FHA Reverse Mortgage.

The insurance is a handy way to cover the long term care costs. If a senior has difficulties to pay the insurance, he can think to take the FHA reverse mortgage and to pay the needed insurance with that. A good plan is to pick the monthly payments, which cover the insurance bills. A senior has to remember that if he plans to trust in Medicaid program, the maximum amount of own assets is only $ 2.000, before he can qualify.  

3. What If You Do Not Know, How Much Are The Care Costs?

This is a good question. In most cases, how a retired person could forecast, what are his or her long term care costs per year, for instance, and how long he will need the care? This program is very natural. But the FHA reverse mortgage payment alternatives has one option, a credit line, which fits to this need.  

4. A Senior Can Include Other Costs Into The Same Package.

The long term care costs cannot be the only cost which a senior will pay with the reverse loan. Actually the lender is not interested about how a senior will use the money. The more important thing is, that a reverse loan program fulfils the financial needs of a senior.  

5. A Senior Can Keep The FHA Reverse Mortgage Program As A Reserve Plan For The Future Sudden Needs.

This can be very clever especially, if a senior knows, that he will not have any other source of an extra money. The home equity is usually a good investment and the home prices will increase over a long period of time. This adds equity and makes it possible to tap even more money from the equity for the long term care, for instance.

Juhani Tontti, B.Sc., Marketing, Recommends Seniors To Use FHA Reverse Mortgage Or HECM Reverse Mortgage To Pay For The Long Term Care. Visit: Reverse Mortgage Costs