The financial risk is low, too. In Acra Lending’s case, the LTV typically is 75% for purchase and 70% for refinance.
For brokers, their task is to be fully aware of the details of their properties, including the number of bedrooms and bathrooms.
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For the end user, there is also a clear benefit, given that the cost of traditional adult care facilities can sometimes run into hundreds of thousands of dollars. According to a 2021 Cost of Care Survey by Genworth, a private room in a nursing home can be as much as $297 a day, or more than $9,000 a month.
“The monthly cost can sometimes be astounding, so it also comes down to affordability,” Fox noted. “A lot of folks that are on a fixed income don’t have those assets or they don’t have that monthly income. They’re also looking for something that’s not only affordable but maybe a little more personalized than what they would find in a large facility.”