Home Buying Help for People With Disabilities
- Author: Margaret Hills
- Posted: 2024-11-18
These special options often have easier rules for qualifying, like lower credit scores or smaller down payments. Some even provide money to help pay for making the home you buy fit your needs better.
Can You Buy a Home With Disability Income?
Yes! If you get a steady and reliable disability income that's expected to continue, lenders will consider this when you apply for a home loan.
It's important to know that lenders can't ask about your disability, but they will ask about your income. Even if you don't work a typical job, many home loan programs are okay with disability income.
Can You Buy a House on SSDI or SSI?
Yes, you can. Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) can both be used as income when applying for a mortgage.
Many lenders recognize these as solid income for disabled borrowers. And beyond typical home loans, there are specific housing assistance programs for those on SSDI and SSI, including grants.
What You Need to Qualify
Just like any income for a mortgage application, you need to show proper documents for your disability income.
The key is proving that your income will continue for at least the next three years or, if you're recovering and plan to return to work, that you have a job lined up that will pay the same as before.
For long-term disability income, your lender will want to see either a disability policy or a statement from the person or company paying your benefits.
For SSDI or SSI, you can show the Social Security Administration's award letter or your current receipts as proof.
Home Loans for Disabled Home Buyers
There are many home loans meant to make life easier for disabled buyers:
- Fannie Mae HomeReady loan: This program offers competitive interest rates, small down payment requirements, and flexible credit rules, considering incomes like Social Security and disability benefits. You'll need a decent credit score, a down payment as low as 3%, and have an income not exceeding 80% of your area's median income. The good part? Your down payment can come from gift money or disability grants, making it easier to get started.
- FHA home loans for disabled adults: These government-backed loans are friendly toward those with lower credit scores or incomes. An FHA loan lets you have as small as a 3.5% down payment if you qualify and will accept disability income with proper documentation. Plus, all your down payment and closing costs can be covered with help from assistance programs or gifts.
- VA home loans for disabled veterans: If you're a disabled vet, VA loans are one of the best options available. They offer terms that are very beneficial, including no down payment or mortgage insurance requirements. What's more, disabled veterans might be eligible for waivers on the VA funding fee, making these loans even more affordable.
Check out: Homelessness Among Veterans Reaches an All-Time Low
Final Thoughts
When looking toward buying a home, being disabled doesn't have to hold you back. There are numerous programs, loans, and grants out there specifically designed to help you move into a place of your own.
Even if you're on a fixed income from SSDI or SSI, home ownership is within reach. If one lender denies you, don't give up—others may approve your application. It's all about finding the right program and lender that fits your situation.
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