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Yes, you can buy a house on disability. A mortgage lender can count Social Security Disability Insurance (SSDI), Supplemental Security Income (SSI), VA disability compensation and private long-term disability benefits when you can document the income and it is likely to continue. FHA, for example, won’t count benefits that end within three years of your application. After that, approval comes down to three things: documented income, your debt-to-income ratio and your credit.
There is no special disability mortgage. Instead, you use the same FHA, VA, conventional and USDA loans as any other buyer, and some state and local programs add help for buyers with disabilities.
What disability income lenders count and what to bring
Lenders treat disability benefits as regular qualifying income. So to buy a house on disability, you need proof of the amount and proof that you receive it. On an FHA loan, the lender may verify the income but may not ask about the nature of your disability or your medical condition, according to HUD Handbook 4000.1.
| Income type | What the lender asks for | Taxable? |
|---|---|---|
| SSDI | SSA award letter or benefit verification letter, plus proof you receive it (bank statement, SSA-1099 or tax return) | Part may be taxable, depending on your other income |
| SSI | SSA award letter and proof of current receipt | No |
| VA disability compensation | VA benefits letter or award letter; on a VA loan, your Certificate of Eligibility (COE) usually shows the amount | No |
| Private long-term disability | Policy or benefits statement showing the amount, how often it pays and any end date | Yes if your employer paid for the policy; no if you paid the full cost |
The tax column follows IRS Publications 915 and 525. It matters because nontaxable income can count for more, as shown below.
You can download your SSA benefit verification letter from your my Social Security account on SSA’s benefit letter page. You can also call 800-772-1213 and say “proof of income.”
For other income a lender may add, such as a spouse’s pay, see what lenders count as mortgage income.
If you have your benefit letter in hand, you can compare what lenders may offer before you apply.
The three-year rule and other continuance rules
“Continuance” means the income should keep coming after you close. When you buy a house on disability, each loan type handles this a little differently, and none needs your award letter to show an end date.
| Loan type | Continuance rule for disability income |
|---|---|
| FHA | Income that ends within three years of the application date can’t be used. When the award letter has no end date, the lender may treat the income as likely to continue. |
| VA | VA disability compensation needs no proof that it will continue. |
| Fannie Mae | SSDI on your own work record and private disability need no continuance proof unless the lender has reason to doubt them. Benefits drawn on another person’s record need three years. |
| Freddie Mac | Long-term disability (including SSDI) and SSI are expected to continue unless a benefit end date falls within three years or other evidence shows they will stop. |
| USDA | Social Security benefits with no end date, expected to last at least three years, may count. For private disability, the lender checks for an end date. |
A pending medical review is not a reason to reject the income. FHA, Fannie Mae and Freddie Mac all say a re-evaluation of eligibility does not show that benefits will stop. So if SSA has scheduled a continuing disability review, the lender should still count the income.
Private policies are the main exception, because some stop paying on a set date. If yours ends within three years, plan on qualifying without it.
How lenders add up disability income
Grossing up nontaxable income
Because you pay no tax on some benefits, lenders may “gross up” that income. They add a percentage to the nontaxable amount so it compares fairly with taxable pay. The percentage depends on the loan:
- FHA: up to the greater of 15% or your tax rate from the previous year (HUD 4000.1, Nontaxable Income (Grossing Up)). If you weren’t required to file a tax return, the lender may use 15%.
- Fannie Mae: 25%, or the actual tax amount if that is higher (Selling Guide B3-3.1-01).
- Freddie Mac: 25%, or the rate from current federal and state withholding tables (Guide Section 5305.1).
The gross-up applies only to the nontaxable part. With SSDI, Fannie Mae and Freddie Mac let a lender treat 15% of the benefit as nontaxable without extra proof. To gross up more than that, the lender needs documents such as your tax return.
A worked example
For example, say your SSI is $1,800 a month, all of it nontaxable. A 25% gross-up under Fannie Mae adds $450, so the lender can use $2,250. Under FHA’s 15%, the lender adds $270 and uses $2,070.
Debt-to-income ratio
Your debt-to-income ratio (DTI) is your monthly debt payments, including the new house payment, divided by your gross monthly income. Limits vary by loan; for example, USDA’s standard limits are 29% for housing and 41% for all debts. With a 680 credit score or higher, a waiver can permit 32% and 44%.
At a 41% total ratio, $1,800 of income supports $738 a month in total debts. The same income grossed up to $2,250 supports $922.50. Learn more about debt-to-income ratio limits.
Loan options when you buy a house on disability
None of these is a disability loan. They apply the same rules to every borrower, while the extras in the next section add help.
FHA loans
FHA loans allow 3.5% down with a credit score of 580 or higher. With a score between 500 and 579, the maximum loan-to-value ratio is 90%, so you need 10% down. Below 500, you are not eligible. In 2026, FHA also charges an upfront mortgage insurance premium of 1.75% of the base loan amount. The annual premium is 0.55% when the term is over 15 years, the base loan is $726,200 or less and you put down less than 5%. See FHA loan guidelines.
