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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
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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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