How income from a Reverse Mortgage could ability to receive benefits.

Q) I am a local mortgage broker who offers Reverse Mortgages, I would like to understand how income from a Reverse Mortgage could affect a borrower’s ability to receive benefits. Is there a chart or guideline I could go by to determine if benefits will be in denied or reduced due to a Reverse Mortgage?

A) Here are some things to keep in mind about how income from a reverse mortgage could affect a borrower’s ability to receive benefits:

• Medicare: Medicare is a federal health insurance program for people 65 and older, people with certain disabilities, and people with End-Stage Renal Disease (ESRD). Medicare does not count reverse mortgage proceeds as income, so they will not affect your eligibility for Medicare.
• Medicaid: Medicaid is a state-based health insurance program for low-income people. Medicaid does count reverse mortgage proceeds as income, so they could affect your eligibility for Medicaid. The amount of your reverse mortgage proceeds that will count towards your Medicaid eligibility will vary depending on your state’s Medicaid rules.
• Social Security: Social Security is a federal program that provides retirement, disability, and survivor benefits. Social Security does not count reverse mortgage proceeds as income, so they will not affect your eligibility for Social Security benefits.
• Supplemental Security Income (SSI): SSI is a federal program that provides cash assistance to low-income people with disabilities. SSI does count reverse mortgage proceeds as income, so they could affect your eligibility for SSI. The amount of your reverse mortgage proceeds that will count towards your SSI eligibility will vary depending on your income and resources.

It is important to note that these are just general guidelines. The specific impact of a reverse mortgage on your benefits will vary depending on your individual circumstances. If you are concerned about how a reverse mortgage could affect your benefits, you should speak with a financial advisor or an attorney who is familiar with reverse mortgages and government benefits.