By guest blogger Beth Paterson, Certified Reverse Mortgage Professional, NMLS #342859, Reverse Mortgages SIDAC, A Division of Greenleaf Financial, NMLS #173899
Liberty Oxygen and Medical Equipment understands the financial needs of our customers can be challenging. We recently reconnected with Beth Paterson with Reverse Mortgages SIDAC to learn more about the options available to the seniors in our Minneapolis and St. Paul metro area communities.
Most Minnesota seniors want to stay in their homes and remain independent yet often believe they can’t for a number of reasons. Having access to medical equipment or modifying a home could make your wish of remaining in your home a reality by providing a safer, more comfortable environment. Common oxygen and medical equipment needs, including daily living aids, will enable your senior loved one stay in their home longer. These equipment items may include:
- Mobility equipment – a walker, wheelchair, rollator or power mobility scooter may be needed to help your senior loved one get around easier
- Access ramp – this will allow easier access in and out of the home
- Lift Chairs – move to several different standing and sitting positions, including the Trendelenburg postion
- Hospital bed – to provide a more comfortable night’s sleep
- Oxygen equipment – such as nebulizers, CPAP masks, machines and supplies
- Aids for daily living – aids that make life that much easier, including compression stockings or braces/supports
Everyday activities such as bathing, toileting, cooking, and getting up and down the stairs can be made easier to perform by adapting the home or having well-fitting medical equipment. Modifying the home can be as simple as installing grab bars in the bathrooms or touch buttons for turning lights on and off to installing lifts to access another level of the home.
By assessing medical equipment from Liberty Oxygen and Medical Equipment and modifying the home, one can live safely, comfortably and remain independent. But how is this affordable?
Medicare is more complicated to receive and seniors are going without because the money needed to improve your life isn’t available. A line of credit or lump sum draw from a Home Equity Conversion Mortgage (HECM) may be the solution beyond what Medicare will cover. The HECM was first insured in 1989 by FHA for the purpose of providing a valuable financing alternative for senior homeowners to help them remain in their home and have access to funds by withdrawing a portion of their home equity.
A HECM, commonly known as a reverse mortgage, is a special loan allowing homeowners 62 years of age and older to remain in their home with security, independence, dignity, and control. Similar to a conventional loan where a lien is placed on the home yet the borrower retains ownership.
Bob, a Minnesota senior, wanted to stay in his home. He was approved for a reverse mortgage and with a portion of the proceeds he was able to modify his home by having the doorways widened to accommodate a wheelchair and had grab bars installed. Bob is thrilled that he will be able to remain in his home for years to come and have the funds needed for future medical equipment needs also.
With the flexibility of making payments toward the loan balance, or NOT making a mortgage payment at all, the HECM reverse mortgage could provide the cash for immediate needs or future needs. Note: borrowers are still responsible for paying property taxes, hazard insurance and maintenance of the home.
To qualify for a reverse mortgage, borrowers:
- Are at least 62 years or older
- Own their home with enough proceeds to pay off any current mortgages or liens
- Meet financial assessment requirements demonstrating their ability and willingness to pay property taxes and insurance into the future.
In some circumstances a Life Expectancy Set Aside may be required to cover the property taxes and insurance. The reverse mortgage loan amount is based on the age of the borrower, their home value and an Expected Interest Rate.
Due and payable when the home is no longer the primary residence, usually when they move, die or sell, a reverse mortgage can allow one to remain in their home and use the equity for their needs or wants now. As a non-recourse loan, there is no personal liability to the borrower or their estate. If the home is sold for more than the loan balance then the borrower(s) or their heirs keep the difference.
The HECM Line of Credit funds, which have a growth rate on unused funds, can provide some safeguards for your future. Additionally, you could change your payment plan option to receive tenure or term monthly payments; this can benefit you as your needs change.
One day, reverse mortgage borrower Anna and her daughter were sitting at the kitchen table and Anna shared that before their reverse mortgage she and her husband had struggled living just on their Social Security. As they were sitting there looking at newspaper ads, Anna exclaimed, “Look, Depends are on sale, I can now stock up.”
Do you or a senior loved one need medical equipment or wish to modify your home to continue living there safe, comfortable and independent? What about daily living aids that make life that much easier? Consider a HECM to help you finance your medical equipment needs from Liberty Oxygen and Medical Equipment.
If you are in need of medical equipment, daily living aids or concerned about your CPAP equipment’s fit or function, call or stop by any of the eight-metro area Liberty Oxygen and Medical Equipment locations and one of the expert staff members can assist you with your needs.
© 2017 Beth Paterson, Certified Reverse Mortgage Professional (CRMP), NMLS #342859
Reverse Mortgages SIDAC, a Division of Greenleaf Financial, LLC, NMLS #173899
761-762-9648 www.RMSIDAC.com
Reverse Mortgages SIDAC, A Division of Greenleaf Financial, and Liberty Oxygen and Medical Equipment are not affiliated financially and do not exchange your personal information.
Information is current as of date post published, program is subject to change in the future. Contact us for current information, 651-762-9648.
The information provided is not from, or approved by HUD, FHA, or any US Government or Agency.
Tags: HECM, lift chair, lift chairs, medical equipment, medical equipment Minneapolis, medical equipment MN, medical supplies, medical supply store Minnesota, mobility equipment, oxygen, purchase, Reverse Mortgages