# Elderly Man Uses Reverse Mortgage to Access $80,000

> 71-year-old widower takes $80,000 from house equity via reverse mortgage to avoid monthly payments, but Medicaid counts it as income after nursing home stay.
- Title: Elderly Man Uses Reverse Mortgage to Access $80,000 | Shortify
- Summary: 71-year-old widower takes $80,000 from house equity via reverse mortgage to avoid monthly payments, but Medicaid counts it as income after nursing home stay…
- Keywords: reverse mortgage, medicaid, nursing home, house equity, widower, 80000, medicaid office, home equity conversion mortgage, hecm, Elderly, Man, Uses
- Source: 24/7 Wall St. — https://247wallst.com/personal-finance/2026/10/07/he-pulled-80000-out-of-the-house-at-71-with-a-reverse-mortgage-so-thered-be-no-monthly-payment-the-nursing-homes-medicaid-office-counted-every-dollar-of-it-and-the-house-it-came-from-had-never
- Author: Gerelyn Terzo
- Published: 2026-10-07T23:11:32+00:00
- Read time: 1 min
- Topics: reverse mortgage, medicaid, nursing home, house equity, widower, 71, 80000, medicaid office, home equity conversion mortgage, hecm
## Elderly Man Uses Reverse Mortgage
A 71-year-old widower takes $80,000 from his house equity via reverse mortgage to avoid monthly payments.
## Medicaid Rules Change After Withdrawal
Medicaid ignored the house equity for years but counts it as income once moved to a bank account.
## How Medicaid Counts Assets
Medicaid treats home equity as exempt until cashed out, then counts it as a resource within 24 hours.
## State-Specific Equity Limits
Most states cap home equity at $752,000-$1,130,000, but California has no limit.
## Reverse Mortgage Timing Rules
A reverse mortgage becomes due if the borrower doesn’t live in the home for 12 months due to illness or disability.
## Medicaid Application Impact
If $60,000 remains in bank account when applying, he exceeds Medicaid’s $2,000 limit and must spend down.
## Spending vs. Holding Funds
Spending on needs like medical bills keeps funds out of Medicaid’s count, but holding them triggers penalties.
## Consequence for Nursing Home Stay
The $80,000 becomes countable after nursing home stay exceeds 12 months, risking home sale or loan repayment.
## Key takeaway

A 71-year-old widower accessed $80,000 from his house equity using a reverse mortgage to avoid monthly payments, but Medicaid later counted the funds as income when he moved to a nursing home.