If you are beginning to consider your senior living options, you may be wondering how to finance the services. After all, while senior housing communities can place you in a better frame of health and give you access to unique amenities, they do come with a price tag that can appear to be out of reach for many seniors.
CaraVita Village in Montgomery, Alabama, understands the value of independent living, and we would like to provide you with some advice and suggestions on how to pay for senior housing.
What’s Your Budget?
The first step to learning how to pay for senior housing comes by crafting and understanding what your budget is. While affording senior living may seem out of reach at first, your budget may free up once you factor in the cost of utilities and maintenance. While homeownership can include a mortgage payment, taxes, and home repairs (among other expenses), services, meals, maintenance, and transportation are typically included in the monthly cost of senior living communities.
CaraVita Village is an all-inclusive independent living community that provides our residents with cruise ship style dining, and transportation in a community van or car. We cover the cost of utilities and offer a variety of on-site benefits and features. Factoring these things can free up your budget significantly.
Selling Your Home and Bridge Loans
Typically, when faced with the question of how to pay for senior housing, many will seek to sell their homes. The cost of a mortgage payment can weigh down a budget, and once you move into senior living, there would be no need to retain your property. The problem that occurs here is the lengthy process of selling a home. Finding a buyer can be difficult, and after that, the process may take anywhere from six to ten weeks. During the lengthy process of selling a home, the homeowners are typically asked to leave the house for staging purposes. If you are looking to move into an independent living community sooner rather than later, there is an option called a bridge loan.
Bridge loans are short-term loans (typically up to one year) that are secured by your home. These loans can provide you with much-needed capital and can be paid off once the home sells. However, the downside to this method is that if the house does not sell quickly, you would be responsible for a mortgage payment and a loan payment. If you are considering this or any type of loan, we suggest speaking with a financial advisor to ensure this is the right course of action for you. The purpose of transitioning to a senior housing community is to be able to fully enjoy your retirement, don’t let financial stress hold you back!
Creative Ways to Afford Senior Housing
Most older adults pay for senior housing and independent living through private funds. Typically, these funds can include contributions from retirement accounts, any income generated by investments, such as interest and dividends, or liquidated assets.
At CaraVita Village, we have another option that can answer the question of how to finance senior housing that comes in the form of shared living. Shared living residents are given a two-bedroom, two-bathroom apartment suite to share, which makes it possible to join our community at a fraction of the cost! This living option gives you access to everything our resort-style community has to offer.