If you’re an individual with a disability, you can buy a home. As long as your disability income is stable and expected to continue, lenders can use it to qualify you for a mortgage. You don’t have to disclose your disability—just your income.
Programs like FHA and VA loans, along with grants for buyers with disabilities, can make homeownership more affordable and accessible.
Yes. Both SSDI and SSI are accepted by most lenders as reliable income for home loans. These benefits qualify you for major loan programs like FHA, VA, USDA, and conventional mortgages. There are also disability-specific home loans and grants designed to help you buy a home.
Keep in mind, lenders have different rules, if one says no, try another. Your chances of approval increase when you shop around.
Disability income requirements for home loans
To use disability income (SSDI, SSI, or long-term disability) on a mortgage application, you’ll need to meet a few basic requirements:
Provide an SSA Award Letter showing your disability benefits amount and start date.
Show proof you are currently receiving disability payments (e.g., recent bank statements).
Confirm that your disability income is expected to continue for at least 3 years (usually stated in the SSA letter).
If you have long-term disability insurance, provide a statement showing your monthly benefit and how long it will last.
If you’re not the disability recipient (like a parent buying for a child with a disability), submit the recipient’s SSA letter and proof of income, and prove the home will be occupied by the recipient.
Home loans vs. grants for home buyers with a disability
When it comes to home buying assistance for borrowers with disabilities, it’s important to understand the distinction between grants and home loans.
Housing grants for people with disabilities don’t require repayment and are typically provided by government entities or non-profits. On the other hand, home loans for individuals with disabilities are borrowed funds that need to be repaid over time but can offer more substantial amounts to finance the entire home purchase.
Usually smaller amounts to assist with down payments or fees
Larger amounts to cover full home purchase or refinancing
Purpose
Help with down payment, closing costs, or repairs
Finance entire home purchase or refinance mortgage
Eligibility
Often income and disability-based
Income, credit, and disability considered
Impact on Credit
No impact on credit
Affects credit, requires approval
Home loans for buyers with disabilities
Special mortgage and grant programs exist to support people with disabilities—and those buying homes for family members with disabilities—in achieving affordable, accessible homeownership.
Eligibility criteria vary but typically consider income, disability status, and who will live in the home. Programs can be offered at the local, state, or federal level, each with its own guidelines.
Here are some of the most popular programs for buyers with disabilities:
1. Fannie Mae HomeReady
Ideal Candidate
Limited cash for down payment
Lower income
Looking to purchase or refinance
First-time or repeat home buyers
Fannie Mae HomeReady loan helps low- to moderate-income borrowers, including individuals with disabilities, access affordable financing with flexible income and credit guidelines.
Requirements
Credit score of 620 or higher
Minimum 3% down payment
Income no more than 80% of area median income (AMI)
Must occupy the home as a primary residence
Use of eligible income sources like SSDI and SSI allowed
Key Benefits
Entire down payment can be gifted or covered by assistance programs
Non-occupant co-borrowers (like a parent or sibling) can help qualify
Lower interest rates than standard conventional loans
Flexible income guidelines, including Social Security and long-term disability income
FHA loans are a popular option for adults with disabilities who may not qualify for traditional mortgages due to low income or credit challenges. These government-backed loans offer flexibility and accessibility, while allowing the use of disability income when applying.
Requirements
Minimum credit score of 580 to qualify for a 3.5% down payment
Stable, documented income, including SSI or SSDI
Acceptable proof of disability income: tax returns, SSA benefit letters, or bank statements
Key Benefits
Low down payment requirement (as little as 3.5%)
Flexible credit standards for applicants with lower scores
Disability income accepted as qualifying income
100% of down payment and closing costs can be covered by assistance or gifts
Competitive interest rates compared to other low-credit options
VA loans offer powerful homebuying benefits to eligible veterans, including those with service-connected disabilities—often with no down payment or funding fee required.
