Renovating a home to age in place can be the silver lining among the increased health risks and residential hazards that afflict homeowners in their golden years. Most baby boomers — 80% of whom own their homes outright — would prefer aging in their current residences rather than downsizing or moving into an assisted living facility. Now holding $18 trillion in home equity, boomers are disinclined to sell, favoring home renovations to improve safety and mobility.
Renovation loans, like FHA’s 203(k) and Fannie Mae’s HomeStyle, are underutilized gems that can fund essential home upgrades. Surprisingly, only a few mortgage pros specialize in these loans. Similarly, reverse mortgages are misunderstood but offer another avenue for seniors to tap into their home equity. With only 200 Certified Reverse Mortgage Professionals in the U.S., many eligible borrowers remain uninformed or misinformed.
Since the 60-plus demographic is set to expand to 32% of the adult population within a decade, this represents a largely untapped segment of new borrowers. LOs well-versed in loan products that enable seniors to live comfortably and safely in their cherished homes could be the cream that rises to the top.
Todd Woodcock Certified Reverse Mortgage Professional, CRMP
