13 Feb My mom gets SSI. Can I buy her a home to live in?

Q. My 77-year old mother has SSI and falls under the low — or very low — income category. She does not have any assets or resources to purchase a property. As such, I would like to purchase a low-income affordable housing condo for her in New Jersey, either taking a mortgage loan or making a cash payment. If so, is it possible to have my name on the deed even though I don’t fall under low income? After her passing, how does transfer of deed work?
— Daughter

A. That’s a kind move you’d like to make for your mom.

Unfortunately, it won’t be easy.

Let’s start at the beginning.

Supplemental Security Income (SSI) is a federal program that supports people with limited resources, said Jeanne Kane, a certified financial planner with JFL Total Wealth Management in Boonton.

To qualify, one must be 65 and older, blind, or disabled, a U.S. citizen or national and have limited resources and income, she said.

You must have less than $2,000 in cash, bank accounts and investment assets, but the home you live in, and usually your car, are not included, she said.

If you qualify, you become eligible for monthly payments, but benefits can be reduced by living arrangements, she said.

For starters, your mom needs to pay for her own food and shelter, Kane said. Money for food or shelter that she receives from someone else may reduce her SSI benefit, she said.

“Unfortunately, your mom can’t buy a low-income affordable housing condo because she doesn’t have the resources,” she said. “Banks will want to review her ability to repay the loan. Without the means, she won’t qualify.”

And you probably won’t qualify to have your name on the deed because your income is too high.

While owning a home and using it as a primary residence doesn’t disqualify your mom from receiving SSI benefits as the home would be considered an excluded asset, but it’s complicated because whatever you gift could reduce or eliminate her SSI benefits, she said.

You should speak to an attorney who specializes in elder care and low-income housing.

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This story was originally published on Feb. 13, 2023.

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