If you know how to find them, you canÂ get a mortgage with a disability. Qualifying for these mortgages can be easier than for traditional home loans, and they offer some of the lowest interest rates available.Click to see today's rates (Sep 23rd, 2017)
Special mortgagesÂ exist for people with disabilities, and for parents buying a home for a disabled child. In addition, there are mortgage programs for able-bodiedÂ people who live with qualified disabled residents. For instance,Â a caretaker who shares a home with his disabled sibling might get aÂ special mortgage.
If youÂ receive government disability income, you are probably eligible for several mortgage programs. That's also true if you work but earn a low income.
Program requirementsÂ depend on who will own and occupy the property, and how the occupants will pay their mortgage. They also depend on whether the program is federal, state or local.
Here are several of the best-known plans, including programs offering down payment assistance.
Managed by Housing and Urban Development (HUD), this program is for Housing Chance Voucher Program or Section 8 participants.
Not every Public Housing Authority (PHA) participates, but those that do allow rental voucher holders to buy homes. If you donâ€™t have a Section 8 voucher, you can apply for one. However, waiting lists may be long.
As a housing voucher holder, youâ€™ll pay around 30 percent of your adjusted monthly income for your housing.
USDA single family housing Direct home loans
The USDA oversees two programs, a Guaranteed program and a Direct program. The Direct program offers special subsidized financing for low-income households.
You donâ€™t need a down payment for this mortgage. In addition,Â your fixed interest rate can be as low as one percent.
Importantly, don't borrow unless you plan to stay. Because, if you leave or transfer the title, you haveÂ to repay part or all of your payment assistance immediately.
Borrowers can use the loan to buy a new or resale home. In addition,Â they can build, repair or renovate a house. The payback period is 33-to-38 years. This extended repayment, combined with the low rate, helps make payments affordable.
Buyers with moderate income should consider the Guaranteed home loan program. It has higher income limits and offers more options for borrowers.
With the Direct program, the government actually lends the money. However, the Guarantee program just backs loans made by private lenders. It's kind of like the FHA loan but only available in rural areas.
In addition to the mortgage benefits available to qualified veterans, wounded warriors have extra advantages when obtaining a mortgage with a disability. Those include:
Also, check with your state tax agency to see if youâ€™re eligible for a property tax exemption and / or a mortgage credit. Requirements vary by state, level of disability and other factors.
Two national programs help low-income disabled people become homeowners. Habitat for Humanity builds accessible homes. Â Also, it provides affordable mortgages to those approved for their program. You apply through the local affiliate, and you must be willing to help build your home.
Another option is Rebuilding Together AmericaCorps. The agency prides itself on building homes for families with one or more disabled members.
Homes for Our Troops offers mortgage-free homes for veterans wounded in overseas combat after September 11, 2001. You must be retired or in the process of retiring and pass a criminal and credit background check.
There are manyÂ state and local resources for home buying help. Among those are the National Council of State Housing Agencies and HUDâ€™s Local Homebuying Programs. Also, if you need it, you can find down payment assistance specifically for disabled home buyers.
Current mortgage rates for all programs, including those for disabled borrowers, are very, very low.Â However, you should still shop with several competing lenders and choose the most competitive deal.Click to see today's rates (Sep 23rd, 2017)
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.
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2017 Conforming, FHA, & VA Loan Limits
Mortgage loan limits for every U.S. county, as published by Fannie Mae & Freddie Mac, the Federal Housing Administration (FHA), and the Department of Veterans Affairs (VA)