For older adults considering retirement and concerned whether they will have enough money to sustain their lifestyle or pay for their care, this may be a potential solution.
Funds acquired through a reverse mortgage can be a received as a lump sum, in monthly payments, or as a line of credit. Recipients can use the money to pay off debts, supplement other income, or pay healthcare expenses. The funds can also be used in combination with long-term care insurance and other private pay options to cover the cost of some supports and services.
The most popular reverse mortgage is the Home Equity Conversion Mortgage (HECM), which is insured by the Federal Housing Administration (FHA).