Reverse Mortgages and Medicaid

Many senior homeowners are unable to qualify for long-term care insurance and may someday face the prospect of extended medical care for themselves and/or their spouse. If personal net worth is limited, government long-term medical care assistance programs have specific guidelines relating to the finances of both the infirmed and their partner. A reverse mortgage can provide additional funds outside of these restrictions and can enhance the lives of everyone involved. As long as the proceeds are spent, and not invested or gifted away, this money can be used to augment allowable income under Medicaid guidelines. These easy-to-qualify-for, low-interest rate, loans offer the opportunity to tap into some of the unexpectedly large accumulation of equity that has built up in a senior homeowner’s property. Although a reverse mortgage does not prohibit Medicaid from placing a lien upon a home, it is a lien behind the debt senior homeowners accumulate spending on themselves however they wish.