Mother is in assisted living and receives aid and attendance from the VA. We are wondering if renting her home would change how the VA categorizes it. It is currently an exempt asset, but would the VA view it as income property if we rent it? I realize that we would need to show the new income, but we don't want to risk losing the exempt status of the home.
Mother's savings account is draining quickly so if we can't come up with additional income she will need more help than what she is getting currently from the VA. We have a disabled brother who may need to live in her house some day, so we are trying not to sell it.
I have looked on the VA website and have not been able to find an answer to this question. The VA representative I spoke to locally said renting it would only change her income. He seemed unsure when I asked him about risking the exempt status of the home.
I would greatly appreciate guidance on this issue. Has anyone done this? How did it work for you?