My Personal Finance Blog

How much will the SSA grant in supplemental income, and what benefits can you receive?

When you or a family member is unable to work due to a work-related injury or a severe medical condition, you can apply for Social Security benefits from the Social Security Administration.

How soon, and how often, will I receive Social Security disability benefits?

Once your application is approved, you will start receiving benefits in about 6 months. You will receive your Social Security benefits on a monthly basis.

How much will my benefits be?

The amount of your monthly disability benefits is based on your average lifetime earnings. You can get an estimate of your benefits from the SSA’s Benefit Calculator on their website. For guidance, below are the 2008 v. 2009 Social Security disability thresholds:

- 2008: Substantial Gainful Activity (SGA) – Non-Blind ($940 / month), Blind ($1,570 / month), Trial Work Period ($670 / month)

- 2009: Substantial Gainful Activity (SGA) – Non-Blind ($980 / month), Blind ($1,640 / month), Trial Work Period ($700 / month)

What kinds of benefits can I get?

In addition to a monthly amount, you may be eligible to receive other benefits. Additional Social Security benefits that you may be eligible for are:

- Supplemental Security Income (SSI) if you are 65 or older, blind, or disabled

- Food stamps

- Medicaid

- Medicare (after 2 years)

- Services under the Ticket to Work Program (allows you to go to work to earn more money)

When do I get Medicare coverage?

You will get coverage after you have received disability benefits for 2 years.

Is my family eligible to receive benefits?

Yes. Certain family members may qualify for benefits. They include:

- Your spouse, if he or she is 62 or older

- Your spouse, if he or she is financially supporting a child of yours who is either disabled or under the age of 16 younger

- Your child, if he or she is under the age of 18 and in school full time

- Your child, over the age of 18, if he or she has a disability that started before age 22

How much can a family member receive in benefits?

Each family member may be eligible for a monthly benefit of up to 50% of your disability rate.

Adjustments to your benefits:

Your Social Security benefits may change as necessary. Your benefits may change or be stopped if:

- The cost of living has gone up (in which case, your benefits would increase)

- Your medical condition improves

- There is any change in your ability to work

- You get married or divorced

- Your citizenship changes

What may cause my Social Security benefits to be temporarily or permanently stopped?

- You have an outstanding arrest warrant

- You are convicted of a crime

- You are also receiving Railroad Retirement benefits

- You earn more than $980 or more per month ($1,640 if you are blind)

- You violate a condition of your probation or parole

What may cause my Social Security benefits to be reduced?

Your Social Security disability benefits may be reduced if you receive other government benefits.

Your Social Security benefits may be reduced if:

- You are receiving workers’ compensation

- You work for an employer that does not withhold Social Security taxes from your salary (Windfall Elimination Provision)

- You receive a pension from a federal, state or local government based on work where you did not pay Social Security taxes (Government Pension Offset)

Social Security Attorneys and 2009 Social Security Disability:

What 2009 Social Security Disability changes will occur? A Social Security Disability attorney is an expert on disability law. Hiring a disability lawyer helps improve your chances of winning disability benefits and can impact the speed from date of application that you start to receive benefits. If you have questions about the 2009 Social Security Disability application, or if you have a case from a prior year that has not been awarded benefits, consider contacting an experienced disability lawyer.

Matt Berry is an Atlanta SSI disability lawyer focused on disability law. His team of Social Security attorneys is experienced with the 2009 Social Security Disability law.

Seniors today often live with a great deal of financial uncertainty. The retirement they imagined may not be consistent with the reality they face.

Incomes are flat or declining, living and medical expenses are higher than ever and few income boosting alternatives exist.  Even those who have heard about Reverse Mortgages may be unsure about how they work or what questions to ask. As they search for information, they often turn to their financial institution for guidance and information. By becoming familiar with the product, you can be an even more valuable resource to your clients providing them with income supplementing alternatives to drawing down assets.  

 

What is a Reverse Mortgage?

 

A Reverse Mortgage is a special type of loan that allows a homeowner to convert a portion of the equity in their home into cash they can access. The funds are not taxable to the homeowner and typically don’t interfere with eligibility for Social Security or Medicare benefits. (However, in the federal Supplemental Security Income program, beneficiaries must keep their liquid resources under certain limits.) The customer retains title to the home as well as right to any appreciation in home value when the loan terminates after it is paid off. The loan remains in force until the last titleholder dies, permanently leaves the home or sells the property; the borrower can’t be forced to sell or move by the lender. The loan may be repaid at any time. But unlike a traditional home equity loan or second mortgage, no monthly payments are required. Instead of putting further pressure on an already stretched budget, a Reverse Mortgage can free a senior homeowner of monthly debt obligations.

 

Most Reverse Mortgages today are Home Equity Conversion Mortgages (HECMs) and are FHA-insured and guaranteed. Because HECMs are subject to FHA lending limits, proprietary products have also been developed to help homeowners with properties in excess of the FHA lending limits.  

 

Who qualifies for a Reverse Mortgage?

 

All titleholders must be 62 or older and own a home with some equity. There are no income or credit qualifications. Existing mortgages or liens must be paid off, but are often paid with proceeds from the Reverse. The homeowner must also remain current on insurance and property taxes, but these can also be paid with proceeds from the Reverse.

 

How can a borrower use the money?

 

The funds can be used for any purpose from making ends meet to living retirement dreams.  The top reasons for funds used given typically by borrowers are:

 



Paying off debts, primarily mortgage and credit cards

Home repairs and remodeling

Living expenses

Travel

Health care or long-term care

Easing the financial burden on children

Education

Hobbies

Escalating property taxes



 

The amount available depends on the borrower’s age, the value of the home, interest rates and local FHA lending limits. Older borrowers can receive a higher percentage of their equity than younger borrowers. Funds can be received in a lump sum, a monthly payment or a line of credit.

 

What are the costs?

 

As with most any loan product, there are origination fees and closing costs, but they can be paid from the proceeds of the Reverse Mortgage. HECM loans also have a charge for the FHA’s Mortgage Insurance Premium (MIP). There are usually no out-of-pocket costs to the borrower.

 

What consumer protections are in place?

 

Reverse Mortgages are non-recourse consumer loans – the loan payoff can never exceed the value of the home. To get a Reverse Mortgage, the customer must attend a mandatory counseling session and review their financial situation with a trained, professional Reverse Mortgage counselor. Many of the counselors are certified by the AARP. The counselor ensures that they understand the transaction, the costs and their other alternatives.

 

If you have questions regarding Reverse Mortgages or how they may provide life-changing benefits to your clients, contact MLS Reverse Mortgage at 1-888-888-4834 or www.mlsreversemortgage.com.

 

Fixed Rate Reverse Mortgage

 

MLS Reverse Mortgage

 

Mike Borba (President of MLS Reverse Mortgage) is a broker that has been in the mortgage and real estate field since 1980. Toll Free (888) 888-4834. Visit our website. Read more of our articles online. Read frequently asked reverse mortgage questions.