Owning a home can provide financial stability and independence, but if you receive Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI), you might be wondering if buying a house is even possible without losing your benefits.
The good news? Yes, you can buy a house while on disability! However, SSI and SSDI have different rules when it comes to homeownership, income, and asset limits.
This guide will walk you through how to qualify for a mortgage, the best home-buying programs for people with disabilities, and how to avoid losing your benefits.
1. Can You Own a Home While on SSI or SSDI?
SSDI and Homeownership
✅ YES! There are no asset limits for SSDI, meaning you can own a home without affecting your benefits.
✅ Mortgage approval is based on credit and income, not SSDI status.
✅ SSDI recipients may qualify for first-time homebuyer and disability-friendly mortgage programs.
SSI and Homeownership
✅ YES, you can own a home on SSI, but with restrictions.
❌ SSI has a $2,000 asset limit ($3,000 for couples), but your primary residence is exempt.
✅ If you receive financial gifts or inheritance, you must structure them properly (e.g., through a Special Needs Trust) to avoid disqualification.
📌 Bottom Line: SSDI recipients have no restrictions, while SSI recipients can own a home as long as they live in it as their primary residence.
2. How to Qualify for a Mortgage on SSI or SSDI
If you want to buy a house while on disability, you’ll need to meet mortgage lender requirements:
✅ Stable income – SSDI counts as income for mortgage approval, but SSI may require additional sources of income.
✅ Good credit score – A score of 620 or higher improves your chances of getting approved.
✅ Low debt-to-income (DTI) ratio – Mortgage lenders prefer a DTI below 43%.
✅ Down payment assistance programs – Many states offer first-time homebuyer programs to help disabled individuals afford a home.
📌 Tip: If you receive SSI and need extra income for approval, you can apply with a co-signer or joint applicant.
3. Best Home Loans & Programs for Disabled Homebuyers
Here are some of the best mortgage programs available for SSI and SSDI recipients:
A. FHA Loans (Best for Low Down Payment)
Backed by the Federal Housing Administration.
Requires only 3.5% down payment with a 580+ credit score.
Easier to qualify with low income or credit issues.
B. USDA Loans (Best for Buying in Rural Areas)
Requires no down payment and has low interest rates.
Must purchase a home in an eligible rural area.
C. VA Home Loans (Best for Disabled Veterans)
No down payment and no mortgage insurance required.
VA also offers disability housing grants for home modifications.
D. Fannie Mae HomeReady Program (Best for Low-Income Buyers)
Requires only 3% down payment.
Allows non-traditional income sources like disability benefits.
📌 Tip: Check with local housing agencies for additional programs and grants that provide financial assistance to disabled homebuyers.
4. How to Avoid Losing SSI When Buying a House
If you receive SSI, buying a house is possible, but you must be mindful of income and asset limits.
✅ Keep your house as your primary residence – If you don’t live in it, it may count against the SSI asset limit.
✅ Use an ABLE account or Special Needs Trust – If receiving an inheritance or financial gift for a down payment, place it in an ABLE account to avoid exceeding the $2,000 asset limit.
✅ Report any financial changes to SSA – If you receive extra money for home-related costs, inform the Social Security Administration (SSA) to avoid benefit reductions.
📌 Key Tip: If a family member is gifting you money, don’t accept it directly—have it go into a trust or ABLE account to protect your SSI benefits.
5. Steps to Buy a Home While on SSI or SSDI
🏡 Step 1: Check your credit score & finances – Use a credit-building plan if needed.
🏡 Step 2: Determine your budget & mortgage options – Research FHA, USDA, VA, and state programs.
🏡 Step 3: Get pre-approved for a mortgage – Find a lender familiar with disability benefits as income.
🏡 Step 4: Find a home within your price range – Work with a real estate agent experienced in disability-friendly housing.
🏡 Step 5: Secure down payment assistance – Apply for first-time homebuyer programs.
🏡 Step 6: Close on your home and report changes to SSA if on SSI.
6. Manage Your Homeownership & Finances with Purple
Buying a house while on SSI or SSDI takes careful planning, but Purple helps you track income, savings, and benefit eligibility so you don’t risk losing financial support.
💜 Ready to buy a home while on disability? Get started with Purple today and take control of your home-buying journey!