Aging in Place Financing Options

Grants and Government Programs: Help That Does Not Have to Be Repaid

Help that does not have to be borrowed is worth checking before any loan. A grant is money given for a stated purpose rather than lent. Government programs also offer some low-cost loans.

One federal program speaks directly to older rural homeowners. The USDA's Section 504 Home Repair program "provides loans to low and very-low-income homeowners to repair, improve or modernize their homes or grants to elderly very-low income homeowners to remove health and safety hazards."

The requirements on that page include living in an eligible rural area, being unable to obtain affordable credit elsewhere, and having household income within county limits. Grants also require the applicant to be age 62 or older, with income within the very-low limit for the county, and grant money must be used to remove health and safety hazards. As the page read in October 2026, the loan interest rate is fixed at 1%, and grants have a lifetime limit of $10,000. Local Rural Development offices accept applications year round.

Families also ask about other federal programs. These include HUD's Title I Property Improvement Loan program, the VA's Home Improvements and Structural Alterations (HISA) grant for eligible veterans, and the Department of Energy's Weatherization Assistance Program. The agency that runs each program publishes its current rules. State and local programs differ from place to place. The Eldercare Locator and the local Area Agency on Aging are common starting points for finding them.

When the Cost of Help at Home Keeps Coming Back

Home changes are a one-time cost; help at home is a recurring one, and it is often the larger part of the budget. Families looking at ongoing care commonly ask about Medicaid Home and Community-Based Services (HCBS) waivers, which states use to fund some in-home and community care for eligible people. Each state runs its own version, with its own eligibility rules, covered services and waiting lists. The local Area Agency on Aging or the state Medicaid office can explain what exists in a given state.

The NIA page also lists other ways to cover help at home, including support from family, friends and neighbors, volunteer visits, adult day care and respite services. It notes that home-based services "can be expensive, but they may cost less than moving into a residential facility."

For a household on a fixed income, the recurring cost of help at home is the part of the budget that deserves the most attention.

Property Tax Relief and Benefits Programs

Cutting what goes out each month can make room for aging-in-place costs without any new debt. This approach is easy to overlook, because it does not bring in a lump of cash.

Property tax relief takes two main forms where a state or locality offers it. An exemption lowers the tax bill. A deferral postpones the bill while the owner keeps living in the home. Federal law lists property tax deferral among the "other home equity conversion options" that a reverse mortgage counselor must discuss, under 12 U.S.C. § 1715z-20(f)(2). The government that runs a deferral program sets its rules, including when the deferred taxes must be repaid.

Benefits programs can also help with fixed costs. Energy bill help, such as the Low Income Home Energy Assistance Program, is one example. Benefits.gov is a federal portal for searching programs by situation. The NIA page also points families toward local offices on aging, social services, health care providers and social workers.

A new loan may interact with means-tested benefits, which are benefits based on income or assets such as SSI. The answer depends on the program and the household, and a benefits counselor can explain how the rules apply.

Reducing what goes out each month is a real option, even if it does not feel like one at first.

Using Home Equity: Loans, Lines of Credit, and Cash-Out Refinancing

Home equity is the difference between what the home is worth and what is still owed on it. A house worth more than its mortgage holds equity that can be borrowed against. The family learning about cash from your home without selling usually meets three tools first.

Home equity loan. A lump sum, repaid in fixed monthly payments over a set term. The home is collateral, meaning it secures the debt, so missed payments can lead to foreclosure.

Home equity line of credit (HELOC). A revolving credit line secured by the home. The borrower draws what is needed and repays it, often at a variable rate that can change over time.

Cash-out refinance. The existing mortgage is replaced with a new, larger one, and the homeowner receives the difference in cash. The monthly payment typically rises.

All three require the borrower to qualify, based on income, credit and equity, and all three carry a monthly payment. For a homeowner on a fixed income, that payment is the central tradeoff: a loan that pays for a ramp today still has to fit inside next year's budget. This tension sits at the heart of being house rich, cash poor.

Each of these tools can work, but each one adds a payment that has to fit inside the household's monthly budget.

Reverse Mortgages: How They Work and What They Involve

The question many families bring here is whether a reverse mortgage really means no payments. The answer turns on what the borrower still owes and when.

