Will Your Reverse Mortgage Affect Your Social Security?

Does your reverse mortgage affect your Social Security and Medicare benefits?

This is a popular and legitimate question, as many Seniors rely on their Social Security funds as one of their sources of income during their retirement. Fortunately, the answer is that your reverse mortgage loan will not affect your Social Security benefits. Because it is not considered taxable income, you do not have to worry about your benefits being affected. Also you can find relief to know that if you decided to obtain a reverse mortgage loan, it will not affect your Medicare or pension benefits. The reason that your Social Security and Medicare benefits would not be affected, is because it is a program available to anyone regardless of their income.

However, if you have Medicaid or receive Supplemental Security Income (SSI), you have to be aware that it may be affected by your reverse mortgage loan. Because Medicaid (or Medi-Cal) and SSI are government sponsored programs that assist individuals who qualify under special requirements, recipients have to be aware of their benefits possibly being affected by their reverse mortgage loan. Medicaid (or Medi-Cal) is health care that is available to those with low-income. SSI is a federal income supplement available to those with little or no income, elderly or disabled. Be sure to ask a financial advisor or a Medicaid expert to see if your SSI or Medicaid may be affected by the reverse mortgage.

Read Related Articles:

5 Benefits of a Reverse Mortgage Loan

Reverse Mortgage: Property Taxes & Insurance

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