Can You Buy a House While on SSI or SSDI? What You Need to Know

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!