How does a reverse mortgage effect assets or income with regards to VA Pension with A and A?

You do not report a reverse mortgage ie it’s a loan that is paid back; therefore, it is not an asset or income.

M21-1MR, Part V, Subpart iii, Chapter 1, Section I


m.  Loans, Including Reverse Mortgages

Do not count loans to a claimant as long as the claimant incurs a legally binding obligation to repay the loan. 


Do not count funds received from a reverse mortgage.  A reverse mortgage is considered a home equity loan that must be repaid when the homeowner no longer lives in the home. 


Note:  Loans must be distinguished from gifts.  A gift disguised as a loan is countable.




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