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) According to USDA Government Website, those applying for Temporary Assistance for Needy Families (TANF) Program (formally known as Food Stamp) must meet income test requirements. Unless all members are receiving TANF, SSI, or in some places general assistance. Most households applying for (Food Stamp) TANF benefits must meet both the gross and net income tests, but a household with an elderly person or a person who is already receiving certain types of disability payments only has to meet the net income test. Households, except those noted, that have income over the amounts listed below cannot get SNAP benefits.
(Oct. 1, 2013 through Sept. 30, 2014)
Household Size Gross monthly income
(130 percent of poverty)
Net monthly income
(100 percent of poverty)
1 $1,245 $ 958
2 1,681 1,293
3 2,116 1,628
4 2,552 1,963
5 2,987 2,298
6 3,423 2,633
7 3,858 2,968
8 4,294 3,303
Each additional member +436 +335
Gross income means a household’s total, non excluded income, before any deductions have been made. Net income means gross income minus allowable deductions.
* SNAP gross and net income limits are higher in the states of Alaska and Hawaii.