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Reverse Mortgages: Social Security, Medicare, and Medicaid

A Reverse Mortgage does not affect government benefits programs such as Medicare and Social Security. However, a reverse mortgage can affect programs including Medicaid and Supplemental Security Income (SSI) because those programs test to see how much income or financial resources you have available.

Social Security is NOT Affected by a Reverse Mortgage
There are no specific income or resource requirements to qualify for a reverse mortgage. So, the proceeds of a reverse mortgage loan will have no impact on individuals receiving social security retirement and disability benefits.

Medicare is not affected by a Reverse Mortgage
Like Social Security, Medicare is an entitlement program that you are eligible for regardless of income.

Medicaid can be affected by a Reverse Mortgage
Medicaid (and Medi-Cal) is a government sponsored program that is intended to provide health care to low-income individuals.

Supplemental Security Income (SSI) can be affected by a Reverse Mortgage
SSI is a federal income supplement program that aids the elderly, disabled, and those with little or no income.

In short, a Reverse Mortgage does not automatically disqualify a homeowner for SSI or Medicaid but the homeowner has to be careful with the timing of spending of the Reverse Mortgage funds. You should contact SSI and Medicaid to determine exactly how to comply with the eligibility requirements if you take out a reverse mortgage.

HUD Reverse Mortgages are Guaranteed by the Department of Housing and Urban Development and Insured by FHA

HUD's Federal Housing Administration (FHA) created Reverse Mortgages.. Reverse Mortgages are also known as HECM's, Home Equity Conversion Mortgages. HECM Loans are a Safe Government Regulated Program.