QMC

MOHealthNet Vendor Qualification and Reverse Mortgages

Reverse Mortgages are a common asset/liability held by many Missouri seniors.  Under a reverse mortgage, a senior is allowed to borrow funds from a reverse mortgage bank, with the senior’s home being used as collateral for the loan, often allowing the senior to have the necessary funds to remain in the home.  The loan becomes due when the senior ceases to use the home as his or her residence, or when the senior passes away.

Under Missouri Medicaid regulations, reverse mortgages are considered a type of bona fide loan and are not considered as income or a resource for the month the payment is received. Payments from a reverse mortgage may be received in a lump sum or in monthly payments. If any funds remain from the reverse mortgage payment in the month following the month of receipt, the remaining funds are considered as an available resource.

Missouri Department of Social Services Income Maintenance Manual.

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