Your legal obligation to pay back the loan is limited by the value of your home at the time the loan is repaid. Further, they do not affect your Social Security or Medicare benefits. If you receive Supplemental Security Income, RM advances do not affect your benefits as long as you spend them within the month you receive them. This is true in most states for Medicaid benefits also. When in doubt, check with a benefits specialist at your local area agency on aging or legal services office.
Some plans provide for fixed rate interest.
Others involve adjustable rates that change over the loan term based upon market conditions. Interest on RMs is not deductible for income tax purposes until you pay off all or part of your total RM debt. Although the FHA and lender-insured plans appear similar, important differences exist. This section also discusses advantages and drawbacks of each loan type. FHA-insured This plan offers several RM payment options.