A Practical Guide to
Wheelchair Ramp Financing

Using personal savings is often the fastest way to pay for your ramp.

For families who need a solution immediately, this is always the easiest route. Since there are no credit checks, loan applications or bank approvals to wait for, you can have your ramp installed as early as the very next day after receiving a quote! You own the equipment from day one, and don’t have to worry about monthly interest or debt in the months to come.

What’s the difference between HELOC and Home Equity Loans? The two terms are often used interchangeably, but in reality, they work slightly differently.

If you’ve owned your home for a while, you’re likely to have “equity”, i.e. a portion of your home that you truly own. You can borrow against this equity value to fund home improvements, such as a wheelchair ramp, new walkways, bathroom modifications, and similar improvements.

Should you choose a Home Equity Loan, you’ll receive a fixed lump sum of cash directly. This is then typically paid back at a fixed rate of interest over a set period. This is most suitable if you already have a handicap ramp quote and want a predictable monthly payment.

On the other hand, the HELOC loan (Home Equity Line of Credit) works more like a credit card. After applying, you’re approved for a maximum amount and can “withdraw” from that amount as you need it. This is great if you’re planning a series of home improvements over time.

So why should you choose any of these options to finance your handicap ramp? Instead of taking on outside debt, you’re essentially reinvesting in your own property. Adding a high-quality, professional ramp system not only keeps your home safe and welcoming for you and your family for years to come, it often also increases the value of your property – a true win-win.

Because these loans are secured by your home, banks generally view them as lower risk. That means much lower interest rates than personal loans or credit cards, and the amount you can borrow is often considerably higher. That makes these types of loans a great option for financing more extensive projects, but remember, that they use your house as collateral. Make sure that the monthly payments fit comfortably into your budget.

If you prefer not using your house as collateral to finance your new handicap ramp / home modifications, personal loans are another great option. Many banks even offer “home improvement loans”, with fixed monthly payments.

Most personal loans come with fixed interest rates and set monthly payments. This will give you an exact idea of what your ramp budget looks from start to finish, which will make your budgeting easier. Many lenders offer the “home improvement loans” we mentioned earlier – these are specifically labeled for home upgrades, and often have a faster approval time than a traditional mortgage. You can typically receive the funds in just a few days. In other words, it’s a great way to get the accessibility you need without an upfront cash payment.

Credit cards can be an effective way to finance your wheelchair ramp, provided that they are used in a strategic way.

They are typically best suited for smaller products, like threshold ramps, portable ramps, or minor modular accessibility systems. If you have a card with a “0% introductory APR” offer, this will allow you to pay for your ramp with essentially an interest-free loan for 12-18 months. This means you can install your home ramp immediately and pay off the loan in chunks, without incurring any extra interest costs.

Using a credit card is one of the fastest ways to pay. If it has a rewards or cashback program, you can even get a small percentage of the cost back. Keep in mind that standard interest rates for credit cards can be very high, so this option is best if you have a clear plan on how to pay off the balance before the promotional period ends.

TAX AND INSURANCE

Using Tax Breaks and Insurance for Ramp Financing

These two options are hidden gems when it comes to financing your ramp. They don’t involve borrowing money; instead, they help you get your investment back, or use an insurance policy you’re already paying into.

If your physician has recommended a wheelchair ramp, walkway, or stair, to help with a medical condition or physical disability, the ramp is considered a medical necessity. That means, under IRS Publication 502, you can deduct the cost of your new home ramp as a necessary medical expense rather than a luxury home improvement.

However, when you improve your home, you can normally only deduct the part of the cost that exceeds the value added to the property. Thankfully, the IRS has ruled that entrance ramps, widened doorways and other modifications done for the sake of accessibility, do not increase the resale value of the home. That means you can typically deduct the entire cost of both equipment and installation, however, please consult with your tax professional to see how this fits into your income bracket.

Long-Term Care (LTC) Insurance

If you or your loved one has a private LTC insurance policy, you might already have the funds needed for your ramp sitting in your benefits. Most modern LTC policies are meant to help you stay in your home for as long as possible, and therefore, offer so-called “Stay at Home” benefits: benefits for environmental modification or home accessibility, like wheelchair ramps, grab bars, or stairlifts.

It’s an arrangement that benefits everyone. For you, it means reclaiming your freedom and gaining increased independence, while getting to stay in your home. For the insurance company, a professional modular ramp might cost a few thousand dollars as a one-time expense, while a stay inside an assisted living or nursing facility can cost $6,000 to $10,000 every single month.

Check your policy for coverage of “alternative care” or “home modifications”. If you’re lucky, your insurance company covers a significant part – or even the total cost – of your new home ramp.

New Mobility Magazine’s guide is worth exploring if you want to look beyond traditional financing. It covers:

• Grant programs
• Specialized loan options
• Crowdfunding support
• Home modification assistance resources

Mobility Article