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- Conventional, FHA, USDA, and VA mortgages all have low or no down payment options, making them affordable for homebuyers with disabilities.
- Renovation mortgages enable borrowers to make updates to their home to increase accessibility.
- There are a variety of grants and other programs that can help with repairs, adaptations, or covering a down payment and closing costs.
Buying a home as a disabled individual can be challenging. Not only is finding an appropriate, accessible property difficult, but it may also be hard to qualify for a loan — particularly if you're on limited government disability income.
Fortunately, there are still options, and some types of mortgage loans are better suited to the needs of disabled persons than others. There is also aid available that can help you become a homeowner if you have a disability.
Here's a look at the various home loans and grants for people with disabilities and mortgage options for low-income buyers.
Understanding the needs of disabled homebuyers
Buying a home as a disabled person is certainly possible, but it also comes with some unique challenges that most homebuyers don't face.
For example, when you go through the mortgage approval process, you'll need to show proof of income. Lenders will use all the eligible income you earn to determine how much house you can afford.
If you receive disability income, either from the Social Security Administration (SSA) or from other sources, you can use disability income to buy a house. But this income is limited, and it also bars you from saving too much (as having too many assets disqualifies you from many government benefit programs). This can make it hard to save for a down payment and cover closing costs.
Finding an accessible home is also a hurdle many disabled homebuyers must deal with. If they can't find an appropriate property, they may need to make renovations to the home before they can move in — and find the cash to cover these updates as well.
Mortgage options for disabled homebuyers
There are many mortgage options to choose from. Which one is right for you depends on what you qualify for and what suits your needs.
1. FHA loans
FHA loans are mortgages backed by the Federal Housing Administration. They're a good option for borrowers with less-than-ideal credit.
You can get an FHA loan with a down payment of just 3.5% and a credit score of 580. If you have a larger down payment, you may be able to qualify with an even lower score.
The FHA also insures a renovation mortgage product, called a 203(k) rehabilitation loan
2. VA loans
VA loans are backed by the Department of Veterans Affairs. They're only available to veterans and service members who meet minimum service requirements. Some surviving spouses may also be eligible. If you have a disability, you may qualify with as little as a single day of service.
You can use a VA loan to buy a home with no down payment, and they typically come with lower rates than conventional mortgages.
In addition to meeting service requirements, you'll need to meet your lender's credit requirements. This means you'll likely need a credit score of at least 620, though some VA mortgage lenders have lower or higher requirements.
For veterans who have disabilities, the VA offers additional benefits along with the standard VA loan program. Those with a service-connected disability don't have to pay the VA funding fee, and if you receive VA disability compensation, you can use that to qualify.
3. USDA loans
USDA loans, which are guaranteed by the U.S. Department of Agriculture, can be a really great deal for low-income folks in eligible areas.
You can use a USDA mortgage to get into a home without a down payment. To qualify, you'll need to meet income limits and be in an eligible rural or suburban area. Lenders typically look for a credit score of at least 640.
If you're very low-income, you may also want to look into the USDA's direct loan program. With a direct loan, the USDA is the lender, rather than guaranteeing a loan made by a private lender.
USDA direct loans are available to those who don't have "decent, safe, and sanitary housing" and are unable to obtain a loan through other sources.
4. Conventional loans
Conventional loans are mortgages that aren't backed by a government agency.
If a conventional mortgage meets Federal Housing Finance Agency (FHFA) loan limits and adheres to Fannie Mae and Freddie Mac guidelines, it's considered a conforming loan.
These mortgages are very popular because they allow lower down payments than many others. You'll need to put at least 3% down and have a minimum credit score of 620 to get a conventional loan.
For renovation mortgages, look for lenders that offer Fannie Mae HomeStyle Renovation or Freddie Mac CHOICERenovation mortgages. Some lenders may also offer their own renovation mortgage products.
Accessibility features
While there aren't mortgages that are outright designed for added accessibility features, you can look to renovation loans, which can cover the costs of updating a property as your condition requires. There are also loans that allow you to buy a home and roll the costs of a renovation in with it. (FHA 203k loans are one such example).
Grants and financial assistance
If you need additional assistance to get into a home, several types of programs can help.
Federal grants
There are several federal grant programs that can help you buy or renovate a home. The Department of Housing and Urban Development's HOME Investment Partnerships Program, for example, is one option. This offers assistance for low-income buyers and can be used for building a home or renovating one.
The USDA Section 504 Home Repair program also offers grants that very low-income older homeowners can use to fix problems related to the health and safety of the home. This program offers loans up to $40,000 and grants up to $10,000.
Finally, the VA also has a few grants available for service members or veterans who have a service-connected disability. They can be used to buy, build, or change your permanent home:
- Specially Adapted Housing grant: Up to $117,014
- Special Home Adaptation grant: Up to $40,983
If you're temporarily living in a family member's home that you need to make adaptations to, you may be eligible for a Temporary Residence Adaptation grant. You could get up to $7,318 or $40,983, depending on the type of service-connected disability you have.
