Buying a house on disability benefit or SSI requires more effort and maneuvering than most potential homeowners are used to. It requires carefully funneling the stipends from each monthly payment into a home fund while also struggling to keep the benefits the government payout every month.
The difference between Disability benefit, SSI, and SSDI?
The concept behind Disability benefit, SSI, and SSDI are more or less the same. They all form of monetary supports paid out by the government to disabled individuals with limited income and resources. SSI is paid out to adults 65 years old or older. SSDI is paid to adults 65 and lower. However, it requires work credit to qualify for the benefit.
Both SSDI and SSI are recorded as valid sources of income and could be potentially lobbied, with the appropriate capital, of course, to a down payment. The only problem with benefit or support payment plans like these is that they can be discontinued when or if the recipient no longer qualifies for the benefit.
Can you use SSI to buy a home?
As of 2017, the standard stipend paid out by SSI to a disabled adult is $735, and $1103 is paid to couples. This means that theoretically, it is possible to save enough money for a down payment.
The problem with saving and purchasing a home on SSI
Saving up the money without losing the benefits. As with most benefits paid out in America, there are certain requirements each applicant must fulfill before they are valid for application. In most cases, these requirements impose certain restrictions on the beneficiaries. This restrictions that make it nearly impossible to gather the funds they need to pay a down payment.
One of such restriction is the asset limitation. Beneficiaries are not allowed to have more than $2000 in assets. This means you will have to find crafty ways to save your money over time. On the Brightside, you can own property as long as you live in it. Your home doesn’t fall under this restriction.
Applying for loans and mortgages
Loan and mortgages will be naturally difficult to apply for and secure. You will need a stable income source- the benefit check- in conjunction with a decent credit score to process most loans.
If one of these two things is below par, it’s still possible to obtain a loan. A few financial bodies and money lenders are ready to approve loans for applicants with less than ideal credit scores. However, you will have to pass their screening process, as with all reputable financial institutions.
Can you pay off your home with the benefit check you get from SSI or SSDI?
Yes, you can. After purchasing your home, you can pay off your mortgage with the money you get from benefit checks every month. You are free to spend each month’s stipend on how you see fit.
Bottomline
It will certainly be challenging, but it is entirely possible to save enough money to purchase a home and finance it fully using SSI or SSDI benefit checks. We advise consulting with a financial adviser to understand the limitation of both support systems better before buying a house on disability benefit.
