Can a Reverse Mortgage Help With Healthcare Costs?

Absolutely — a reverse mortgage can be a very practical and helpful solution when it comes to managing healthcare costs in retirement.

As we age, it’s common for medical expenses to rise — from prescription medications and specialist visits to in-home care or even long-term care needs. For many seniors living on a fixed income, these growing expenses can create financial pressure. A reverse mortgage allows you to tap into the equity in your home and use those funds to help cover healthcare-related costs, without having to sell your home or take on monthly mortgage payments.

Here are some specific ways a reverse mortgage can help with healthcare expenses:

• Paying for in-home care or nursing support, so you can age in place comfortably

• Covering out-of-pocket medical bills not fully covered by Medicare or insurance

• Funding home modifications like stair lifts, walk-in tubs, grab bars, or wheelchair ramps

• Purchasing medical equipment such as oxygen tanks, mobility aids, or hospital beds

• Helping with physical therapy, rehabilitation services, or ongoing treatments

• Paying premiums for long-term care insurance

• Hiring respite care or part-time support to give family caregivers a break

• Creating a financial cushion to plan ahead for future health needs or unexpected emergencies

One of the key benefits of a reverse mortgage is that it can provide flexible, tax-free funds that you can use however you choose — including prioritizing your health and well-being. And because you don’t have to make monthly payments (as long as you meet the basic loan obligations), it helps protect your monthly cash flow while giving you access to resources you may not have otherwise had.

For many older homeowners, a reverse mortgage can bring both peace of mind and practical support, especially when healthcare becomes a growing part of the conversation in retirement.

Learn more about eligibility requirements for a reverse mortgage, situations where a reverse mortgage is best used, and common myths around reverse mortgage that we debunk with facts