Requirements
Must be a qualifying veteran, active-duty service member, or eligible surviving spouse
Credit score of 580–620 (typical lender requirement)
Disability income (e.g., VA benefits) can be used for qualification
Must meet basic VA underwriting standards
Additional Benefits
No down payment required
No VA funding fee for veterans with service-connected disabilities or eligible spouses
Some veterans discharged due to service-connected disability may still be eligible - verify via your Certificate of Eligibility (COE)
May qualify for property tax exemptions or mortgage tax credits (varies by state)
USDA loans offer affordable, zero-down financing for eligible home buyers with disability income, especially those in rural areas. Two options are available: USDA Guaranteed and USDA Direct.
Requirements
USDA Guaranteed Loan:
Moderate income (no more than 15% above area median)
Credit score of 640+
Home must be in a USDA-eligible rural area
Apply through an approved private lender
USDA Direct Loan:
Low income (typically below area median)
Must lack safe, decent, or sanitary housing
U.S. citizen or eligible non-citizen
Apply through your local Rural Development office
Program Benefits
No down payment required
Subsidized payments for USDA Direct borrowers
Funds can be used to build, repair, or renovate a home
Extended repayment terms up to 38 years for Direct loans
The Housing Choice Voucher (HCV) homeownership program, run by HUD, allows eligible voucher holders — including people with disabilities — to buy a home instead of renting. This program helps cover mortgage payments and other housing costs for qualified buyers.
Requirements
You must already have a Section 8 Housing Choice Voucher
Meet minimum income standards, typically at least the federal SSI benefit for an individual living alone
Purchase a home that meets HUD’s property requirements
Complete a pre-assistance homeownership counseling program
Not all Public Housing Authorities (PHAs) participate — check with your local PHA
Program Benefits
HUD helps pay your mortgage, taxes, and insurance
Covers utilities, maintenance, and major repairs
Can fund accessibility improvements like ramps or bathroom modifications
You typically contribute about 30% of your adjusted income toward housing
Grants to help buyers with disabilities buy a home
Every state has a selection of down payment assistance programs (DPAs), which offer funds to help cover a home buyers’ down payment and/or closing costs. These are typically designed for first-time home buyers and those with low to moderate incomes.
Here are some options for buyers with disabilities:
1. Down payment assistance grants
Ideal Candidate
First-time home buyer
Lower income
Limited cash for down payment
Buying within specific state or local area
Down payment assistance grants help cover down payment and/or closing costs, mostly for first-time buyers or those with low to moderate income. They can reduce the financial barriers often faced by buyers with disabilities.
Requirements
Income limits vary by state and program
Usually designed for first-time homebuyers (some exceptions apply)
Key Features
Offered by state Housing Finance Agencies, local governments, and nonprofits
Helps reduce upfront costs to make buying a home easier
May require completion of homebuyer education courses
2. VA grants
Ideal Candidate
Veterans with service-connected disabilities
Lower income
No cash for down payment
First-time home buyer
The Department of Veterans Affairs (VA) offers home loan programs and home modification grants to help veterans with disabilities buy a home or make their current home more accessible.
Eligibility Requirements
Disability must be service-related, as officially determined by the VA
Must live in or be in the process of purchasing the home for which the grant is intended
Available VA Grants
Specially Adapted Housing (SAH) Grant: The largest VA grant, used to buy, build, or modify a permanent home. Limited to 120 disabled veterans annually.
Special Housing Adaptation (SHA) Grant: A smaller grant to buy, build, or modify a permanent home for disability-related needs.
Temporary Residence Adaptation (TRA) Grant: Helps make accessibility upgrades to a family member’s home where the veteran is temporarily living. Eligibility requires qualification for either the SAH or SHA grant.
3. USDA single-family housing repair grants
Ideal Candidate
Owns a home in a rural area
Low income
Over 62 years old
Limited funds for renovation
Helps low-income homeowners repair, improve, or modernize their homes and remove health and safety hazards.
