Owning a Home and Its Impact on ACA Healthcare Subsidies

Owning a Home and Its Impact on ACA Healthcare Subsidies

The Affordable Care Act (ACA), also known as Obamacare, provides financial assistance to individuals and families who qualify for health insurance coverage. One factor that can affect your eligibility for ACA subsidies is whether or not you own a home.

Why Home Ownership Matters for ACA Subsidies

When you apply for ACA health insurance, you must report your household income and assets. If your income is below a certain level, you may qualify for premium tax credits and cost-sharing reductions, which can lower your monthly premiums and out-of-pocket costs. However, if your assets are too high, you may not be eligible for subsidies.

One type of asset that is considered when determining your eligibility for ACA subsidies is home equity. Home equity is the difference between the value of your home and the amount you owe on your mortgage. If you have a significant amount of home equity, it can reduce your eligibility for subsidies.

How Much Home Equity is Too Much?

The threshold for home equity that will affect your ACA subsidy eligibility varies depending on your income and family size. For individuals and families with incomes below 200% of the federal poverty level (FPL), there is no limit on home equity. However, for individuals and families with incomes between 200% and 400% of the FPL, home equity is considered when determining subsidy eligibility.

For example, in 2023, an individual with an income of $50,000 and home equity of $100,000 would not be eligible for ACA subsidies. However, an individual with an income of $50,000 and home equity of $50,000 would be eligible for subsidies.

What to Do if You Have Too Much Home Equity

If you have too much home equity to qualify for ACA subsidies, there are a few things you can do:

Reduce your home equity. You can do this by paying down your mortgage or by taking out a home equity loan or line of credit.
Increase your income. This could mean getting a raise, starting a new job, or working more hours.
Change your family size. If you have a spouse or children, you may be eligible for more subsidies if you add them to your health insurance plan.


Owning a home can have a significant impact on your eligibility for ACA healthcare subsidies. If you are planning to apply for subsidies, it is important to be aware of how your home equity will affect your eligibility.

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