How to Buy or Keep a House Without Losing Disability Benefits
Introduction: Can You Own a Home While on Disability Benefits?
If you receive Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI), you may be wondering:
🏡 Can I buy a house while on disability benefits?
🏡 Will owning a home affect my SSI or SSDI payments?
🏡 What happens if I inherit or already own a house?
The good news is:
✔ You CAN own a home while receiving SSI or SSDI.
✔ Owning a house does NOT affect SSDI benefits at all.
✔ For SSI recipients, your home is an “exempt resource” (it doesn’t count toward the $2,000 asset limit).
However, there are important rules you need to follow to make sure your benefits remain intact.
In this guide, we’ll cover:
✅ How homeownership affects SSI vs. SSDI
✅ Can you buy a house while on disability?
✅ What happens if you inherit or receive a home as a gift?
✅ Can you get a mortgage while on disability benefits?
✅ How to protect your benefits if you own a home
Let’s break it all down!
Does Owning a Home Affect SSI vs. SSDI?
✔ SSDI Recipients – No Impact
SSDI has no asset limits, so you can own a house, land, or other property without affecting your benefits.
You do NOT need to report homeownership to SSA if you only receive SSDI.
You can buy, sell, or inherit a home freely without losing SSDI.
💡 The only way SSDI would be affected is if you start earning income from rental property or house flipping.
⚠️ SSI Recipients – Your Primary Home is Exempt, But Extra Property is Not
If you receive SSI, you CAN own a home as long as it is your primary residence.
Your home does NOT count toward the $2,000 resource limit (it’s an exempt asset).
However, owning a second home, rental property, or land that you don’t live on COULD disqualify you from SSI.
💡 If you move out and rent your home to someone else, SSA may start counting it as a resource.
Can You Buy a House While on SSI or SSDI?
Yes! You can buy a home while on disability benefits—but there are some challenges, especially for SSI recipients.
Buying a House on SSDI
✔ You can buy a home with no restrictions.
✔ There are no SSDI income or asset limits.
✔ You can use SSDI backpay or savings for a down payment.
Buying a House on SSI
✔ You can buy a home, but your bank balance must stay below $2,000.
✔ If someone else gives you money for a down payment, it may count as income and reduce SSI benefits.
✔ If you inherit money to buy a house, you must put it in a Special Needs Trust or ABLE account to protect SSI.
💡 Best Strategy for SSI: Have a family member purchase the house and put it in a trust, or use an ABLE account for savings.
Can You Get a Mortgage While on Disability?
Yes! Receiving SSI or SSDI does not prevent you from getting a mortgage—but lenders may have stricter requirements.
How to Qualify for a Mortgage on Disability Benefits
✔ Prove Stable Income – Most lenders accept SSDI and SSI as qualifying income.
✔ Have a Decent Credit Score – A score of 620 or higher improves your chances.
✔ Show Low Debt-to-Income Ratio – Lenders prefer a ratio below 43%.
💡 If you struggle to qualify, consider these options:
✔ Apply for a FHA loan (easier credit & down payment requirements).
✔ Get a VA loan (if you're a veteran).
✔ Have a co-signer with good credit.
What Happens If You Inherit a Home While on SSI or SSDI?
If you inherit a house, here’s how it affects your benefits:
✔ SSDI recipients: Inheriting a home does NOT affect benefits.
⚠️ SSI recipients: The house must become your primary residence to stay exempt.
💡 If you already own a home and inherit another, you must sell or transfer the extra property to stay under SSI’s $2,000 asset limit.
Can You Sell Your Home While on SSI or SSDI?
✔ SSDI: You can sell your home and keep all the profits.
⚠️ SSI: If you sell your home and don’t reinvest the money quickly, SSA may count the cash as a resource and stop your benefits.
💡 If you sell your home on SSI, consider placing the money in a Special Needs Trust or spending it before the next SSA review.
How to Protect Your Benefits If You Own a Home
If you receive SSI, follow these tips to avoid losing your benefits while owning a home:
✔ Live in the house full-time – Your primary residence is always exempt.
✔ Avoid owning extra property – Selling or gifting it can prevent SSA issues.
✔ If you inherit property, move into it or transfer it to a trust.
✔ If you receive a large sum from selling your home, spend down the money quickly or transfer it to an ABLE account.
💡 For SSDI recipients, there are no restrictions—you can buy, sell, or inherit property freely.
How Purple Helps Manage Your Disability Benefits & Homeownership
💜 Track Your Disability Deposits – Know when your SSI & SSDI payments arrive.
💜 Monitor Your Bank Balance – Avoid exceeding the $2,000 SSI limit.
💜 Plan for Home Expenses – Track mortgage payments, taxes, and utility bills.
💜 Find Housing Assistance Programs – Learn about rent subsidies & mortgage help for disabled individuals.
💡 With Purple, you can manage your finances while keeping your SSI or SSDI benefits secure!
FAQs About Owning a Home on SSI or SSDI
Can I Own More Than One House on SSI?
No. Only your primary residence is exempt—a second home or rental property may disqualify you.
Can I Use My SSDI Backpay to Buy a House?
Yes! SSDI backpay has no restrictions and can be used for a down payment or mortgage.
What Happens If I Move Out of My Home on SSI?
If you move out and don’t sell the home, SSA may start counting it as a resource, putting you over the $2,000 limit.
Can I Rent Out a Room in My House on SSI?
Maybe. If you rent out part of your home, SSA may count the rental income, which could lower your SSI payment.
Conclusion: Yes, You Can Own a Home While on Disability—Here’s How to Keep Your Benefits
✅ SSDI recipients can own a home without restrictions.
✅ SSI recipients can own ONE home, but extra property could affect benefits.
✅ Buying a house on disability is possible, but SSI recipients must stay under the $2,000 limit.
✅ If you inherit or sell a home, you must handle the money carefully to keep SSI eligibility.
✅ Use Purple to track your disability benefits & housing expenses!
💜 Sign Up for Purple to Manage Your SSI & SSDI Benefits Easily!