Program Features
Provides financial help to low-income homeowners for home repairs and safety improvements
Offers both grants (up to $10,000) and low-interest loans (up to $40,000)
Grants require no repayment; loans have a 20-year term at 1% fixed interest
Grants and loans can be combined for up to $50,000 in assistance
Designed to support seniors (62+) who cannot repay loans
Prioritizes homeowners who cannot secure affordable credit elsewhere
Eligibility Requirements
Must own and live in the home being repaired
Unable to obtain affordable credit elsewhere
Household income below the county’s “very low” income limit
For grants: Age 62 or older and unable to repay a repair loan
4. Nonprofit help
Ideal Candidate
Individuals with disabilities
Low income
Limited cash for down payment
First-time home buyers or current homeowners
Several national nonprofits provide tailored homeownership assistance for individuals with disabilities and low-income families, offering loans, grants, and accessible housing solutions.
Types of Nonprofit Assistance
National Disability Institute (NDI) Works to improve financial opportunities for people with disabilities and their families through education, technical assistance, and collaboration with housing programs and lenders.
Habitat for Humanity Builds ADA-compliant homes and offers affordable, disability-inclusive home loans. Applicants contribute “sweat equity” through construction, classes, or volunteering.
Rebuilding Together AmeriCorps Focuses on building and modifying affordable, accessible homes for families with disabled members, especially those facing mobility challenges.
Homes for Our Troops Provides specially adapted, mortgage-free homes to post-9/11 disabled veterans, ensuring safe and barrier-free living environments.
Grants to buy a house for parents of a child with disability
Parents and caregivers may be able to access grants often designed to help with down payments, closing costs, or home modifications before turning to loans.
While grants to buy a house for parents of a child with a disability are limited, there are broader housing assistance options available through federal, state, and nonprofit organizations. Some programs offer no-repayment grants that can help offset upfront costs or fund accessibility modifications, particularly for low- to moderate-income families.
In addition, certain national programs, such as those from the USDA and the Department of Veterans Affairs, may provide grants to buy a house for parents of a disabled child. State housing agencies and local nonprofits also administer down payment assistance and housing support programs that may be available to families with disabled dependents. Eligibility and funding amounts vary by location, so it’s worth exploring what’s offered in your area.
If grant funding doesn’t cover the full purchase, parents can explore special home loans tailored for buying a primary residence for a child with a disability:
Fannie Mae home loans
Ideal Candidate
Parent of a child with disability
Limited cash for down payment
Lower income
First-time or repeat home buyers
Requirements
Parent or legal guardian purchasing a home for their disabled or handicapped adult child
Child is unable to work or lacks sufficient income to qualify independently
Home must be owner-occupied by the parent or guardian
Key Features
Home purchase counts as owner-occupied, making loan qualification easier
Access to various conforming loan options with low down payments:
3% down Conventional 97 loan
5% down Conventional 95 loan
10% down piggyback loans with no PMI
20% down conventional loans with no PMI
Lower interest rates without the markups typically charged for second homes or investment properties
Using Social Security benefits
Ideal Candidate
Parent receiving disability benefits for a child
Buying a home for a dependent with a disability
Limited cash for down payment
Lower income
Requirements
Parent or legal guardian must receive Social Security disability benefits for a child or dependent
Must provide:
SSA award letter
Proof of current benefit receipt
Evidence the income will continue for at least three years
Key Features
Disability benefits income can be used to qualify for a mortgage
Helps parents and guardians secure home loans for disabled individuals
Provides lenders with verified, stable income for mortgage approval
Disability rights for home buyers
For people with disabilities, navigating the housing market can be difficult. Understanding your legal rights is key, especially when seeking home loans or housing grants for people with disabilities.
Fair Housing Act: This act prohibits discrimination in housing based on disability. It mandates accessible features in buildings constructed post-1991, ensuring housing accessibility for individuals with disabilities.
Americans with Disabilities Act (ADA): This law, passed in 1990 and updated in 2009, ensures equal access for people with disabilities in public spaces and services, reinforcing their rights in various sectors, including housing.
Equal Credit Opportunity Act (ECOA): Enacted in 1974, ECOA protects individuals, including those with disabilities, from credit discrimination, ensuring fairness in financial transactions such as mortgages.
