More neighborhoods are forming preservation associations, and more cities and states are developing incentives to support preservation and rehabilitation of historic homes.

Financing home repairs and improvements can be a real problem for many senior adults.  It would typically require a home equity or home improvement loan.  First they must qualify, which may not be possible for senior’s who’s sole income is from Social Security.  Second, they must make monthly payments which could cause financial hardship. 

Robert Bruss is a real estate attorney and syndicated columnist.  A home owner asked him the following question:
“I am 68 and a homeowner who is “property rich and cash poor” as you say.  My $400,000 house needs a new roof that would cost $15,000 to $20,000.  My daughter says I should take out a home equity loan but I don’t know how I will afford the payments on my limited retirement income.  I don’t want to touch the $35,000 I have in CD’s except for an emergency.  What would you do?”

Response from Robert Bruss:
“Spending up to $20,000 of your cash reserves on a roof would be the least costly of alternatives, but it will leave you with depleted liquid reserves.  You need increase monthly income to fully enjoy retirement.  Consider a reverse mortgage that never requires repayment until you sell your home, move out for more than 12 months or die.
Meanwhile you can enjoy any combination or (1) monthly lifetime income, (2) lump sums as you need them and /or (3) a credit line or (4) a combination of the above.
A home equity loan requires monthly payments.  If you are already short of cash, making monthly payments will further deplete your cash.”

Michigan reverse mortgages are the perfect means to finance home repairs and improvements with no credit or income qualifying, and no monthly payments to worry about.