Social Security Disability payments are guaranteed income! Banks love this type of payments. It is easily verified and guaranteed. Contact Tony Ruff at his website: http://www.tonyruff.com -- he helped a client of mine.
My client a year ago was disabled. We looked at only single story homes and condos-- where the lawn maintenance was included. But then we found an awesome townhome with a master bedroom on the main level, and a one car garage and patio. She now has two more bedrooms upstairs for guests, but doesn't have to go upstairs otherwise. She was able to get a great loan, applied for a tax break, an lives only a few miles from her sister, with easy access to the bus line and close to her doctors.
And the best part is this: She's paying less than she was paying in rent!
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Nate Wolf was recently named a FIVE STAR REALTOR by Charlotte Magazine. He is a top producing real estate sales broker, representing both buyers and sellers. He is a member of the National Association of Realtors, The Charlotte Regional Realtors Association and the Carolina Multiple Listing Services. He is licensed in multiple states and serves all areas of Metro Charlotte from Lake Norman to Lake Wylie and Uptown / Center City to SouthPark and Ballantyne.
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If you have children that you also receive social security disability income because you or your spouse are disabled, that income can be used as long as you can provide evidence that the disability income will be received for the first 3 years of the loan.
Because social secuirty disability income is non-taxable, the lender will gross up the amount by 25%. For example, if the income is $1,000 per month, then the income used to qualify is $1,250.00 per month.
Finally, most states have programs for disabled persons that would allow you to purchase a home within the respective agencies guidelines. You should check with your city, local realtors and lenders to find out what programs might be availible in your area.
In fact, the issue of assets at all is a complete non-issue. SSD is considered a federal insurance entitlement. In other words, you pay into the system over several year via work activity (and this is the case whether you have your fica contributions deducted from a paycheck or you are self-employed and have to "settle up" with the IRS annually or quarterly) and if you own one home or twenty homes it makes no difference.
SSI disability, however, is different. SSI is need-based and SSI disability benefits are available to adults and children who are not insured and, thus, not covered for social security disability insurance benefits. For SSI, assets are absolutely a consideration and, in fact, the cap on assets for this program is two thousand dollars. Meaning: you cannot have more than two thousand dollars in countable assets and retain eligiblity for SSI.
Obviously, any home will be worth more than two thousand dollars as an asset. However, countable assets for SSI disability eligibility does not include the residence you live in. So, to answer the question we began, "can you buy a house or home if you receive Social security disability or SSI?", we can state the following----
1. For social security disability, it doesn't matter and assets are not a consideration.
2. For SSI, assets are a consideration in determining a person's eligibility, but will not be an issue as far as one's residence is concerned. Real property will, however, be a consideration for any real property that is owned aside from one's residence. And in such cases, the fair market value of excess real property will be used to count against the two thousand dollar asset limit for SSI disability.
You can also go to flatlistingmls (which leaves out the realtors, so that ppl can sell thier homes for less b/c they aren't paying the 6%+ to realtor -- just make sure to get an inspection!done!) and search there for 'owner financing' or 'rent to own' and do without all the 'qualifying' info listed below. fwiw i'm not a realtor or broker, but i sold my last home using Flat Fee MLS :) RE attys deal with flat listing mls a lot and really all you need to buy/sell a house is a RE atty, not a realtor. realtors are becoming like typewriters,(ie obsolete)
same goes for Craig's List, have several friends who've bought/sold places on there or eBay. just make sure you have an atty draw up the docs!
Qualifying for a loan to buy a home, car, appliances or any other type of credit is based on your income, obligations and credit score. Social security disability income is income. If it is permanent and verifiable it will be considered for purposes of qualifying you to buy a house. There is much more involved. Speak to an experienced local lender for details.