Reverse Mortgage Myth # 8: A Reverse Mortgage Will Affect My Government Benefits Fact: Mostly False First, it’s important to note that proceeds from a reverse mortgage are not considered income. A reverse mortgage generally does not affect regular Social Security or Medicare benefits. However, if you are on Medicaid, any reverse mortgage proceeds that you receive would count as an asset and could impact Medicaid eligibility. To be sure, we always recommend that potential borrowers consult their federal benefits administrators or financial advisors.