Reverse
Mortgages: Social Security, Medicare, and Medicaid
A Reverse Mortgage does not affect government benefits
programs such as Medicare and Social Security. However, a
reverse mortgage can affect programs including Medicaid and
Supplemental Security Income (SSI) because those programs
test to see how much income or financial resources you have
available.
Social Security is
NOT Affected by a Reverse Mortgage
There
are no specific income or resource requirements to qualify
for a reverse mortgage. So, the proceeds of a reverse
mortgage loan will have no impact on individuals receiving
social security retirement and disability benefits.
Medicare is not affected by a Reverse Mortgage
Like
Social Security, Medicare is an entitlement program that you
are eligible for regardless of income.
Medicaid can be affected by a
Reverse Mortgage
Medicaid (and Medi-Cal) is a
government sponsored program that is intended to provide
health care to low-income individuals.
Supplemental Security Income (SSI) can be affected by a
Reverse Mortgage
SSI is a federal income
supplement program that aids the elderly, disabled, and
those with little or no income.
In short, a Reverse Mortgage does not automatically
disqualify a homeowner for SSI or Medicaid but the homeowner
has to be careful with the timing of spending of the Reverse
Mortgage funds. You should contact SSI and Medicaid to
determine exactly how to comply with the eligibility
requirements if you take out a reverse mortgage.
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