Originally Posted by Victor H

One of the horrible things about SSI qualification rules is that they consider your ability to access credit the same as actual "cash-on-hand".

A person that I know was getting SSI for several months (he got about $800/month for 4 months), and when Social Security determined that he could get a home equity loan (HELOC), he was forced to pay all of it back.

Social Security considers a Home Equity Line of Credit the same as having real money.

In other words, until you tap-out (and probably default on all available loan possibilities), you will not qualify.

I sure hope that Social Security just made a mistake and should not have included a home equity line of credit as actual assets. After all, it is a loan against your home,..., a loan.

If this is wrong, please let me know so that I can pass the word since the Social Security Department has not helped him.

-Vic

Originally Posted by Janke

WRONG

https://secure.ssa.gov/apps10/poms.nsf/lnx/0501120220

Read B.1 first bullet

However, if he converted the line of credit to actual cash and put the cash in the bank or in his pocket and didn't spend it, it would be a resource the first of the next month. Second bullet.

He was not required to borrow the money but if he did actually borrow it and didn't spend it, it became a resource. The same as selling a house or selling a car - converts from excludable to countable the month following the sale (with some exceptions).