State and local programs
Your local or state housing authority may also be available to provide down payment assistance and other help. Many states have specific help for disabled individuals. Texas, for instance, has the Amy Young Barrier Removal Program, which offers low-income disabled buyers grants of up to $22,500 to make properties more accessible.
Your local Center for Independent Living may also have resources to help you.
Check with your state housing finance agency to find out if it offers any affordable mortgage programs that you qualify for. They may also offer housing rehabilitation programs that can help improve your property at a lower cost.
If you're a Section 8 housing choice voucher program recipient, you might be able to use your voucher to become a homeowner.
Nonprofit organizations
Nonprofit organizations may also have programs to help you find and afford an accessible home. Organizations like Habitat for Humanity and Rebuilding Together may be able to renovate or repair your home. For veterans, Homes for Our Troops builds specially adapted houses for veterans injured after September 11, 2001.
Eligibility criteria
The exact requirements you'll need to meet depend on what loan programs and grants you use, but you can generally expect to meet these:
General requirements
You'll need a certain credit score, down payment, and debt-to-income ratio to qualify for a mortgage loan, and these vary widely between programs and lenders. FHA loans allow for the lowest credit scores and are most lenient with DTIs, if you're worried about qualifying.
Grants usually base your qualification on how much income you make compared to others in your area.
Income and asset limits
You can use disability income to qualify for your mortgage. To do this, you'll need to show that you're eligible for disability benefits, how much you receive, and the frequency of the payments.
Potential sources include:
- Social Security Disability Insurance (SSDI)
- Supplemental Security Income (SSI)
- Private disability insurance
- Worker's compensation
- VA disability compensation
Keep in mind that many grant programs are for low- and moderate-income buyers only. Usually, income limits are based on the area's median income where you're buying a home. (You may need to make 50% or less than the AMI, for example).
Disability status verification
For disability-specific grants, you will need to verify your disabled status before you can qualify for funding. This usually means providing proof of your disability benefits — and that those benefits will continue for at least three years after the home purchase.
Property requirements
Finally, the property you buy may need to meet some requirements, too. It may need to meet certain safety and health requirements, and it may need to be appraised as well. Personally, you may want the home to have certain accessibility features, too.
Application process
If you're interested in buying a home, here's what the process generally looks like:
Finding and applying for mortgages
If you're getting a mortgage, you'll need to shop around for mortgage lenders first, particularly if you're looking for a specific loan program. For help, consider talking to a mortgage broker. They can help you look at several lenders and loan programs at once.
You'll then need to fill out an application and submit documentation showing your income and assets. You will also need to provide proof of your disability income if you're using that to qualify.
Your lender will then order a home appraisal. Once you've gone through the underwriting process and are fully approved you'll pay your down payment and closing costs and close on your loan.
Applying for grants
If grants are on your radar, start by consulting your state and local housing agencies. You can also look to local nonprofit organizations, or speak to a loan officer or housing counselor, as they may be able to recommend programs that are available in your area. Your real estate agent may be able to help as well.
You'll need to fill out the application and prove you meet any income or disability requirements that it comes with. There may be other requirements, too (for example, with adapted housing grants, you must be a veteran or military member).
Documentation needed
The documents needed to get a mortgage depends on the loan or grant program you're using and the lender or organization offering it. You might need things like:
- Tax returns
- Pay stubs
- W-2s
- Bank account and asset statements
- Proof of disability income
Your loan officer or mortgage broker can help walk you through the requirements of any loan or grant program you choose to use.
Resources and support
Need more help on your homebuying journey? Explore these resources.
- Government agencies: HUD, USDA, and VA are good places to start, as each offers loan programs you might find useful. The Social Security Administration and Americans with Disability Act website may also be helpful.
- Nonprofit organizations: You can also look to nonprofit groups, like Habitat for Humanity, United Way, Rebuilding Together, Housing Assistance Council, Easterseals, American Council of the Blind, The Arc, and American Association of People with Disabilities.
- Local housing authorities: Most states have housing agencies that have grants and loan options that can help. See this list to find yours.
Be sure to check with your city or county, too, as there are often local programs you can take advantage of.
Disability home loans and grants FAQs
While there are some homeownership programs available nationwide specifically for people with disabilities (such as grants offered by the VA), you may find programs that are more broadly available, such as government-backed mortgages or lender-provided down payment assistance, can also help you become a homeowner.
Available grants include federal, state, local, and non-profit grants designed to assist with homeownership and accessibility modifications.
Yes, if you receive some sort of disability income or benefits, such as SSI, SSDI, or private disability insurance, you can use that income to help you qualify for a mortgage.
If you have a disability and need assistance buying a home, a good first step is to reach out to your city or state's housing authority to see if programs specifically for individuals with a disability are available in your area.