Section 504 of the Rehabilitation Act of 1973: This section forbids organizations receiving federal assistance from discriminating against individuals with disabilities. It guarantees equal access to services and benefits, including those related to housing.
These laws protect the rights of people with disabilities in the housing market, assisting them in finding appropriate and equitable housing solutions.
Yes, common home loans for buyers with disabilities include government-backed options such as FHA loans and VA loans, which offer flexible credit requirements, lower down payments, and competitive interest rates. Also, programs like Fannie Mae's HomeReady Mortgage and Freddie Mac's Home Possible Program are designed to meet the needs of disabled and low- to moderate-income borrowers, making homeownership more accessible and affordable.
There are special programs like Fannie Mae's HomeReady Mortgage and Freddie Mac's Home Possible Program that can help people with disabilities buy homes. In addition, there are various grants designed to help adults with disabilities buy a home, such as down payment assistance programs and government home loans for buyers with disabilities, like FHA and VA loans, that have easier credit requirements and lower down payments. Additionally, home-buying assistance and grant programs for adults with disabilities are available from state, local, and non-profit grant programs, as well as HUD and the National Council of State Housing Agencies.
Yes, there are home loan options available for people with disabilities with bad credit. Even though it can be harder to get a mortgage if you have bad credit, FHA loans are well suited for people with disabilities who want to buy a new home. This type of loan is an attractive option for individuals with disabilities with bad credit, as they accept credit scores as low as 500 with a 10% down payment or 580 with a 3.5% down payment.
Yes, FHA loans accept disability income, as long as it is stable, reliable, and likely to continue for at least three years from the date of the mortgage application. Borrowers using disability income to qualify for an FHA loan need to provide proper documentation to verify the source and amount of the income. This documentation may include award letters, bank statements, and medical documentation, to name a few.
The U.S. government defines disability through the Social Security Administration (SSA) and the Americans with Disabilities Act (ADA). A person is considered disabled by the SSA when they have a medical condition that keeps them from doing substantial gainful activity for at least 12 months or is expected to result in death. The ADA defines a person with a disability as someone who has a physical or mental impairment that substantially limits one or more major life activities. Both of these definitions focus on how the disability affects a person's ability to do important tasks or take part in everyday activities.
The U.S. Department of Housing and Urban Development (HUD) defines a person with disabilities as someone who has a physical or mental impairment that substantially limits one or more major life activities, has a record of such impairment, or is regarded as having such an impairment. This definition excludes individuals currently using illegal controlled substances, those addicted to a controlled substance, or those convicted for the illegal manufacture or distribution of a controlled substance.
To be eligible for disability housing assistance through HUD, an individual must meet HUD's definition of disabled, have a very low income (generally below 50% of the area median income), be a U.S. citizen or have eligible immigration status, and meet other program-specific disability income requirements, which can vary depending on the specific housing assistance program.
Yes, HUD offers several disability assistance programs. One primary program is Section 811, the Supportive Housing for Persons with Disabilities program. This program provides funding to develop and subsidized rental housing with supportive services for very low and extremely low-income adults with disabilities. Additionally, HUD offers other programs and initiatives that cater to individuals with disabilities, ensuring they have access to affordable, accessible housing and supportive services.
Additional resources
Looking for more information? We’ve created additional articles that explore specific loans for people with disabilities. Be sure to check out the resources below to dive deeper into your options.
Dahna Chandler is an award-winning business and finance journalist with 20 years of experience writing for major media outlets and top blogs. She is passionate about helping wealth-minded people thrive financially by reaching their wealth objectives.
Aleksandra is an editor, finance writer, and licensed Realtor with deep roots in the mortgage and real estate world. Based in Arizona, she brings over a decade of experience helping consumers navigate their financial journeys with confidence.
The information contained on The Mortgage Reports website is for informational purposes only and is not an advertisement for products offered by Full Beaker. The views and opinions expressed herein are those of the author and do not reflect the policy or position of Full Beaker, its officers, parent, or affiliates.
By refinancing an existing loan, the total finance charges incurred may be higher over the life of the loan.
