Owning a home generally doesn't affect your SSI eligibility. Your primary residence is excluded from the $2,000 resource limit. Here's what you need to know.
In this article, we'll cover:
- Home exclusion rules
- What counts as your home
- Selling your home
- Other property
1. Home Exclusion Rules
Your home is excluded:
- Primary residence not counted
- Regardless of value
- If you live there
- Or intend to return
Why it's excluded:
- Everyone needs a place to live
- Selling would cause hardship
- SSA protects housing stability
- Important exemption
What's included in exclusion:
- House or apartment (owned)
- Mobile home
- Houseboat
- Land the home sits on
- Related outbuildings
Requirements:
- Must be your principal residence
- Where you live
- Or intend to return to
- Documentation may be needed
2. What Counts as Your Home
Primary residence:
- Where you actually live
- Where you intend to return
- Your main home
- Not vacation property
If you live in someone else's home:
- Not your excluded resource
- But may be receiving ISM
- Different rules apply
- Not homeownership
Co-ownership:
- Own with someone else?
- Your share may or may not count
- Depends on living arrangement
- Complex rules
Temporary absence:
- In hospital or nursing home
- Still intend to return
- Home remains excluded
- Document your intent
Important: As long as you live there or intend to return, your home is excluded regardless of its value.
3. Selling Your Home
Proceeds from sale:
- Become cash (a resource)
- Must manage carefully
- Could push over $2,000
- Plan ahead
What to do with proceeds:
- Buy another home
- Use for disability-related expenses
- Transfer to ABLE account
- Pay off debts
Buying another home:
- Use proceeds for new home
- New home is excluded
- Timing matters
- Don't hold cash too long
Time limits:
- Generally should reinvest in home
- Within reasonable time
- 3 months is typical expectation
- Explain delays to SSA
If you can't buy immediately:
- Set aside for home purchase
- Document your intent
- SSA may exclude temporarily
- Keep records
4. Other Property
Second home or vacation property:
- NOT excluded
- Counts as resource
- At fair market value
- Could affect SSI
Rental property:
- May or may not count
- If essential to self-support: May be excluded
- If just investment: Counts
- Complex evaluation
Land:
- If connected to home: Excluded with home
- Separate land: Usually counts
- Unless used for self-support
- Evaluate carefully
What affects value:
- Outstanding mortgage reduces value
- Only your equity counts
- Liens reduce value
- Fair market value used
Home Equity and SSI
Home equity doesn't count:
- No matter how much
- $500,000 home still excluded
- If it's your residence
- One of the most valuable exclusions
Reverse mortgage:
- Converts equity to cash
- Cash becomes a resource
- Must manage proceeds
- Different from regular equity
Home Improvements
Using resources for home:
- Good way to spend down
- Home improvements excluded
- Repairs excluded
- Accessibility modifications
Examples:
- Roof repair
- Wheelchair ramp
- HVAC replacement
- Necessary maintenance
How Purple Helps
- Track housing expenses
- Monitor overall resources
- Budget for home costs
- Keep under resource limit
- Simple financial management