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Listen up, here's the deal. People with disabilities who own their own homes don't just have a place to live. It's about being free, having access, and making your money last over time. The numbers tell an important story: the Federal Reserve's 2024 Report on the Economic Well-Being of U.S. Households, which came out in May 2025, showed that adults with disabilities were much less likely to own their own homes than the general population.
The University of New Hampshire's Institute on Disability's 2025 Annual Disability Statistics Compendium says that in 2023, seven out of every 20 people with disabilities spent 30% or more of their income on housing costs. Five out of twenty people who didn't have disabilities had similar cost problems. That difference adds up quickly when you have to pay for things related to your disability on top of everything else.
The FHFA House Price Index showed that home prices kept going up through 2025. Between the third quarters of 2024 and 2025, they went up by an average of 3.26%. This growth raised the conforming loan limits for 2026, but it also means that people with disabilities have to deal with even more problems when their budgets are already tight.
The good news is Federal programs, grants, and special loan options have changed over time to help fill this gap. In 2026, there are many ways to buy a home, whether you get disability benefits, need to make your home more accessible, or just want more flexible qualification requirements.
Before exploring specific loan programs, you should know how different agencies define disability for program eligibility. The classification determines which programs you can access and what benefits you might qualify for.
The Social Security Administration sets the standard for disability benefits through SSDI for workers who've paid into the system, and SSI for individuals with limited income and resources. To qualify, applicants must demonstrate a medical condition that prevents substantial gainful activity and is expected to last at least 12 months or result in death.
For housing programs specifically, the Department of Housing and Urban Development applies Fair Housing Act standards. Under these guidelines, a person has a disability if they have a physical or mental impairment that substantially limits one or more major life activities. This covers mobility impairments, vision and hearing impairments, cognitive disabilities, mental health conditions, chronic health conditions, and respiratory conditions requiring supplemental oxygen.
Yes, and this is probably the most important thing to know right away. If you get Social Security Disability Insurance or Supplemental Security Income, you can use that money to apply for a mortgage.
When deciding how much you can borrow, lenders see disability benefits as steady, regular income. The most important thing is paperwork. You'll need to send in award letters from the Social Security Administration that show how much money you'll get each month, as well as proof that these benefits will last for at least three years after the loan closes.
This is where it gets fun: In most cases, SSDI benefits are not taxed as income. This means that your real buying power may be higher than what the numbers show. When lenders figure out your debt-to-income ratio, they look at your gross income. But if your disability benefits aren't taxed, that whole amount works in your favor because tax withholdings don't lower your qualified income.
People who get SSI have to think about things a little differently. Because SSI is based on need and has strict asset limits, buying a home requires careful planning. The good news is that your main home doesn't count toward SSI's asset limits. You can keep getting benefits even if you own your own home.
In 2026, it became much easier to get conventional loans. On November 25, 2025, the FHFA announced the conforming loan limits for 2026. For single-unit properties, the base limit went up to $832,750. This is $26,250 more than the $806,500 limit in 2025.
The ceiling went up to $1,249,125 for areas with high costs. Alaska, Hawaii, Guam, and the U.S. Virgin Islands are some of the special statutory areas with even higher limits.
But here's the most important change: starting November 16, 2025, Fannie Mae and Freddie Mac will no longer require a minimum credit score to qualify for a conventional loan. Instead of a strict 620 credit score floor, lenders now look at your whole financial picture to figure out how risky it is to lend you money.
This doesn't mean that credit isn't important. It means that borrowers with thin credit files or problems in the past have a better chance of qualifying if other factors show that they are creditworthy. This is a big change for people with disabilities who might have medical debt, gaps in their work history, or few chances to build credit.
Most of the time, your debt-to-income ratio can't be higher than 50%. But some programs let you have a higher ratio if you have good credit or a bigger down payment. Qualified borrowers can put down as little as 3% on a home through either Fannie Mae's HomeReady or Freddie Mac's Home Possible programs.
HomeReady lets you include income from people who live in your house but aren't borrowing money. If you live with family or roommates who help pay for housing but won't be on the loan, their income can help you qualify. Home Possible offers similar flexibility and requires home buyer education, which many borrowers find helpful.
For decades, FHA loans have been the main way for people who don't fit into traditional molds to get money. FHA's flexible requirements often make it the easiest way for people with disabilities to buy a home.
The FHA limits also went up for 2026 after the conforming loan limit went up. In most places, the basic FHA loan limit for single-family homes was $541,288. In counties with high costs, FHA limits are the same as conventional limits: $1,249,125 for single-unit homes.
You can get a loan with a credit score as low as 580 and a down payment of only 3.5%. If your credit score is between 500 and 579, you can also qualify with 10% down.
FHA underwriting gives special attention to medical debt, which hurts people with disabilities more than other types of debt. Medical collections do show up on credit reports, but during manual underwriting, they are often treated more leniently than other types of debt.
