Are you wondering if you can buy a home on SSI or SSDI benefits? Or is buying one using it will affect your benefits in the future? These are some questions that confuse many people. Find the answers and more in the following section.
The short answer, “Yes, you can buy a home if you’re receiving SSI or SSDI benefits.” However, you’re likely to encounter some problems, which are unique to receiving such benefits.
Buying a House on SSI or SSDI Benefits
It’s a stipend given to people who have a limited income. They are 65 and older and with physical disability. The allowance is given monthly, and as of January 2017, the current SSI rate is $1,103 (couple) or $735 (individual).
Due to the limited monthly income, people receiving SSI benefits find it hard saving money to buy a home, as they also have to pay bills and meet their household needs.
On the web: Supplemental Security Income (SSI) Overview
Can you buy a home on SSI?
Yes, but it does come with many unique challenges. As mentioned, you are receiving a limited monthly income. In many cases, the rules of SSI also limit the assets or income amount to have while receiving the benefits. That is why buying a home on SSI isn’t easy.
For one, beneficiaries cannot possess assets over $3,000 (couple) or $2,000 (individual). For this reason, saving up money with such rule makes it hard for many people to buy a home.
But then, don’t worry because not all assets are counting toward the set limits. For example, your primary home, where you are living, is not counted as an asset. So even if challenges might still get in your way, purchasing a home on SSI is possible.
On the web: Supplemental Security Income (SSI) Benefits
If applying for a loan, your credit score and income are what lenders are going to review – the same way that they would with other applicants. But even if your income and credit score aren’t as good, you might qualify for other programs that will help you buy a home. A home loan, if you qualify, won’t reduce your SSI benefits or count as income.
It’s a stipend to people below 65 years old, but it does require work credits. So before being eligible to receive the benefit, you should prove that you’ve worked sufficiently before applying for the SSDI.
Can you buy a home on SSDI?
Just like people receiving SSI, you will also meet challenges along the way when trying to buy a home.
But then, you’re not going to have the same limitations or restrictions as those receiving SSI have. The main challenge is that neither the recipients nor the lenders cannot tell when the benefits are going to last. For this reason, it is hard for lenders to review and assess if the beneficiary has a stable income.
The Social Security Administration is only going to provide proof that the recipients are getting the benefit but they don’t give guarantee of its future. The administration also does regular reviews for SSDI cases.
When you’re thinking about buying a home on SSDI, you can find many programs and resources. There are also lenders for disabled people, who can use the loan for making improvements in their homes for their disabilities.
More Information on Programs
If you’re looking to buy a home and you’re receiving SSDI benefits, you can apply for programs to help you on it. A few examples include Habitat for Humanity and Individual Development Account. The following are some details about available programs.
- Fannie Mae Community Home Choice: It provides support and assistance to disabled people that want to buy a home even if they’re credit score suffered. However, the assistance will be based on your Monthly Benefit Amount. You can also get assistance from this program should you want to make improvements that will help you with your condition as well.
- Habitat For Humanity: It is one of the programs to help you with home ownership. This program is for low-income families, offering them with low interest mortgages to pay between 7 and 30 years.
- Section 8: It is another program that you can get assistance from if you’re qualified for it and if the local Section 8 is also participating in the program.
There are many ways to buy and own a home for the disabled, and you can also check for nonprofits in your area for support. You can also consult a lender that has the experience with disability benefits for more help.
But will I lose my benefits if I buy a home and use it to pay the home partially?
SSA doesn’t prohibit someone from using his or her benefits when buying a property or a house. Beneficiaries can own a house and lot where they are living; however, other properties are going to be considered as an “asset.” Also, to receive the benefit you should not have more than $3,000 (couple) or $2,000 (individual).
Definitely, you can still buy a home on SSI or SSDI benefits, but you might meet unique challenges for your situation. Try applying to any of these programs, and find out if you qualify for a home loan on one.
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