A common concern among reverse mortgage applicants is whether or not their Medicaid benefit will be affected by a reverse mortgage. Medicaid is a government-sponsored program that is intended to provide healthcare to low-income individuals. Unlike with Social Security and Medicare, Medicaid eligibility can be affected by a reverse mortgage.
A reverse mortgage can be helpful to senior homeowners who are looking for additional funds. Borrowers are not automatically disqualified for Medicaid with a reverse mortgage. However, the homeowner has to be careful with the amount of reverse mortgage funds they have readily available every month. Therefore, determining Medicaid eligibility with a Reverse Mortgage can become quite complicated.
Seniors should contact their state’s Medicaid administrator to determine exactly how to comply with the Medicaid eligibility requirements if they take out a reverse mortgage. Having an expert advise you can help you make a more informed decision.
*A complete list of Mandatory and Optional Medicaid Benefits can be found at https://www.medicaid.gov/medicaid/benefits/list-of-benefits/index.html