How Does A Home Equity Loan Affect Medicaid
A home equity loan can potentially affect Medicaid eligibility, as it can increase the applicant's countable assets and income, which are factors considered in determining Medicaid eligibility. Here's how a home equity loan may impact Medicaid eligibility: Countable Assets : Medicaid has strict asset limits that applicants must meet to qualify for benefits. Assets include cash, bank accounts, investments, real estate, and other valuable possessions. When a homeowner takes out a home equity loan, the loan proceeds typically increase the individual's countable assets. If the value of the home equity loan, combined with other assets, exceeds the Medicaid asset limit, the applicant may be ineligible for Medicaid benefits. Income : Medicaid also considers the applicant's income when determining eligibility. Income includes wages, Social Security benefits, pension payments, and other sources of income. If the borrower uses the proceeds from the home equity loan to generate ...