Should we get a home equity line of credit in order to pay for nursing home care until my parent's home is sold?
Should we get a home equity line of credit in order to have money to pay for a nursing home, until we can get the parent's home sold?
There is no question that selling a house in the current real estate market is a challenge. Many people find themselves in your situation when loved ones need to move out of the house into a long term care facility, and their house is their only asset.
A home equity line of credit is an option, if your parents can qualify. To qualify, your parents will need to demonstrate that they have enough income to cover the monthly payments. They also need to have a good credit score, which many seniors lack. Sometimes, a local bank where your parents have been good customers will be able to structure a loan. Or if you are willing to co-sign the loan, your bank may accept that.
Because this situation is becoming more common, there are new programs springing up to help. Some realtors will guarantee to buy the house for cash if they cannot sell it within a predetermined time period. Other companies aggregate relatives and friends to jointly borrow the money. These programs may be available in your area.
I know that you do not have to use your parents home equity to pay for care. If they have $2000 or less in the bank or in assets, then they can qualify for Medicaid or MediCal. You could also rent the home and use the profits towards the care.
I would not sell the home the money will go so very fast rent it out to ofset some of the cost get them qualified for medicaid to help with the expenses
Stay Connected With Caring.com
Get news & tips via e-mail