Page 55

Louisiana Medicaid Eligibility Manual Eligibility Factors

Reissued June 9, 2026

Page 55 of I-1630 Replacing September 23, 2024

Revised/added text indicated by underscore

Deleted text indicated by “**” of the third month following the month of receipt of the payment.

• If the proceeds are received in a lump sum, the proceeds are the net amount the seller receives at settlement.

Example: An installment contract has a principal balance of $5,000 as of July 1. On July 10, the buyer makes a payment of $200. As of October 31, the beneficiary has used only $150 of the July payment in connection with the purchase of a new home. The exclusion of the unused $50, and of the installment contract itself, is revoked back to July 10. As a result, the $50 and the value of the contract as of August 1 ($4,800) are included in a revised determination of resources for August.

Proceeds may be used to pay any costs associated with the purchase of another excludable home. These costs include but are not limited to:

• Down payment,

• Settlement costs,

• Loan processing fees and points,

• Moving expenses,

• Necessary repairs or replacement to the new home that are identified and documented prior to occupancy ( e.g., roof, plumbing, appliances), and

• Mortgage payments.

Obtain from the beneficiary a statement of intent regarding the use of the proceeds in purchasing another excludable home within three full calendar months from the receipt of a lump sum payment or installment payments.

Out of State Home Property