They don't allow for mortgage payments, but you can have a rev mort because no payments are required.Medicaid will exempt a home (trust or not) if the client lives in it, or if the community spouse lives in it... but you also have to be able to afford to keep it.Cart before horse here with info and not enough details, let's PM.

I eventually found a deal in an area close to a major medical center, the University, and a military base. 

You can go after them for a garnishment, but keep in mind that a certain amount of income is exempt.

Is it because of something like medical bills or school loans  that may have happened in the distant past or is it low because they have been late or don't pay utilities?

I live in the Medical Centre area and had the water touching the bottom of my door.

First, you must select an exemption at the state or federal level that allows you to do what you want to do, such as Regulation D, rule 506(b) or 506(c), or an intrastate exemption (where everything – you, the property and your investors are all in one state).

Hi Quinton,This may or may not be applicable to you, but if by "unemployed" you mean "on temporary disability, but my job is waiting for me when I get better, and we have an estimated return to work date," than this would be a scenario where ADA trumps ATR and you can still get a traditional mortgage.Fannie guideline on long-term/permanent disability, on social security disability, and on what may be applicable to you: "temporary leave income," which includes short term medical disabilities.For that last one:Just like women/men on maternity/paternity/pregnant leave, a gap between temporarily reduced income due to medical condition, and your normal income, can be made up for using asset depletion.

I won't have a down payment and I'm exempt from property taxes.

There is a medical office unit for sale in my area.

The one real exception being exposure to UDFI taxation on leveraged investments that a Solo 401(k) is exempted from.