Making your home safer and more comfortable as you age is one of the smartest investments you can make, but larger projects often come with significant price tags. Installing a walk-in tub might run anywhere from $2,000 to $10,000 or more. Widening doorways for wheelchair access can cost $600 to $2,000 or more per doorway. Kitchen remodeling to accommodate mobility challenges can easily reach $15,000 to $50,000 depending on the scope. When you add up the costs of multiple modifications, the total can feel overwhelming.
The good news is that you have several options for funding these essential projects. Understanding your choices, from common financial tools to senior-specific programs and assistance options, can help you move forward with modifications that make aging in place not just possible but comfortable and safe.
Below, we’ll walk through several ways to pay for home modifications, including what each option covers and the tradeoffs to keep in mind.
Home equity line of credit
A home equity line of credit (HELOC) allows homeowners to borrow against the equity they’ve built in their property. It functions like a credit card secured by your home: You receive a credit limit based on your equity and can draw funds as needed during a set period, typically 10 years.
Most lenders cap how much you can borrow at about 80% to 85% of your home’s value, minus what you still owe on your mortgage. For example, if your home is worth $200,000 and you still owe $50,000 on your mortgage, a lender that allows 80% may let you borrow $120,000 through a HELOC for home modifications.
Points to keep in mind: HELOCs typically have variable interest rates, meaning your payments can fluctuate over time. You’ll also need to qualify based on income and credit score. Remember that your home serves as collateral, so if you struggle to make payments, you risk losing your home.
Personal loans
Personal loans provide a lump sum of money that you repay in fixed monthly installments over a set term, often two to seven years. Unlike HELOCs, they don’t require your home as collateral, making them an unsecured borrowing option.
Loan amounts typically range from $1,000 to $100,000, depending on your credit score, income, and the lender. Many borrowers can access $25,000 to $50,000 with good credit, which can cover many common modification projects.
Points to keep in mind: Interest rates on personal loans are generally higher than home-secured options because they’re unsecured. Your rate will depend heavily on your credit score, and some lenders charge origination fees that add to your total cost. Monthly payments are fixed, which makes budgeting easier but also means you’re committed to that payment regardless of changing circumstances.
Reverse mortgages
A reverse mortgage is a loan available to homeowners aged 62 and older that converts a portion of home equity into cash without requiring monthly mortgage payments. Instead of making payments to a lender, you receive payments from the lender based on your home’s value.
The amount you can get from a reverse mortgage depends on your home’s appraised value, your age, and current interest rates. Funds can be received as a lump sum, monthly payments, or a line of credit, which you can use to fund home modifications.
Points to keep in mind: The loan balance grows over time as interest accrues, reducing the equity remaining for your heirs. You must continue paying property taxes, insurance, and maintenance costs, or you risk default. Closing costs tend to be higher than traditional mortgages. To keep the loan in good standing, at least one borrower must continue living in the home as a primary residence, and extended absences (such as a long stay in a senior care facility) can trigger repayment. The loan becomes due when you sell the home, move out, or pass away.
Required minimum distributions
Once you reach age 73, you’re required to take minimum distributions from traditional IRAs and most employer retirement accounts each year. For seniors whose living expenses are comfortably covered by Social Security and other income, these required withdrawals can create excess funds ideal for home modifications.
The amount available depends entirely on your retirement account balances and the IRS distribution tables. If you don’t need those funds for daily expenses, they can fund meaningful home improvements.
Points to keep in mind: These distributions count as taxable income, which could push you into a higher tax bracket or affect Medicare premiums. Using retirement funds also reduces the assets available for future senior care needs or inheritance. Consider consulting a financial advisor to understand the full impact on your tax situation and long-term financial security.
Government and nonprofit assistance programs
Several federal, state, and nonprofit programs provide grants or low-interest loans specifically for home modifications, particularly for low-income seniors. These include the USDA Section 504 Home Repair program, which offers grants up to $10,000 and loans up to $40,000. HUD’s Title I property improvement loans help homeowners lacking substantial equity make necessary improvements. Local Area Agencies on Aging often connect seniors with state-funded repair programs or nonprofit organizations like Rebuilding Together, which provides repairs at no cost to eligible homeowners.
The Weatherization Assistance Program helps low-income households improve energy efficiency, while Medicaid’s Money Follows the Person program assists those transitioning from institutional care back to their homes with necessary modifications.
Points to keep in mind: These programs often have income restrictions, geographic limitations, and lengthy application processes. Funding may be limited, and wait times can be substantial. However, for those who qualify, they represent significant savings. For detailed information, visit our comprehensive guide to home repair and modification assistance for seniors.
Veterans programs
Veterans have access to several specialized programs for home modifications. The Home Improvements and Structural Alterations (HISA) grant provides funding for modifications that improve disability access, with grants ranging from $2,000 to over $6,800 depending on whether the disability is service-connected. The Specially Adapted Housing (SAH) grant helps Veterans with severe service-connected disabilities make comprehensive modifications or even build adapted homes. VA-backed cash-out refinance loans allow Veterans to tap into home equity with favorable terms, including competitive interest rates and no private mortgage insurance requirement.
Points to keep in mind: Each program has specific eligibility requirements related to service history and disability status. Application processes vary, and some grants have lifetime limits. Veterans should contact the VA or their local VA medical center to understand which programs they qualify for and how to apply. More details on these programs can be found in our home repair and modification assistance guide.
Moving forward with your modifications
Funding home modifications doesn’t have to be an all-or-nothing decision. Many families combine multiple sources, perhaps using a personal loan for immediate safety modifications while applying for assistance programs that take longer to process. The key is understanding your options and choosing the combination that best fits your financial situation, timeline, and long-term goals.
Consider speaking with a professional who understands senior-specific needs to help evaluate which approaches make the most sense for your circumstances. The investment you make in your home today can pay dividends in safety, independence, and peace of mind for years to come.
This information is for educational purposes and is not legal, financial, tax, or investment advice. It should not be substituted for information from professionals authorized to practice in your area. You should always consult a suitably qualified professional regarding your specific situation.
