Reverse Loan – Does It Endanger The Government Benefits
The general threat among seniors is, that they have to go to the nursing home. This is not only about losing their privacy but the costs of the nursing homes are high. They can easily costs between $ 35.000 – 150.000 depending on the location. How a reverse loan can help a senior?
1. The Counselor Can Guide.
The reverse loan and all other financial plans must be planned together with the counselor. Before a senior can get the reverse loan he has to meet the federal counselor, says the law. It is wise to ask also about the Medicaid issues.
2. The Medicaid.
Many seniors do the solution, where they will pay for the nursing home untill they have used their savings. After that they can qualify for the Medicaid. It is useful for a senior to remember, that Medicaid costs are only about 9 % to the nursing home costs.
3. Do The Planning.
The financial planning, which is required for the reverse mortgage loan means, that a senior will transfer the assets to another location, so that the ownership will be changed, i.e. a senior is not anymore the owner of those assets. The transfer must be handled carefully following the rules of the Congress.
4. What About The Reverse Mortgage Loan.
This is a special product for seniors, who are age 62 or over and own a home, where they live permanently and where they have equity left. The loan will be taken against the equity of the home, so the income information nor the credit score will not be asked.
A senior can transfer a part of the equity into cash money tax free. The back payment happens, when the loan will be closed. This happens, when the borrower will sell the home, move away or die. There will be no monthly payments, the lender will pay to the borrower every month.
5. The Influences On The Medicaid.
The reverse loans can influence on the Medicaid. The rule of thumb is, that the income from the reverse loan is not taken as an income, if the money is used during the same month as got. If a senior has planned to enjoy about the Medicaid, it is utmost important to go through the whole financial plan together with an expert. The counselor is the best to do this, because he is an expert on this field.
