Assisted living is a type of housing in which residents receive assistance and care for their daily activities and health maintenance. However, the cost of assisted living can be quite expensive, ranging from two to five thousand dollars per month, which can be challenging for families, especially when their parents are retired. If you are in this situation, there are ways to use your parents’ home to pay for their assisted living. Here are four tips to help you:
- Rent out your parents’ home: If the home is already paid off, renting it out could be a good option instead of selling it to pay for care. The income from renting can go towards the assisted living expenses. You can also consider renting a room to a friend if one of your parents wants to continue living in the home.
- Sell your parents’ home to pay for care: Although it may be difficult to part with the family home, selling it can be a good option, especially if your parents plan to cash out the home for financial security. This option is favorable when parents no longer wish to manage household chores.
- Reverse mortgage: If your parents are still paying off their home and they are not interested in selling, a reverse mortgage may be a good option for them. This will allow your parents to cash out some of their equity without selling the property. Legally, at least one parent must continue to live in the house in order to qualify for this option.
- Bridge loan: If your parents need cash while waiting for their home to sell to pay for assisted living, they can borrow money in the form of a bridge loan. Alternatively, you can sell the property to an investor if you need to cash out quickly.
Remember, there are options available to you to help your parents find the care they need. Keep an open mind and consider some of the above options, as one may be a better fit for your individual family. Ultimately, finding your parents the right assisted living and financial stability will bring you peace of mind that they are happy and safe with long-term care providers.
