During most of our lifetimes, we will either be a caregiver for a parent or elderly relative, or we will need someone to care for us when that time comes. Sacrifices made by caregivers are manifold: personal money spent, time away from family and/or work, lost wages, etc. This can add up to a lot of financial and emotional stress, which can be overwhelming for some caregivers and their families.
It is estimated that services rendered by unpaid caregivers represent over $425 billion per year. Increasingly, Alabama reverse mortgage borrowers are using their FHA Home Equity Conversion Mortgage (or HECM) to alleviate their caregiver’s financial and emotional stress. Funds generated by reverse mortgages can be used to employ an outside home health care professional to come in on a part-time of full-time basis. In some circumstances, funds created by reverse mortgages can even be used to compensate a friend or relative for serving in a caregiving capacity.
The HECM reverse mortgage program was created to help seniors get some of the money back that they paid into their home over the years. Many feel that using a reverse mortgage to help your caregivers is a caring thing to do.