FHA loans also let you have a higher debt-to-income ratio than other types of loans. In many cases, this can be up to 50%, and in some cases, even higher if there are other factors that make it possible. This flexibility is important when disability benefits are a steady source of income but might not be big enough to meet stricter DTI limits.
FHA requires both an upfront mortgage insurance payment of 1.75% of the loan amount and monthly mortgage insurance payments that continue. Most FHA loans with down payments of less than 10% require borrowers to pay mortgage insurance for the entire loan term. This is a real cost, but for borrowers who can't make big down payments, FHA's trade-off often makes sense.
In addition to being flexible with qualifications, FHA loans have rules that make it easier to make homes more accessible. With the FHA 203(k) program, you can buy a house and pay for the repairs with one loan. Standard 203(k) loans can be used to pay for major repairs up to the lower of 110% of the home's value after repairs or the FHA loan limit in your area.
Veterans with service-connected disabilities have access to some of the most generous housing benefits available anywhere. VA programs combine zero-down-payment purchase loans with substantial grants for accessibility modifications.
The basic VA loan program offers qualified veterans the ability to buy homes with no down payment up to the conforming loan limit of $832,750 in 2026 for most areas. But veterans with service-connected disabilities receive additional benefits that dramatically reduce costs.
Veterans rated at 10% disabled or higher are exempt from the VA funding fee. This represents substantial savings. The funding fee ranges from 1.4% to 3.6% of the loan amount. On a $300,000 loan, that exemption saves $4,200 to $10,800.
VA loans also require no private mortgage insurance regardless of down payment size. Combined with the funding fee exemption, disabled veterans often pay less in closing costs and monthly payments than any other loan type would allow.
The SAH grant program helps veterans with certain severe service-connected disabilities buy, build, or modify a home to accommodate their needs. For fiscal year 2026, which began October 1, 2025, the maximum SAH grant increased to $126,526.
Eligibility requires meeting one of these criteria: loss or loss of use of both lower extremities requiring mobility devices, blindness in both eyes with visual acuity of 20/200 or less, loss or loss of use of one lower extremity together with residuals requiring wheelchair use, or severe burn injuries as specified by VA.
The SAH grant can be used up to six times over your lifetime, though total disbursements cannot exceed the current maximum. Eligible modifications include wheelchair ramps, widened doorways and hallways, accessible bathrooms with roll-in showers, modified kitchens with lowered counters, and accessible bathroom fixtures with grab bars.
The SHA grant serves veterans whose disabilities, while significant, don't meet SAH criteria. The maximum SHA grant for fiscal year 2026 is $25,350, available to veterans with service-connected disabilities including blindness in both eyes with visual acuity of 5/200 or less, loss or loss of use of both hands, certain respiratory conditions requiring supplemental oxygen, or severe burn injuries.
TRA grants help veterans who qualify for SAH or SHA but are temporarily living in a family member's home. For fiscal year 2026, TRA grants provide up to $50,961 for SAH-eligible veterans and up to $9,099 for SHA-eligible veterans.
TRA funds don't count against your six lifetime uses of SAH or SHA grants. You can use TRA money to adapt a family member's home, then later use SAH or SHA for your permanent residence without penalty.
Many veterans combine VA purchase loans with housing grants for maximum benefit. Use the VA loan to buy a home with zero down payment, no mortgage insurance, and no funding fee. Then apply grant funds toward necessary modifications.
USDA loans are for people who want to buy a home in a rural or suburban area, including people with disabilities who live in or plan to move to an area that qualifies. USDA programs don't specifically help people with disabilities, but they do offer options with no down payment that make it easier to get started.
The Section 502 Direct Loan program is for people with very low or low incomes who can't get credit at a reasonable rate anywhere else. The program's low-income limit for the area is usually between 50% and 80% of the area's median income, depending on the size of the household. These loans come with payment help that can lower the effective interest rate to as low as 1% for people who qualify. This subsidy can greatly lower your monthly payments if you get disability benefits and your income is below the program's limits.
The Section 504 program gives loans and grants to homeowners with very low incomes so they can fix, upgrade, or modernize their homes. You can get a loan for up to $40,000 at 1% interest for up to 20 years. People who own homes and are 62 or older and can't pay back a loan may be able to get grants of up to $10,000. You can get both a loan and a grant at the same time, but the most you can get is $50,000.
The Housing Choice Voucher Homeownership program, administered by local public housing agencies through HUD funding, allows eligible voucher holders to use their monthly rental assistance toward homeownership costs instead.
If you currently receive a housing choice voucher and want to buy a home, you might qualify to convert that rental assistance into help with mortgage payments. The PHA continues providing assistance, but instead of going to a landlord, the funds help cover your mortgage, property taxes, and homeowners insurance.
This program specifically exempts people with disabilities from certain requirements that apply to other participants. While non-disabled voucher holders must meet minimum income and employment requirements, people with disabilities can qualify regardless of employment status or duration.
