How to pay for the monthly costs of a senior living community is always a big factor in a family’s decision to move a loved one into a safer, better environment. Before rushing to sell a home that may need work at the first lowball offer, or selling stock far below an acceptable price, or cashing in a CD that hasn’t matured—or getting a credit card cash advance—take a minute to understand your payment options. (And contrary to popular belief, reverse mortgages are not a perfect option for folks looking to move into a senior living community, because often a person must live in a home to obtain a reverse mortgage.) Better options include the Veterans Aid & Attendance Benefit, a senior living line of credit, long-term care insurance, and life settlements.

This article focuses on the senior living line of credit, which is increasingly being used by families to move a loved one into a senior living community. Thousands of assisted living and senior living communities across the country offer and accept this option. This type of line of credit provides the following options:

• Allows you to borrow only what you need as you need it, in a line-of-credit format
  
  

• Allows for much smaller monthly payments on funds used while you wait for your loved one’s house to sell at a good price
  
  
• Offers same-day decision and fast funding (24 to 48 hours)
  
  
• Is typically unsecured, requiring no collateral in amounts up to $50,000
  
  
• Enables up to six persons to apply together, so one sibling doesn’t have to carry the burden
  
  
• Has funds sent directly to the senior living community each month, ensuring the line is used for housing
  
  
• Has flexible repayment terms of three to five years, more than enough time to sell a home
  
  
• Has documents that clearly indicate this is for Mom or Dad’s housing and care

Adult children may need to co-sign with Mom or Dad, which most families do not find to be an issue—they know that an asset will eventually be sold to repay the line of credit.

Remarkably, few adult children know about this option. It is proving to be a helpful private-pay option for families who want senior housing and care immediately and the convenience of smaller monthly payments. A senior living line of credit could take stress off the entire family, enable your loved one to make the move, and give you the breathing room and time you need.