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Can I Use Social Security Disability Benefits To Buy A House?


You may be interested in buying a home, but you probably think you’re out of luck because you don’t work due to a disability. However, if you receive monthly Social Security Disability benefits, you may qualify for a mortgage.

Each lender has different requirements, but if you meet them, it is possible to buy a home. You need income, a down payment, and good credit. You also need to make sure you have little debt.

However, even those who work and earn regular income often have trouble qualifying for a mortgage, so it’s not easy. It is very hard to live off Social Security Disability benefits. The average amount is just $1,358 per month. Many people receive even less. The maximum amount is $3,345 per month, and it’s very rare to receive this much.

The average price of a home in New York is close to $400,000. They can go for much more, so you’d be very lucky to be able to qualify for a home.

However, your disability benefits do count as income. Your lender will consider income that comes from a variety of different sources, including disability benefits, child support payments, and public assistance. As long as your debt to income ratio is not too high, you can get a mortgage.

The main thing your lender wants to see is that you can afford your monthly payments now and you will be able to continue to afford them in the future. If you have sufficient income and plan to do so for at least three years, then you will likely qualify in that regard. You will need to provide proof of income, such as an SSA-1099 form or a Social Security Administration award letter.

But there are other hurdles to go over. The lender will also look at your credit, debts, and assets. For a conventional mortgage, you’ll need a credit score of at least 620. Your debt-to-income ratio must be under 50%. You will also need a down payment, unless you have a USDA or VA loan. For conventional loans, the minimum down payment is 3%.

One nice advantage is that lenders can “gross up” non-taxable income. What this means is that if you, for example, receive $2,000 of non-taxable SSDI income each month, it is actually equal to $2,500 per month, since you aren’t paying taxes on it.

You may be wary about using your disability income to buy a house, but keep in mind that lenders must consider disability benefits income, and they can’t treat you differently because of it.

Learn More About Social Security Disability Benefits 

You can still buy a house if you only receive Social Security Disability income. You just need to be able to meet the lender’s requirements, which can be hard if your monthly income is low.

Contact a White Plains Social Security Disability lawyer from The Law Office of Michael Lawrence Varon to learn more about what you can do with your benefits. Schedule a free initial consultation by calling (914) 228-1770 or filling out the online form.



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