Skip to content

#74 Using a reverse mortgage to finance home renovations


David Garrison
Home Equity Retirement Specialist
NMLS # 1595194
Serving the State of Indiana
p (317) 644-2595 c (765) 516-0130
e [email protected]

2169 East Rutland Lane, Martinsville, IN 46151
Corporate NMLS #1025894

While your original plan was to move to a smaller home with fewer outdoor grounds to maintain, no stairs, and senior-friendly baths, you’ve simply given up. The bidding wars and the incredible “need for speed” in the buying process for today’s real estate have simply scared you away.  Instead, you’re now resolved to remodel the kitchen and bath in your present home. In later years, if needed, you’ll install a stair lift. 

Financially, you feel prepared for the initial costs of the renovations (in the process of all that home shopping, you cashed in several investment accounts and have been stockpiling cash reserves). Now that you won’t be selling the home, however, you will need to borrow money to finance the later stages of the work.

What you’ve been discovering, much to your dismay, is that all those supply chain issues and labor shortages you’ve been hearing about on the news are very real. You’re being told by contractors that you must be prepared for long delays and rising costs (even quotes might not be “locked in”, you’ve been warned). 

Now that you’ve made the decision to “age in your own place”, a reverse mortgage line of credit might be a good way to finance those irregularly-timed renovation expenses, using the equity you’ve built up in your home. Set up as a line of credit, your reverse mortgage will allow you to draw from the equity as needed to pay for each stage of the renovation.  Meanwhile, the unused portion will be growing at the same rate the mortgage balance is increasing.

Your reverse mortgage home equity line of credit equity will be there to help you ride out the ups and downs of supply chain and labor shortages, while you redesign your surroundings for “staying put.”