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There are options you can take if you want to purchase a house on disability benefits. As a person who has a disability, you can avail of special housing programs, such as grants and loans, giving you an opportunity to achieve your dream of owning a home. 

Read this article to learn more about buying a house if you are a person with a disability. You will also learn in this blog post how to look for housing grants or loans in such cases. 

Purchasing a House on Disability Benefits

You need money to buy a home. But income is not only limited to your employment salary. It can also come from your Supplemental Security Insurance or Social Security Disability Insurance. When applying for a home loan, you can claim the money you receive from such programs as your income as if you are buying a house through any other type of earnings. 

It is advisable to get a mortgage pre-approval before you search for a house. Getting pre-approved for a mortgage gives you an idea on the loan amount a lender is willing to lend you, regardless of your type of income. The lender may also give you information about their loan programs for persons with disabilities. 

There are requirements you must meet when securing a mortgage. Your lender or the loan type you choose may require your credit score and/or debt-to-income ratio. Putting a down payment may also be needed unless you are getting a zero-down mortgage. 

Moreover, it is crucial to know beforehand that it is difficult to find a house designed for disabled access or use. Modifications to make the property to adapt to your needs can be costly. When house hunting, determine the changes necessary, get estimates, and ensure you can afford them. It is better if the house only required fewer changes. 

Housing Grants Specific to Persons with Disabilities

You can avail of housing grants if you find it difficult to save enough money to purchase a home while on disability. As long as you satisfy the requirements, you can get awarded with housing grants based on your merit or need. The good thing about grants is you do not need to pay them back. 

The Department of Housing and Urban Development is a good resource for local home-buying programs that help you make a down payment for a house. Take note, though, that getting this type of assistance still requires you to have sufficient income to pay for your mortgage, insurance, and tax payments. 

The Department of Veterans Affairs also provides two types of housing grants for military veterans with service-related disabilities. A grant under the VA’s Special Housing Adaptation offers up to $22,036, while the Specially Adapted Housing grant offers up to $109,986. Each grant comes with a set of eligibility requirements according to the type of disability. 

Popular Home Loan Programs

It is crucial you know the common house loan programs today and their requirements. Persons with disabilities can avail of these home loans. 

Veteran Affairs Loans

You can get a VA loan to buy a home if you are a military veteran or a family member of a military veteran. This home loan is different from the VA housing grants. The advantage of VA mortgages is that you do not need to have a good credit score or put any down payment. 

Federal Housing Authority Loans

If you have a disability, a low credit score, or someone with minimal income, the FHA loan is a good option. The required down payment for this house loan depends on your credit rating. It is required to put a 10% down payment if your credit score is 500 to 579. If you have a 580 or higher credit score, the required down payment is only 3.5%. 

U.S. Department of Agriculture Loans

You can take out a mortgage from the USDA if you reside in a rural area. The USDA home loan does not require a down payment, but you should have an income below certain limits, and the house should be within an eligible region for you to qualify for the loan. 

The USDA website contains useful information regarding eligibility requirements and restrictions for this loan. This government agency does not spell out a credit score requirement, but lenders usually favor a credit score of 640 and above.

Final Thoughts

Do not worry if you have a disability and want to buy a home. Homeownership is possible thanks to the various housing grants and home loans that you can avail of in such a case. There are housing grant programs from government agencies, such as the Department of Housing and Urban Development and the Department of Veterans Affairs. Mortgages offered by VA, USDA, and FHA are also good options.