If you are at least 62 years of age with equity in your home, a reverse mortgage specialist can help you access the cash in your biggest asset without ever having to make a housing payment. It is no secret that this unique option has become many seniors’ best opportunity to enjoy their nest egg while remaining in their home throughout their golden years. A reverse mortgage specialist can guide you in retaining your Medicaid eligibility throughout the process while protecting your heirs from future estate liability.
After working hard for many years to pay down your house note, residential property often becomes your biggest asset, especially during the retirement years. After age 62, many seniors choose to stop working in favor of enjoying the benefits of years-often decades-of hard work that they’ve put into their residence. This type of cash flow is otherwise known as a Home Equity Conversion Mortgage (HECM) and is designed to put money in your bank account by tapping into the available equity you have in your investment.
In order to determine whether you are eligible to obtain this unique FHA-insured product, your reverse mortgage specialist will consider a variety of factors including the amount of equity available and your age. Unlike a traditional loan process, a your credit and income requirements are not a factor, and there are no monthly payments whatsoever. In fact, with this unique product, it is just the opposite-the bank sends money to you while you enjoy retirement and remain in your own home for years to come.
What you may not know about these government-insured home equity payouts, however, is that they can sometimes make budgeting for retirement even more difficult if you or your spouse are dependent on Medicaid for some or all of your medical care. This is where a reverse mortgage specialist can provide expert advice once again. These highly specialized banking professionals will guide you through the various options for withdrawing your money that can affect not just your lifestyle but also your Medicaid healthcare eligibility. In particular, certain assets are exempt from eligibility scrutiny up to a specific dollar amount-and the equity in your primary residence is one such asset.
You can choose to receive monthly payments in a few ways: a lump sum at closing, regular annuity payments, a line of credit, or some combination of the three. As long as the payout from your line of credit is being accessed and used in the same month, there is no conflict with government Medicaid requirements. The idea is to keep your cost of living in line with the payouts in order to avoid an excess of cash in your bank account during any given month. In short, if you only withdraw what you need to live on and what you plan to spend, your eligibility should be unaffected by your annuity proceeds.
Since Medicaid eligibility can be affected by the size of your bank account and your disposable income, many seniors opt to access their equity in the form of a line of credit, which provides them with what they need to live comfortably every month without sacrificing their medical care or having to come out of pocket for healthcare expenses. A carefully chosen reverse mortgage specialist can help you choose your payout plan so you can retain your Medicaid eligibility and enjoy the financial security of your greatest asset while remaining in your home for years to come.