Like most people, you would probably prefer to stay in your home. In fact, according to the AARP, 90 percent of seniors plan to age in place, or continue living in their home for next five to ten years. Of those that don’t plan to move, 85 percent are confident that their home will not require significant home modifications. However, one in five seniors has made significant modifications, and as your circumstances change, you may require a level of modification as well. The cost of handicap accessibility can be steep (find out how much here), but the good news is that there are financing options to lessen the burden of home renovations.

Take Advantage of a Specialized Loan/Grant

For seniors 62 years of age or older, the USDA Rural Housing Repair Loans and Grants program provides loans and grants to low-income homeowners to modify their home to improve health and safety hazards. To qualify, you must own and occupy the home and have family income below 50 percent of the area median income. The maximum amount for loans and grants is $20,000 and $7,500 respectively, but loans and grants can be combined for up to $27,500 in assistance. You can apply online or contact your local USDA home loan specialist for more information.

Common uses of the loan/grant include handicap accessible ramps, handicap accessible bathrooms (handrails, grab bars, handicap shower), safer flooring, updated windows, electrical upgrades, and new doors. In order to stay in your home as you age, you must take the proper measures to ensure your safety to avoid accidents that could lead to a hospital visit, or a stay in an assisted living facility or nursing home. Aging in place is about more than simply remaining comfortable – it is about your quality of life and well-being.

Consider a Reverse Mortgage

If you plan to live in your home for several years, a reverse mortgage could be the way to go. Reverse mortgages are designed for homeowners 62 and older, and get their name from the fact that the lender pays the homeowner. The most common type of reverse mortgage is a Home Equity Conversion Mortgage (HECM), which is a program insured by the Federal Housing Administration. Unlike a regular mortgage, you don’t make monthly payments, and instead the lender charges interest, which is added to the amount you borrowed rather than a monthly payment.

Loan amounts are dependent upon the value of the home, age of the youngest borrower, and the interest rate offered. The money received through the HECM is first used to pay off loans against the house, with the remaining up for grabs to be used as you please such as for home modifications and repairs. If you are unsure if a HECM is right for you, rest easy in that before your loan application can even be processed, you are required to meet with a government-approved reverse mortgage counselor to ensure you receive unbiased and fair information about the advantages and disadvantage of a HECM, as well as whether or not it is the best route for you.

Watch for New Legislation

Last July, the Senior Home Modification Assistance Initiative Act was proposed to improve federal programs for aging in place. The new legislation would coordinate existing federal home modification programs and provide the public with more user-friendly information on how these programs help seniors. In helping seniors take advantage of these programs to modify their existing home, the legislation would accomplish two goals: “assisting people as they age in place and expanding the supply of accessible housing that permits them to accomplish this.”

Although the legislation doesn’t provide funding directly, the coordination piece of the legislation would make it easier for seniors to find funding. According to the legislation report, there are federal programs that can be used for home modifications, but not all the resources dedicate 100 percent of their funding to home modifications, and some target only specific populations such as rural seniors. In addition, with federal programs spread out across multiple agencies, it can be hard for seniors to determine what resources are available to them. The legislation was referred to the Committee on Health, Education, Labor, and Pensions, and no further action has been taken.

Home modifications can be pricey depending on the level of complexity, and sometimes paying out of pocket isn’t an option. Consider taking advantage of available grants and loans, and contact your local Congressman about the status of initiatives to bring light to aging in place.

 

June is the primary caregiver to her 85-year-old mom and the co-creator of Rise Up for Caregivers, which offers support for family members and friends who have taken on the responsibility of caring for their loved ones. She is passionate about helping and supporting other caregivers and is currently writing a book titled, The Complete Guide to Caregiving, due out in Winter 2018.