Mortgage programs for the disabled are limited
Mortgage lending can be a complex and overwhelming business. There are an inordinate number of programs, lenders and rates. Average consumers must do ample research prior to applying for a new mortgage or a refinance. For disabled Americans, the process is even trickier. Disabled consumers often are on fixed incomes, and those incomes--according to some mortgage lenders--cannot be used to calculate a borrower's ability to repay a loan. There are a few programs that may help, at least partially.
Home Choice
The Home Choice mortgage program is offered by Fannie Mae--one of the largest lenders in the United States. This program is specifically designed to help low- and fixed-income borrowers achieve home ownership and allows disability income to be included in the calculation of the borrower's ability to repay the mortgage. Specifically, the program mandates very low down payments on new homes (sometimes as little as $500). In addition, if qualified, borrowers need not pay the sometimes expensive closing costs on the loan that include the appraisal fee, title fee, recording fee and origination fee.
Section 8 Exceptions
The Housing and Urban Development Administration (HUD) offers housing assistance to the lowest-income population in America. One of these programs is Section 8 housing. Participants in Section 8 can either rent government-subsidized housing complexes or retain vouchers to use to help supplement other income when renting non-governmental housing. In some cases--especially in the case of disabled Americans--these vouchers can be acquired and used to make mortgage payments.
Direct Loans for Certain Disabled Veterans
The Department of Veterans Affairs offers certain programs for veterans of the U.S. Armed Services. One of these programs is the Direct Loan Program for Certain Disabled Veterans. Eligible veterans can receive a housing grant to retrofit or design specialized entryways, doorways and appliances for homes. In addition, the program allows for up to $33,000 in VA direct loans to supplement the housing grant. Disabled veterans must fill out a Certificate of Eligibility,detailing military service,prior to applying for this program.
