Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTJessica WongSun, June 14, 2026 at 10:30 PM GMT+2 5 min readImagine this scenario: Your parents are both in their 60s, carrying debt and trying to stay on top of bills while everyday costs keep rising. Then your dad suffers a heart attack.Suddenly, medical bills, lost income and the financial squeeze have the family searching for solutions. One option seems to come up on top: a reverse mortgage.Must ReadRobert Kiyosaki says this 1 asset will surge 400% in a year and begs investors not to miss this ‘explosion’The ultra-rich use these 5 real estate strategies to build wealth while they sleep — you can start with just $100Millionaires under 43 are reshaping investing — just 25% of their portfolios are in stocks. Here’s where their money is goingFor many older homeowners, tapping into the equity they’ve built up over decades can seem like a lifeline.New data (1) from nonprofit financial counseling organization GreenPath Financial Wellness found that 21.1% of seniors seeking reverse mortgages in 2025 were already running monthly budget deficits, up from 12.2% a year earlier.If your parents are considering a reverse mortgage to cover costs after a health crisis, while it could be a good move, it may not be the only option available.A reverse mortgage can help — but it isn’t free moneyAccording to the Federal Trade Commission (2), a reverse mortgage allows homeowners aged 62 and older to borrow against the equity they’ve built up in their home.Unlike a traditional mortgage, borrowers generally don’t make monthly loan payments. Instead, interest and fees are added to the loan balance over time, and the loan typically becomes due when the homeowner dies, sells the home or permanently moves out. The funds can be received as a lump sum, monthly payments or a line of credit and may be used for expenses such as debt repayment, healthcare costs or supplementing retirement income.For families dealing with a sudden health crisis, such as a heart attack or other serious illness, that extra cash flow can be very appealing.But a reverse mortgage doesn’t magically get rid of all housing costs.Homeowners still have to pay property taxes, homeowners insurance, maintenance expenses and other housing-related costs.The GreenPath data could suggest that many seniors are opting for reverse mortgages because they have run out of other options. The findings paint a picture of retirees struggling with rising housing costs, healthcare expenses and everyday bills, even while sitting on substantial home equity.So while the loan might help with an immediate cash-flow problem, it doesn’t necessarily fix an underlying budget shortfall.Terms and Privacy PolicyPrivacy & Cookie SettingsMore Info