Financing in Mobile>Question Details

grant, Home Buyer in Mobile, AL

This is more of a question for lenders - for a homebuyer with excellent credit, but ONLY social security as their income, will they likely be able to

Asked by grant, Mobile, AL Wed Oct 19, 2011

get a small home loan? He has a large down payment, excellent credit, but only soc. sec. as his income. Thanks in advance for all answers.

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Hi Suzanne, yes social security retirement income (SSRI) and social security disability income (SSDI) can both be used to qualify. It is actually a very stable form of income in the lender's eyes because it is going to continue indefinitely - it won't end like employment or self-employment income could. If the income is non-taxable, you can gross it up by 125% for qualifying purposes (so $1,000/mo of received income turns into $1,250/mo of qualifying income). Using SSRI & SSDI to purchase a home as your primary residence can practically be done anywhere, since the income will always move with wherever the person moves.
1 vote Thank Flag Link Wed Oct 19, 2011
Generally speaking, In order to obtain a mortgage, lenders are looking for credit history, credit score, loan to value, how much money you have for a downpayment and income. Your social security is your income. Get in touch with a mortgage broker that can review all your documents and give a pre approval letter for the amount that you afford.

Best of Luck,

Maria E. Cipollone
1 vote Thank Flag Link Wed Sep 26, 2012
Conventional and FHA Underwriting guidelines allow for Social Security income to be use as qualifying income for a mortgage loan. There are different methods used to include Social Security Income in the qualifying calculations. Best to meet with a Local Mortgage Banker to get thoroughly prequalified based on the total financial picture: Income, Assets, Credit.

Trevor Curran
NMLS #40140
0 votes Thank Flag Link Thu Sep 27, 2012
For low income families the best loan is the USDA Direct
Lowest interest rate and government subsidies

"Terms: Loans are for up to 33 years (38 for those with incomes below 60 percent of AMI and who cannot afford 33-year terms). The term is 30 years for manufactured homes. The promissory note interest rate is set by HCFP based on the Government’s cost of money. However, that interest rate is modified by payment assistance subsidy."
0 votes Thank Flag Link Sat Oct 29, 2011
That truly is a lender question. He would need to let the lender know his total income, any recurring debts he'd have such as credit cards, car payments (not insurance, etc.) and the down payment funds available. Then the lender can help him out to decide which kind of loan would work the best. It would all depend on the debt to income ratio and without knowing the price of the house, the debts he has and the down payment amounts, it's not possible to know what that would be, I should mention too, that age is not a hindrance to being able to get a loan. It's very possible that this would work out. Call a lender! Go for it!!
0 votes Thank Flag Link Thu Oct 20, 2011
It's possible if the homebuyer qualifies; therefore he needs to visit with any loan officer, after reviewing his overall financials, credit, debt, income, etc. a determination on qualification, the type of loan etc., can be made; be aware that a mortgage pre-approval letter is required in order to determine price range and for any offers to be taken seriously.
0 votes Thank Flag Link Wed Oct 19, 2011
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