Page 191

MEDICAL SERVICES POLICY MANUAL, SECTION E

E 520 Personal Property

If the applicant cannot prove that the loan is bona fide, the caseworker will not use the loan to reduce the equity value of the home.  NOTE:Any costs paid out of the loan proceeds to enable the individual to obtain the reverse mortgage can be used to reduce the equity provided that the costs become part of the outstanding debt. If the individual pays the costs out-of-pocket, the equity value cannot be reduced by that amount. EXAMPLE: An administrative cost of $3,000 is charged by the financial institution as part of obtaining a reverse mortgage for $85,000. If the client adds this amount to the balance of the outstanding loan, the total amount of the loan becomes $88,000. The total $88,000 can be used to reduce the client’s home equity amount. If the client pays the $3,000 out-of-pocket, the additional $3,000 cannot be used to reduce the equity amount.

E-520 Personal Property MS Manual 01/01/14 Personal property is property other than real property, consisting primarily of liquid assets. Personal property which is accessible to the individual, or of which the individual is free to dispose, is a countable resource unless it meets the criteria for exclusion as specified under MS E-523. E-521 Forms of Ownership MS Manual 01/01/14 Generally, ownership of personal property can be in the same form as that of real property (Re. MS E-512).

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Page 191

Official source

MEDICAL SERVICES POLICY MANUAL, SECTION E

E 520 Personal Property

If the applicant cannot prove that the loan is bona fide, the caseworker will not use the loan to reduce the equity value of the home.  NOTE:Any costs paid out of the loan proceeds to enable the individual to obtain the reverse mortgage can be used to reduce the equity provided that the costs become part of the outstanding debt. If the individual pays the costs out-of-pocket, the equity value cannot be reduced by that amount. EXAMPLE: An administrative cost of $3,000 is charged by the financial institution as part of obtaining a reverse mortgage for $85,000. If the client adds this amount to the balance of the outstanding loan, the total amount of the loan becomes $88,000. The total $88,000 can be used to reduce the client’s home equity amount. If the client pays the $3,000 out-of-pocket, the additional $3,000 cannot be used to reduce the equity amount.

E-520 Personal Property MS Manual 01/01/14 Personal property is property other than real property, consisting primarily of liquid assets. Personal property which is accessible to the individual, or of which the individual is free to dispose, is a countable resource unless it meets the criteria for exclusion as specified under MS E-523. E-521 Forms of Ownership MS Manual 01/01/14 Generally, ownership of personal property can be in the same form as that of real property (Re. MS E-512).