I own my home and receiving public assistance. Would a reverse mortgage be a good idea to get me some additional income?by William J. Sweeney on 05/12/15
(Mr. Sweeney is an attorney licensed in California. The comments below are not intended as legal advice for any specific situation and may not accurately reflect the law in other jurisdictions. There may have been changes in the law since this was written. You should always consult an attorney in your own jurisdiction.)
You see a lot of advertising on television and in the papers about the supposed benefits of Reverse Mortgages. While they can result in receiving payments charged against your equity in your home on a monthly, or some other basis, there are typically significant costs involved in starting and continuing to maintain the reverse mortgage. That is not to say in a particular case they might not be a good idea, but you should also look at other alternatives.
Also, if you are receiving some type of means tested aid such as MediCal (Medicaid) or SSI, you could find under certain circumstances receipt of monies from the equity in your home could disqualify you for the benefits you are receiving.
The subject is far too complicated to discuss in a brief article such as this, but if you are considering getting a reverse mortgage, I feel it is important you speak to someone knowledgeable about reverse mortgages (besides the person or entity trying to sell you one) and alternatives before committing yourself to one.
A knowledgeable attorney can help you with this.
William J. Sweeney
Attorney at Law
915 Highland Pointe Dr., Ste. 250
Roseville, CA 95678