HECM-for-Care Program: Case Studies

Many seniors and their families face the challenge of affording in-home care services, especially if they don’t have sufficient savings or insurance to cover the expenses. A potential lifeline for those in this situation is the Home Equity Conversion Mortgage or, (HECM)-for-Care program.

This article will highlight real-life case studies that show how a HECM-for-Care solution can help.

What is HECM-for-Care?

HECM-for-Care is a line of credit that can be used to improve the quality of life for seniors while maintaining their independence.

The program is designed to help seniors access their home equity to pay for necessary healthcare services, such as in-home care, home modifications, or rehabilitation. It’s an option for seniors looking to age in place or those who need supplemental care services but don’t have the financial resources to cover these expenses.

Real-Life Success Stories: The Power of HECM-for-Care

Let’s look at a few case studies that illustrate how the HECM-for-Care program has worked in different situations. These stories highlight the variety of ways this solution can benefit seniors and their families.

Case Study #1:

Supplementing Medi-Cal IHSS for Joel H.

Situation:

Joel M, an 82-year-old senior, suffered a major stroke in 2021. His doctor predicted that he would be confined to a wheelchair and would not regain the ability to walk. While he qualified for In-Home Supportive Services (IHSS), the program only provided a few hours per week for rehabilitation, and no additional funding was available for private care.

HECM-for-Care Solution:

By securing a $300K HECM Line-of-Credit, Joel was able to pay off his $200K mortgage. With no mortgage payment to worry about, he used the additional funds to afford more rehab hours. After a year of intense therapy, Joel regained the ability to walk with little assistance.

Additionally, Joel was able to replace his leaky roof and still had $50K left on his line of credit for emergencies. This improved his quality of life and gave him a sense of financial security.

Case Study #2:

Paying for In-Home Care for Shirley C.

Situation:

Shirley C, a 93-year-old woman with moderate to advanced dementia, required 24/7 care. Her three daughters had been taking shifts to provide this care for the past three years, which disrupted their lives significantly. They decided to reduce their care coverage to 12 hours per day and secure in-home care for the other half of the day.

However, Shirley's Social Security Income (SSI) only covered her regular living expenses, leaving a large gap to cover the $14,000 per month needed for 24/7 care.

HECM-for-Care Solution:

Shirley and her family turned to the HECM-for-Care program, securing a $791K Line-of-Credit. With part of the funds, they installed safety features and ramps around Shirley’s home. More importantly, Shirley received $14,903 per month for life, mortgage-free and tax-free. This allowed her to age in place comfortably, without burdening her daughters.

Case Study #3:

Returning Home from Assisted Living for Robert S.

Situation:

Robert S, a 73-year-old man, suffered from a range of health issues, including partial blindness and difficulty walking. His condition made it hard to live independently at home, so he had to move into an assisted living facility. However, Robert felt he wasn’t thriving in the facility and longed to return to his own home.

HECM-for-Care Solution:

Through the HECM-for-Care program, Robert was able to access a $300K Line-of-Credit. The funds allowed him to move back to his home for about two years and receive 10 hours per day of in-home care. Robert’s home became a place of comfort and independence for those two years, while the HECM funds covered the care he needed.

When the line of credit was exhausted, Robert planned to sell his home and return to a facility. Although the arrangement was temporary, it allowed Robert to live in his own space for as long as possible, significantly improving his quality of life.

A Lifeline for Seniors

The HECM-for-Care program provides a flexible, reliable solution for seniors and their families who may be struggling to afford the necessary care. Whether paying for in-home care, modifying a home to ensure safety, or covering rehabilitation expenses, the HECM Line-of-Credit can offer peace of mind and financial relief.

By working with a specialized contact at Live Better Financial, your clients can secure a HECM Line-of-Credit, and access the resources they need to live comfortably and safely at home.