How can I borrow money to remodel my parents' home without putting their home in jepordy?

2 answers | Last updated: Nov 20, 2016
A fellow caregiver asked...

How can I borrow money to remodel my parents' home without putting my parents' home in financial jeopardy?



Community Answers

Mark schmidt answered...

You could investigate a reverse mortgage for your parents.  It works much like a traditional home equity loan (which is often used for repairs) but there are no monthly payments to make and your parent's don't need to qualify based on their income or credit history.  Contrary to popular misconception, your parents would not be giving up title to their home by doing a reverse mortgage.  Like any loan against the house, the balance owed must be paid back when the home is eventually sold.  Reverse mortgages are not for everyone but might be a good option in your parent's situation. 


Sbmd answered...

I was wondering the same thing. What a wonderful question. Mark...it seems that you have some insight into this matter. I wanted to use $500k (which I dont have) to add an additional story to my parents' home. I am fortunate enough to move to a higher salaried position next year and want to use this extra money to help "finance" an improvement project on their house for them. I was hoping to find a way to pay back this $500k in the form of monthly payments over the course of say 20-30 years or whatever term I could find with the best interest rates. Any insight?