How does a reverse mortgage effect Medicaid eligibility?


It's looking more and more like my mom will have to go to NH. My dad isn't sure if he wants to move out of their house into AL. They own the house, but it is in need of some costly repairs that they don't have the money for. If my dad stays at home and takes out a reverse mortgage I understsnd my mom will lose her Medicaid eligibility. Say he takes 50k for the reverse mortgage. 1) Will my mom have to spend down 25K before she is eligible for Medicaid again? Will she have to go through the VERY long process of applying like the first time? Does the NH help with this process or would I be on my own again to navigate the process? She won't be able to afford the NH. Im so nervous about her losing Medicaid. Any help/resources is greatly welcomed.

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Freqflyer, thank you for the response. It is helpful!
My brother is interested in buying the house (for FMV of course). If he buys the house and my dad still lives in it, do your think that is a problem? This gets so complicated. Ugh!
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Since each State has different rules and regulations, your best bet is to contact your State Medicaid office. It's my understand that the nursing home will help you through the process, but check with them first.

There are pro and cons about reverse mortgages. One has to remember it is a *loan* that will have to be paid back immediately once your father is no longer living in his house or passes on.... then it is up to the heirs to either get a brand new loan to pay back the reverse mortgage or to sell the house quickly to get what is left of the equity to pay back the reverse mortgage.

I know a senior would like to keep living in their home but they need to be able to afford to take care of the repairs without digging into their equity. Plus the cost of twice yearly real estate taxes, and the cost of homeowners insurance and an umbrella policy if the senior plans to bring in caregivers to help.

Have Dad sell the house *as is*... a young couple might want a fixer upper at an affordable price, so they can start a family in that home, too.
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