I am buying a condo in Virginia for my elderly parents to live in, to which they will move from NY. My name and my mother’s name are on the mortgage. She has no income but I had to include her name on the mortgage so the condo will be considered a primary residence and not an investment property. Our lender says my name can’t be the only one on the title and that her name should be added as well because she is a primary resident.
Will adding her name to the title affect her and my father’s Medicaid eligibility? I will be paying all mortgage payments, down payment and costs related to the condo.
So you wrote that “Mom has no income”? Is this accurate? So She does not get any Social Security retirement income??? Does your Dad? Is she getting something based off of his SSA retirement $? If no income, how do they currently pay for housing? for food?
Are they SSI? SSI is super restrictive for eligibility. Her suddenly having a condo as an a$$et will be an issue for SSI for the both of them.
Or they r truly no income, so on NYS Essential Plan? Are they NCRs?
If no SSA income, is she even eligible for Medicare? Medicare requires 40 qtrs of reported FICA work earning for Part A to be premium free and have the Part B taken from their SSA retirement income ea month. Are they on Medicare? Or are they on purely Medicaid? or on NYS Essential Plan?
The answers are important as it can determine just what programs they are / were on in NYS. And whether or not there is an equivalent program in the new State of VA. Please pls realize that whatever they were on in NYS ends once they move to VA, with the exception of Medicare. They will need to do fresh applications for Virginia, which does not have the social services safety net that NYS does.
on that condo, this has already happened? If not, please think about putting a pause on this till you speak with an VA elder law attorney experienced with what programs VA has to zero to low income residents PLUS how VA does LTC Medicaid and Community based Medicaid program eligibility for assets and then for estate recovery. This is not a DIY. It’s attorney work. That banker / mortgage officer and your Realtor will be pissed but really hit the pause button on this, till you meet with a VA elder law attorney.
Should you do this and say later this year, he has a fall and ends up full time resident in a NH and as they have no $ LTC Medicaid is filed for…… every day he is there he is accruing a tally of costs paid by the State of VA which they will do a required recovery attempt as a claim or a lien on any assets owned by him or his wife eventually. Easily 6 figures within a year. That you have paid all costs on the condo does not matter. It’s an asset legally titled and owned in some way by your mom so recovery actions can be done as they are married. It’s risks like this that the bank officer is clueless about. Find an attorney.
A lucky day for this query!
Also, the Elder Law Attorney can advise you regarding using your own funds to purchase this condo, putting down a down payment, paying the monthly mortgage, paying for personal insurance for within the walls of the condo, and the HOA condo fees which do go up yearly.
If the Attorney recommends that your parents not be on the title, then the Lender would need to redo the mortgage as an "investment", thus higher interest rates, plus complications if your parents do no pay the going rate for rent as this can be an accounting nightmare when it comes to income tax.
This makes no sense, what if you rented the condo. The person renting would not be paying the mortgage or on the deed. YOU are buying a condo for your parents to live in. Itbmakesbno sense that their names have to be anywhere.
You need to consult with an Elder Lawyer.
Not without an attorney, you won't.
Not if you're smart.
Remember, we are just a Forum of caregivers.
When you need legal financial advice you see the experts.
I think your note to us indicates you are already quite uncertain of this action. And rightly so.
Wish you the best of luck and excellent legal advice for this New Year.