A reverse mortgage lets a homeowner 62 or older borrow against home equity without monthly mortgage payments. The CFPB calls the Home Equity Conversion Mortgage (HECM) the most common type. According to HUD, the HECM is the only reverse mortgage insured by the federal government and is available only through an FHA-approved lender.

These obligations come with every reverse mortgage:

• The balance grows. The CFPB states that "Interest and fees are added to the loan balance each month and the balance grows." As the balance rises, equity falls.
• The borrower has duties. The borrower must use the home as a principal residence, which is where they live most of the year. They must also pay property taxes and homeowners insurance and keep the house in good condition.
• The loan comes due. It comes due when the last surviving borrower or Eligible Non-Borrowing Spouse dies, sells the home, or no longer lives there as a principal residence. Per the CFPB, it may come due sooner if the taxes, insurance or repairs are not kept up.

What "Eligible Non-Borrowing Spouse" means. The CFPB uses this term for a borrower's spouse who is not a co-borrower on the loan but qualifies under HUD's rules to stay in the home after the borrower has died. This matters most in households where one spouse is younger or was not named on the loan.

Under 12 U.S.C. § 1715z-20(d)(9), a HECM pays "based upon a line of credit," monthly over a chosen term, monthly over the borrower's tenure, a combination of monthly payments and a line of credit, or "on any other basis that the Secretary considers appropriate." A lender pays under the loan's terms, subject to its approval.

Before a HECM, federal law requires counseling from an independent third party, under 12 U.S.C. § 1715z-20(d)(2)(B). HUD lists a counselor roster and the number (800) 569-4287. Federal rules limit the origination fee, and the lender discloses it.

A reverse mortgage is a loan secured by the home. It is not income, a grant or a government benefit. In the CFPB's words, "A reverse mortgage loan is not free money." For the mechanics, see how a reverse mortgage works.

Comparing the Options: What Each One Involves and What It Trades

Setting the options next to each other shows where they differ.

The fit depends on income, equity, age, what the money is for, and how long the homeowner plans to stay. A HUD-approved housing counselor or a nonprofit housing counselor can walk through these options neutrally. The FTC notes that HECM counselors must explain alternatives such as a home equity loan, refinancing, or selling and downsizing.

Questions Worth Raising Before Choosing a Financing Path

These questions work well when brought to a counselor's office. They are not a test to finish alone at the kitchen table.

• What is the money for? A one-time change, ongoing care, or both.
• How much equity is there? Is a mortgage balance still owed on the home?
• What does the household bring in each month? Could that income carry a new monthly payment?
• How long will the homeowner stay? A short stay and a long one change the math.
• Is help available without borrowing? Grants, Medicaid waiver services or local programs might cover part of the cost.
• Would a loan affect income-based benefits? This applies to SSI, Medicaid and others.
• Who else has a stake in the home? A spouse, a co-borrower or an adult child may be affected by each option.

The last two questions matter most for reverse mortgages. Federal law requires HECM counselors to discuss "the financial implications" of the loan. They must also disclose that it "may have tax consequences, affect eligibility for assistance under Federal and State programs, and have an impact on the estate and heirs." That requirement appears in 12 U.S.C. § 1715z-20(f). For a household that may later rely on Medicaid for care, how reverse mortgage money is received and held is one of the points a counselor can walk through.

Where to Find Help and Learn More

What follows is a starting point, not a complete list. Help varies by community.

• Eldercare Locator. A federal resource that connects older adults and caregivers to local services.
• Area Agencies on Aging. The NIA notes these offices "will be familiar with resources available in your community."
• State Medicaid offices. For questions about Home and Community-Based Services waivers.
• HUD-approved counselors. The HUD HECM page links its counselor roster and lists (800) 569-4287.
• Benefits.gov. A federal portal for searching benefit programs.
• USDA Rural Development. Local offices handle Section 504 applications.
• The VA. For veterans asking about HISA or other home changes.
• State housing finance agencies. These agencies run their own programs.

Golden Roof Equity also publishes guidance on balancing a fixed income against a home worth keeping, including how to stay in your home after retirement.