Yes, you can own a home while on disability benefits. Your home is actually protected from SSI resource limits. Here's what you need to know.
In this article, we'll cover:
- Home ownership and benefit eligibility
- Buying a home on disability
- Mortgage options
- Protecting your benefits
1. Home Ownership and Benefit Eligibility
Your home is excluded:
- Primary residence doesn't count
- No value limit
- Land it sits on excluded
- For both SSI and SSDI
What's protected:
- House you live in
- Related land
- Property used as home
- Regardless of equity
What might count:
- Second properties
- Rental property income
- Investment property
- Vacation homes
SSDI vs SSI:
- SSDI: No asset limits at all
- SSI: Home excluded from $2,000
- Both programs allow ownership
- Different rules overall
Important: Your primary residence is one of the most significant asset protections for SSI recipients. Owning a home can actually help protect your benefits.
2. Buying a Home on Disability
Challenges:
- Limited income
- Affording down payment
- Qualifying for mortgage
- Maintaining property
Opportunities:
- Builds equity
- Stable housing
- Excluded from SSI limits
- Long-term investment
Saving for down payment:
- Use ABLE account
- Gifts from family
- Down payment assistance
- Some programs help
What lenders consider:
- Income stability
- Credit history
- Debt-to-income ratio
- Down payment amount
3. Mortgage Options
FHA loans:
- Low down payment (3.5%)
- Lower credit requirements
- Disability income counts
- Popular choice
USDA loans:
- No down payment
- Rural/suburban areas
- Income limits apply
- Good for lower incomes
VA loans:
- For veterans
- No down payment
- Good terms
- Disability benefits count
First-time buyer programs:
- State and local programs
- Down payment assistance
- Lower interest rates
- Check your area
What to avoid:
- Predatory lenders
- High-interest loans
- Unaffordable payments
- Rushing the process
4. Protecting Your Benefits
Keeping SSI while owning:
- Home is excluded
- Equity doesn't count
- No effect on eligibility
- Report if you move
If you sell:
- Proceeds must be reinvested
- Within 3 months
- In new home
- Or counts as resource
Rental income:
- If you rent part of home
- Income may count
- Report to SSA
- Could affect SSI
Property taxes and insurance:
- Budget for these
- Can use benefits to pay
- Required for mortgage
- Plan ahead
Practical Considerations
Affordability:
- Total housing cost
- Mortgage payment
- Insurance
- Taxes
- Maintenance
Budgeting:
- Don't overextend
- Leave room for repairs
- Emergency fund important
- Consider all costs
Accessibility:
- Current and future needs
- Modification possibilities
- Single floor options
- Location matters
Long-term planning:
- Will needs change?
- Can you age in place?
- Resale considerations
- Family support nearby?
How Purple Helps
Purple supports your homeownership journey:
- Track savings progress
- Budget for housing costs
- Monitor spending
- Stay under SSI limits
- Clear financial picture