She has a Reverse Mortgage right now and limited income.

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Skilled nursing facility = Nursing Home
Assistance but less skilled nursing = Assisted Living Facility

Since your Aunt has dementia, it is also possible that she'll need what is called Memory Care.

Who told you she'll need skilled nursing facility? Did they specifically mean a nursing home, or more generically a care center? The first step is to determine the appropriate level of care. Discuss this with the social worker and discharge planner where she is now.

Once you know the level she needs, you begin looking at the local choices, one by one. Check them out online. Visit the most promising ones.
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If you plan on visiting her later on, do yourself a favor and find an ALS which is nearby to you.

At the same time, because of the Reverse Mortgage, I would definitely consult with an Elder Lawyer and begin preparing what needs to be done ahead of applying to Medicaid - you want to make sure you take the right steps AHEAD of sending in the application to Medicaid.

Then, know that you cannot apply to Medicaid until the person has actually entered the nursing facilities.

Again: Best consult an Elder Lawyer, as Reverse Mortgage is a financial status which needs to be addressed in the proper way ahead of applying, so that your aunt not loose what she has.
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Has she been assessed as being appropriate for Assisted Living?

Is Assisted Living covered by Medicaid in her state? If it is, you should probably get started on a Medicaid application right away. The rehab will/should help.
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