Obtaining a mortgage can be difficult if you are disabled. Why? Most disabled folks receive a large percentage of their monthly income from Social Security payments. Some lenders consider this income source only secondary to a primary, earned form. Therefore, disabled folks have difficulty qualifying for traditional mortgages. There are a few ways to help, however.
How to Get Help With Mortgage If Disabled
Research the "Home Choice" program through Fannie Mae. This program helps disabled citizens gain home ownership by paying most closing costs, and requiring small down payments on properties (usually between $500 and $1,000). These programs are restricted to low-income borrowers, so be sure to read the requirements carefully.
Research the new law concerning Section Eight housing. Section Eight housing traditionally helped lower-income citizens by giving subsidies (normally paid to landlords) to supplement their income. This had been restricted to renting only. However, the new law, passed in 2000, allows for this portion of the federal subsidy to be applied to a mortgage payment. Contact your local lender to see if they participate in the program.
Contact your state Attorney General to see if your state participates in lending to disabled citizens. Some states offer programs for first-time, disabled homeowners for mortgages up to $100,000 at interest rates lower than the national average. These programs are rare but, when offered, are a fantastic way to achieve home ownership.
Contact the Center for Independent Living. This organization works directly with low-income, disabled citizens to secure housing. While the aforementioned resources may not exactly fit your needs, the employees at CIL will work tirelessly to obtain housing for all who cannot earn a regular wage due to disability.