Can you use a reverse mortgage to pay for assisted living?

Start with the actual loan terms: reverse mortgages are secured loans with interest and fees, not public care benefits. For a Home Equity Conversion Mortgage, principal-residence, absence, tax, insurance, and maintenance requirements apply. A spouse's status on the loan can materially change the result.

When it may be considered: a borrower remains in the home and uses proceeds for in-home care, or one member of a couple remains in the home and the documents protect that person's occupancy. Do not assume a spouse is protected merely because they are married.

Before using it for assisted living:

• Ask the servicer for written guidance on what happens if each borrower leaves the home for medical care and how the length of the absence affects repayment.
• Confirm the status and rights of a spouse who is not a borrower.
• Get a written payoff statement and compare accrued interest, mortgage insurance, closing costs, and remaining equity.
• Compare a sale, rental, other credit, and available benefits without assuming any one choice is best.
• Consider tax, estate, and ALTCS consequences with qualified advisers.

The federal Consumer Financial Protection Bureau reverse-mortgage guide explains risks and borrower obligations. HUD provides a housing counselor search. Because the home may also affect ALTCS planning and estate recovery, get individualized elder-law and financial advice before acting.