Hi Again,
I just read the VA's webpages very carefully. Sadly, I think my grandmother makes too much money from her pension and social security to qualify

She is a housebound veteran so she is allowed to make no more than $14,457 per year (
http://www.vba.va.gov/bln/21/Rates/pen01.htm) She makes 40,000 per year!
Even with her medical expenses (caregiver 3 hours/day, every day,ongoing medical prescriptions and medicare deductible), her countable income is over $14,457/per year...Because I cannot subtract the rent she pays correct?
Do I have that right? Was anyone in a similar situation financially? I suppose if she starts to need around the clock care or moves into as assisted-living facility, she will become eligible.
As always, your insight is appreciated!