Myth or Fact – Can I Lose Medicare or Social Security from a Reverse Mortgage?

Reverse Mortgage Myth: You can lose your Medicare and social security with a reverse mortgage

Reverse Mortgage Fact: No, you cannot lose your government benefits of Social Security or Medicare with a Reverse Mortgage. Reverse Mortgage are also managed under the Government Agency – Federal Housing Administration(FHA).

No, you can’t lose your Medicare or Social Security benefits directly because of a reverse mortgage. These are federal entitlement programs, and taking out a reverse mortgage—a loan against your home’s equity—doesn’t affect your eligibility for them. Medicare is based on age (65+) or disability, and Social Security on your work history and credits earned. Neither program cares about your home equity or whether you borrow against it.

Here’s the nuance, though: The money you get from a reverse mortgage could indirectly mess with things if you’re not careful, but it’s unlikely. Social Security retirement benefits aren’t income-tested, so the cash from the loan—whether a lump sum, monthly payments, or credit line—doesn’t count as income and won’t reduce or cancel them. 

Most reverse mortgage borrowers—about 90%—stick to HECMs, which are FHA-backed and require counseling. Counselors flag this risk, and data shows it’s rare for Medicare or Social Security to be affected. Bottom line: You won’t lose those benefits from the mortgage itself.

Reverse mortgages can be a useful financial tool for eligible seniors looking to supplement income, pay for healthcare, or cover living expenses, but they also come with complexities that should be thoroughly understood before proceeding.

Learn more about eligibility requirements for a reverse mortgage, situations where a reverse mortgage is best used, and common myths around reverse mortgage that we debunk with facts