Are you wondering “will I lose my SSI if I sell my house?” To be honest, the answer is not so simple. In this article we will simplify the process and tell you what you need to know to make sure you don’t lose your benefits if you decide to sell your house.
What is SSI?
SSI, or Supplemental Security Income, is a monthly federal benefit for basic needs like food, clothing, and shelter. This tax revenue funded program is available to qualified individuals over 65, disabled adults, and children.
To be eligible for SSI, an individual must have less than $2000 in assets. This number increases to $3000 for married couples. This includes available resources like cash, savings or retirement accounts, additional real estate (aside from primary residences), and vehicles. If the assets of a person receiving SSI exceeds this cap, they may become ineligible for their benefits. That’s why the question, “will I lose my SSI if I sell my house?” is a good one for anyone in this scenario to ask.
You’ll have a window of three months to sell your house and close on a new one before you will be considered ineligible, so time is of the essence. Selling your house for cash is the fastest real estate transaction with the fewest headaches and the best way to buy a new house within that window.
Remaining Eligible for SSI
If you receive SSI benefits, you probably already know that you need to be mindful of your resources to remain eligible for your monthly benefits. When a person who receives SSI sells their home, they will have only three months to close on a new home so that they remain eligible for their benefits.
Real estate transactions can become complicated with inspections, repairs, and negotiations, thus extending the time that it takes to complete the process. A cash sale is always the fastest route to avoid problems that can hold things up.
Types of sales
If you are thinking of selling and wondering, “will I lose my SSI if I sell my home?” then you should consider the type of sale that would offer you the most efficient, time sensitive close.
There are many factors to take into account including current market fluctuations, the condition of your property, and whether or not you own your home or are still paying a mortgage. Often, a traditional sale can be a relatively quick and seamless process, but some factors can lead to delays. The quickest way to sell your home is to sell it for cash.
Check Your Assets
As previously mentioned, your fluid assets cannot exceed $2000 ($3000 for couples), so individuals who sell their home must purchase a new home for close to the amount of the cash they made on their sale.
Individuals who receive SSI and suddenly find themselves with a lot of cash on hand from the sale of their primary residence will need to find and close on a new home. The entire process must be completed within a three-month time frame, or your SSI eligibility will be terminated and you will have to start the application process all over. A quick cash sale will eliminate any time-consuming issues that pop up with a traditional sale.
If you sell your house before you find another home to purchase, you will need to quickly find and close on a new property. And if you purchase a less expensive new home and the amount of cash left over after the purchase exceeds the asset eligibility cap for your SSI benefits, you will need to “spend down” your assets to remain eligible.
Depending on the amount left over, you may be able to use the additional money to update or improve anything in your new home as a way to reduce your cash flow and remain eligible for your SSI benefits.
Sell Your House for Cash to Quick Fix Real Estate
You can search online and find a wealth of information about this process, but it can be overwhelming. Your best bet is to sell your house for cash today, and Quick Fix Real Estate is the perfect buyer. Our simple, three-step process starts with a no-obligation home inspection, and ends with you choosing the closing date and us bringing the check. Contact us today to get your real cash offer