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Question By
ernestf01

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wanting to buy home on ssd whats my options
like to know my option on ssd getting a home. its not taxable income does that work in my favor. I,m 44 years old would I qualify for a 30 year fixed loan. im single no family members if I got good enough credit can I avoid co signer. im not required to file taxs because I make under 25k a year so will paper work from ss be enough.

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Can't discriminate

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SSD income is treated like any other tax free income. It is against the law for lenders to discriminate based on a disability. Tax free income can commonly be"grossed up" 25%. So a lender will increase your income by 25% when calculating your debt-to-income ratio. 

If you are not required to file taxes you do not have to have a tax return to get a mortgage loan. Your social security paperwork is all you would need to document your income. It is against the law for a lender to require documentation about your disability. For example a letter from your doctor on whether your disability is permanent or how long it will last. 

FHA may be a good choice if you do not have much to put down or have marginal credit. A conventional loan will be less expensive if you have 5% of more to put down. Check with your local governments such as city and county for special programs for persons with disabilities that may give grants for down payment assistance.

Best wishes and good luck on your house hunting.

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You might be far better off trying for a rental under Title 8 subsidized housing.  Your rent would be low or nothing at all and there are nice units to select.  I've done that.

Remember, when you own a home, you have to have insurance and pay taxes, and those can really bite!!  Been there, too.
 

If you insist on looking into buying a home, consider FHA.  SSD doesn't leave much for "contingency fyund" and that's something you always need with a house you buy.

Try this site's "home affordability" program for other insight. 

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Reply by
ernestf01

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ty. sorta looking for different options sextion 8 most of the times is tapped out of funds or ssi comes first which i draw to much for.

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Reply by
Addison170

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Helpful to 1 out of 2 people

Another option may be using this non-profit group instead of traditional mortgage; no money down, no closing costs, good interest rates and credit scores don't matter.  Visit www.naca.com for information about a free educational seminar in your area.

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