The money received from a reverse mortgage is considered tax-free income. Regular reverse mortgage payments would not affect regular Social Security or Medicare benefits. However, extra cash from a reverse mortgage may affect eligibility for some needs-based programs such as Medicaid or Social Security Income (SSI).

For specific questions on your benefits, we suggest you contact your local Area Agency on Aging, (800) 677-1116, or visit the web-based service Benefits Checkup. The homeowner must continue to pay property taxes and insurance.