VA loans
In most cases, VA does not require a down payment, such as when the price is at or below the home’s VA-appraised value. Your disability compensation counts as income without proof of continuance, and your COE generally lists the amount. Veterans with a service-connected disability get other benefits as well; see VA loans for disabled veterans.
Conventional loans: HomeReady and Home Possible
Two conventional programs allow as little as 3% down on a one-unit home with a fixed rate. Both require your qualifying income to be at or below 80% of the area median income.
- HomeReady is Fannie Mae’s program (Selling Guide B5-6-01).
- Home Possible is Freddie Mac’s program (Guide Sections 4501.4 and 4501.7).
USDA loans
USDA guaranteed loans can cover up to the home’s appraised value, so no down payment is required. The home must be in an eligible rural area, and household income must be within USDA’s limit. Certain unreimbursed disability and medical expenses above 3% of household income can lower the income USDA compares with that limit (7 CFR 3555.152(c)). This deduction applies only to the eligibility test, and the lender still sizes the payment on your full repayment income.
Credit score reality
Fannie Mae removed the 620 minimum score for loans run through its Desktop Underwriter system on November 16, 2025. However, its manually underwritten loans still need 620 for a fixed rate, and many lenders keep higher minimums. See what credit score you need to buy a house.
Down payment help to buy a house on disability
Assistance programs and state agencies
State and local agencies often offer a grant or a low-cost second loan for the down payment. Read how these work in our guide to down payment assistance programs.
Some state housing finance agencies (HFAs) also run programs for buyers with disabilities. For example, as of October 2026 the Connecticut Housing Finance Authority’s Home of Your Own Program takes an extra 0.125% off its below-market rates when you or a household member has a documented disability. You must be a first-time buyer or not have owned a home in three years, and you must meet CHFA’s income and price limits. Other states set different rules, so find your own HFA in the NCSHA directory.
Section 8 homeownership vouchers
If you have a Housing Choice Voucher, your local public housing agency may let you use it toward a mortgage payment, but not every agency offers this. When a family member has a disability, the rules ease: the work requirement does not apply to a disabled family, and the first-time buyer rule can be waived as a reasonable accommodation (24 CFR 982.627). Fannie Mae and Freddie Mac also let lenders count the voucher payment as income.
SSI savings limits and ABLE accounts
In 2026, SSI has a resource limit of $2,000 for one person and $3,000 for a couple (20 CFR 416.1205). The home you live in does not count, but money you save for a down payment does. So talk to SSA or a benefits counselor before you save or move money.
An ABLE account can help, since SSA excludes up to $100,000 of its balance from SSI resources. Housing costs, including a mortgage, are qualified expenses, but a housing withdrawal you keep past the month you take it counts as a resource (SSA POMS SI 01130.740).
Once you know what help you may get, compare loan offers from lenders that work with these programs.
Steps to buy a house on disability
- Check your benefit letter. Download a current letter and look for an end date. If none appears, FHA lenders may treat the income as likely to continue.
- Check your credit. Pull your reports, dispute errors, then pay down card balances where you can.
- Talk to a housing counselor. A HUD-approved counselor can review your budget and point you to local help, and some programs require counseling. Call HUD at 800-569-4287 to find one.
- Get pre-approved with documents in hand. Bring your benefit letter, recent bank statements and your latest tax return or SSA-1099. Read more about mortgage pre-approval.
- Know what a lender may not ask. On an FHA loan, the lender may not ask about the nature of your disability. Under Regulation B, no lender may discount income because it comes from a public assistance program, such as Social Security or SSI (12 CFR 1002.6(b)). It can still consider the amount and how long the income will continue.
FAQ
Can you buy a house on disability?
Yes. Lenders can count SSDI, SSI, VA disability and private disability benefits when you document them and they are likely to continue. You still need to meet the loan’s credit, DTI and down payment rules.
Can you buy a house on SSI?
Lenders can use SSI as qualifying income, and the payment is not taxable, so it may be grossed up. The harder part is savings: SSI’s $2,000 resource limit counts money held for a down payment. So talk to SSA or a benefits counselor before you save for a home.
Does a lender count VA disability as income?
Yes. VA disability compensation is tax-free, and on a VA loan it needs no proof of continuance. Fannie Mae doesn’t require that proof either.
Do I need to prove my disability income will last?
It depends on the loan. FHA won’t use income that ends within three years, but an award letter with no end date is enough. Fannie Mae and Freddie Mac generally don’t require continuance proof for SSDI unless the lender has a reason to doubt it.
Are there grants for disabled people to buy a home?
Most help comes as down payment assistance from state and local agencies, often a grant or a low-cost second loan. Some programs, such as Connecticut’s, add better terms for buyers with disabilities. Each program sets its own income limits and rules, so check with your state HFA.
What credit score do I need?
FHA allows scores as low as 500 with 10% down, or 580 with 3.5% down. Fannie Mae’s automated system has no set minimum, but lenders often set their own.
Your next step
To buy a house on disability, start with your paperwork. A current benefit letter with no end date, plus proof you receive the money, answers most of a lender’s income questions.
Then check your credit and ask a HUD-approved counselor about local help. When you’re ready, apply with two or three lenders and compare their offers.
