Brother on SSI want to take Equity out of home...will he lose SSI?

[jomustard]

CALif
My brother is on SSI disability. My brother and I own a home in joint tenancy. We would like to tap into some equity in the home to help make ends meet. We would qualify for a home loan of $60,000 against the house. My question is would this effect his SSI? Since it is a loan he will need to repay?

 

[FlyingRon]

The equity in the house he lives in is exempted from the asset test for SSI. As soon as it becomes cash or something tangible to him, then it will count towards the $2000 limit.

The exemption (other than the home) are his (single) car, ABLE/PASAS/IDA accounts and burial savings.

 

[PayrollHRGuy]

My question is would this effect his SSI?

The short answer is yes. Ron told you why it is yes.

 

[jomustard]

Even though it is a loan that has to be repaid?

 

[PayrollHRGuy]

Even though

 

[xylene]

A loan is not away of making ends meet.

 

[commentator]

And he must report it. As soon as it becomes cash or something tangible to him, as was said above. They will find out, and it will be considered fraud if he doesn't.