My home’s value rose over the limit. What now?

My home’s value rose over the limit. What now?

Short answer: If no spouse or protected child lives there, equity above the state’s limit can block Long-Term Care Medicaid. Reducing equity with a loan, selling, or an exempt transfer may help.

Figures change periodically. Double-check current amounts before relying on them.

Federal law bars Long-Term Care Medicaid for an applicant whose home equity is above the state’s limit (between $752,000 and $1,130,000 in 2026, depending on the state), unless a spouse, a child under 21 or a blind or disabled child lives in the home. Rising home prices have pushed some homes over the limit.

Options include:

  • Borrowing against the home, with a home equity loan, line of credit or reverse mortgage, to bring equity below the limit. Loan proceeds kept past the month become countable assets, so plan their use.
  • Selling the home and using the proceeds in allowed ways.
  • Transferring the home to an exempt person, such as a caregiver child or a sibling with an equity interest who meets the residency rules.
  • Checking the valuation. Equity is market value minus debts. An appraisal may show a lower value than an assessment.
  • Hardship. States must have a process to waive the limit in cases of demonstrated hardship.

From January 1, 2028, no state may use a limit above $1,000,000, with some exceptions for farm property, which may lower limits in some states.

Getting help

Every situation is different, and small facts can change the answer. If this question affects a real decision, especially with a spouse at home, a home, gifts or a trust, a Certified Medicaid Planner can apply your state’s rules to your situation. As a rough guide, published fees for help with an application range from about $500 to $6,000, and hourly help from about $150 to $600.

Last updated for 2026. General information only, not legal or financial advice. Medicaid Answers is a free educational resource published by Medicaid Answers Foundation.

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