If you have a disability, you likely want to limit as many unknowns as possible. Strategizing homeownership might be among your goals to protect your stability and health. Can a disabled person get a home loan to cover those steep purchasing costs?
Champions Mortgage Team answers this question below and discusses resources that might help you reach your goal more easily.
First, Know How the Government Defines Disability
Not all disabilities are visible to outsiders. One could use a mobility aid to get around or struggle with a mental condition that requires or is improved by no equipment.
The federal government fluidly defines disability under the Americans with Disabilities Act to accommodate this spectrum of conditions:
- Your disability spans at least 12 months and keeps you from consistently working full-time.
- Your condition keeps you from participating in or accomplishing one major life activity.
- You have a record of your diagnosis.
If you meet these criteria, you might qualify for assistance for homeownership for disabled individuals.
How Can a Disabled Person Get a Home Loan?
So, what are your best options as far as financial aid for disabled homebuyers? You have several possibilities. Let’s examine what they do and whether you qualify below.
Using SSDI or SSI
Does the majority or all of your income come from SSDI or SSI? Perfect! Many lenders have loans that permit SSDI and SSI mortgage eligibility. You can use either as a stable source of income when applying for applicable loan options. If you find a lender who offers such options, ask what they’ll seek in an application so you can prepare your paperwork.
Applying for Conventional Loan Options
Many people think of government-provided loans when they think of disability home loan programs. However, some conventional or private lenders also provide loans especially designed to support disabled homebuyers.
How can a disabled person get a home loan from a conventional lender? Most mortgage providers look for applicants with:
- At least three to five percent of the total price available for the down payment
- A FICO score of 620 or higher
- A debt-to-income ratio below 43%
Using Qualifying Federal Loans
Federal loans can be easier to obtain, especially if you have a lower income threshold. Take Federal Housing Association loans as an example. It’s often easier to access FHA loans for disabled people because you only need a credit score of 500 and a more flexible DTI compared to its conventional counterparts.
Alternatively, you could apply for a USDA loan if you’d like to skip the down payment. It has slightly stricter qualifications, like a mortgage payment that goes no higher than 29% of your monthly income and DTIs similar to traditional loans. You must also choose rural properties, which may not grant easy, fast access to more urban amenities.
If you served in the military, you might prefer a loan from the Veterans’ Association. It requires:
- No down payment
- No minimum credit score
- No VA funding fees if you became disabled during active duty
Remember Your Rights
As a disabled person, your rights to accessible housing and assistance are protected under federal laws, like the Americans With Disabilities Act and the Fair Housing Act. The ADA ensures you have reasonable accommodations. The Fair Housing Act protects Americans from discrimination based on ethnicity, religion, disability status, and other characteristics. Learn about other consumer protection resources geared toward disabled individuals.
Contact Champions Mortgage Team About a Home Loan in Texas
Can a disabled person get a home loan? They certainly can, and Champions Mortgage Team is here to help. Call us at 281-727-2500 to explore your loan options, then learn how a home equity loan works.
