Reverse Mortgages and Retirement in Washington State
How a reverse mortgage can help pay for senior care while one spouse stays at home, and independent lending professionals you can contact directly.
Decisions about a home are often tied to how retirement and care will be paid for.
Sometimes selling is the better option. In other cases, borrowing against the home lets the owner keep living in it.
Real Property Planning lists independent lending professionals below who can explain the options.
A reverse mortgage can help pay for senior care when one spouse needs to move into a memory care facility, skilled nursing home, or assisted living community and the other stays at home. This use is often overlooked.
For many retired couples, the home is their largest financial asset. A reverse mortgage lets the spouse at home convert part of that equity into tax-free funds and keep living in the house without making monthly mortgage payments. The funds can go toward the other spouse's care facility, property taxes, homeowner's insurance, and everyday living expenses.
Using a Reverse Mortgage to Fund Senior Care
How It Works for Couples
A common reason seniors take out a reverse mortgage is that one spouse needs to move into skilled nursing or assisted living. When both spouses are on the reverse mortgage agreement and one moves into a care facility, the spouse at home can keep drawing on the funds. If the spouse in care dies, the other spouse continues to live in the home.
Flexible Payment Options
Reverse mortgage proceeds can be paid out in several ways. Monthly payments provide steady income that can cover the monthly cost of a care facility. A line of credit suits long-term care costs that are hard to predict, and under many plans the unused credit grows over time, which leaves more available as needs change.
Important Considerations
If a borrower is away from the home for more than 12 consecutive months in a healthcare facility and there is no co-borrower living in the home, the loan may become due. That is why the loan should be set up before a care need arises, with both spouses as co-borrowers whenever possible. Medicaid eligibility rules for reverse mortgage borrowers are also complex, so talk with a financial planner and an elder law attorney before proceeding.
The borrower must also keep paying property taxes, homeowner's insurance and any association dues. Falling behind on those is the most common reason reverse mortgages go into foreclosure. See reverse mortgage foreclosure for unpaid property taxes.
When the Loan Comes Due
A reverse mortgage generally becomes due when the last borrower dies or moves out, and the house is then often sold to repay it. Heirs can also pay it off and keep the house, and if the house is worth less than the loan, selling it for at least 95 percent of the appraised value settles a federally insured loan. See what happens to a reverse mortgage after a death, and for a parent who is staying put, whether they can afford to stay home.
Featured Providers
Daniel Bartel
Retirement Mortgage Specialist · Reverse Mortgage Lender · C2 Financial
Daniel specializes in helping seniors evaluate reverse mortgage options as part of a larger retirement plan. His approach is educational and consultative — focused on helping clients understand their options so they can make informed decisions. As a Registered Social Security Analyst, he also helps clients consider how real estate and financing decisions fit into their broader retirement strategy.
Jeff McGinnis
Senior Loan Officer · CrossCountry Mortgage
I'm a seasoned mortgage lending professional with over 25 years of experience in the industry. I have a proven track record of success and am known as one of the top producers in my field. With a deep understanding of the lending landscape and a passion for helping clients achieve their homeownership goals, I've established myself as a trusted and knowledgeable resource for borrowers.
How This Fits Into the Bigger Picture
A reverse mortgage is one option among several.
Some homeowners sell. Others borrow against the home. Some do both as part of a longer plan.
This page describes the options; it does not favor any of them.
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Professional Disclosure
Real Property Planning is an educational and connection hub. It does not provide legal, tax, accounting, financial, brokerage, or appraisal services. Professionals referenced on this site are independently licensed and operate through their own separate businesses. Real estate brokerage services are provided by David Stein, a licensed Washington broker, through eXp Realty. Appraisal services are provided by David Stein through Stein Appraisal. Read the full disclaimer.