You must be a first-time home buyer with limited exceptions and complete a homeownership counseling program approved by your PHA. The home must pass HUD housing quality standards and qualify for financing under FHA or conventional loan programs.
Habitat for Humanity works differently than regular mortgage programs, but it helps people who wouldn't be able to buy a home through regular financing become homeowners. The nonprofit builds and fixes up homes, then sells them to families who can afford them with no profit and low-interest loans.
Habitat looks at three main things: need, ability to pay, and willingness to work together. Need means that your current housing situation is not good enough. Ability to pay means that your income is high enough to cover the Habitat mortgage, which is usually about 30% of your household income. If you're willing to partner, you'll have to do sweat equity hours and learn about being a homeowner.
The sweat equity requirement can be changed for people with disabilities. If you can't work at the construction site because of your disability, you can still get hours by doing other volunteer work, like working in an office or on a committee. Family members can also put in hours for you.
Each local Habitat branch decides how much money families can make, but in most cases, they need to make between 30% and 60% of the area's median income. You can build or change Habitat homes from the start to make them easier to get into.
Homes For Our Troops builds specially adapted, mortgage-free homes for severely injured post-9/11 veterans. If you're a veteran with qualifying service-connected disabilities, this program removes virtually all financial barriers to accessible homeownership.
To qualify, you must be a veteran who served on or after September 11, 2001, have a letter of eligibility for the VA's SAH grant, be retired or in the process of medically retiring from active duty, pass a background check, commit to making the home your primary residence, and have resources to maintain the home.
The organization builds a fully accessible, specially adapted home based on your specific disability needs. These custom-designed homes include features like automatic doors, roll-in showers with custom controls, accessible kitchens with height-adjustable cabinets and countertops, wide doorways and hallways throughout, specialized lighting systems, and backup power systems for critical medical equipment.
The average Homes For Our Troops home costs several hundred thousand dollars to build and fully adapt, but you receive it mortgage-free. The organization also maintains a three-year relationship after you move in, providing additional adaptations if your needs change.
Beyond federal programs, most states and many cities operate housing assistance programs that can significantly impact affordability for people with disabilities. These programs often fly under the radar, but they're worth investigating since they can stack with federal benefits.
Forty-seven states plus Washington, D.C., offer some form of down payment assistance. These programs typically provide either forgivable loans or second mortgages with low interest rates or deferred payments. Many states prioritize applicants with disabilities or offer special provisions.
Most states offer property tax exemptions or reductions for homeowners with disabilities. These programs vary widely but commonly reduce your assessed home value by $5,000 to $50,000, directly lowering your annual property tax bill.
Many states and cities operate programs specifically funding home accessibility modifications. These grants typically range from $5,000 to $20,000 and can be used for ramps, bathroom modifications, doorway widening, and other adaptations.
It's one thing to know about the programs that are out there. To really qualify for a mortgage, you need to make real financial plans.
First, get free credit reports from all three bureaus at AnnualCreditReport.com. Check them carefully for mistakes because studies show that about 20% of credit reports have mistakes that could lower scores. Use the bureau's online dispute process to contest any mistakes.
When you rebuild your credit, keep in mind that your payment history is the most important part of your FICO score (35%). Even if your credit has been bad in the past, making all of your payments on time for six to twelve months can greatly improve your scores.
To find your DTI, lenders divide your total monthly debt payments by your gross monthly income. Most loan programs will approve you more easily if this ratio is at or below 43%. FHA, on the other hand, will approve you up to 50% if you have other factors that make up for it.
Make sure you keep good records of your disability benefits because they count as income. You can ask for a letter to confirm your SSA benefits online at ssa.gov or by calling 1-800-772-1213.
Different programs have different down payment requirements. VA and USDA require no down payment, FHA requires 3.5%, and HomeReady and Home Possible require 3%. Even if you don't have to put down any money, you'll still have to pay closing costs, which are usually between 2% and 5% of the purchase price.
Preapproval means that a lender is willing to lend you a certain amount of money based on verified financial information. If you want to get preapproved, you'll need to send in a letter from the SSA confirming your benefits or other proof of income, recent bank statements, a government-issued photo ID, permission to pull your credit reports, and information about the home you want to buy.
A knowledgeable agent who knows how to help people with disabilities can be very helpful. They will help you find homes that are easy to get to, negotiate with sellers to make changes that make them easier to get to, understand local building codes for accessibility, and put you in touch with contractors who know how to design homes that are easy to get to.
When you get a standard home inspection, they look at the structure, the mechanical systems, and safety issues. If you have needs related to a disability, you might want to hire an occupational therapist or accessibility consultant to check if the home meets your needs or can be changed to do so.
Federal law provides robust protections against housing discrimination based on disability. The Fair Housing Act prohibits discrimination in housing based on disability. Under FHA, it's illegal to refuse to rent or sell housing to someone because of disability, refuse to make reasonable accommodations, refuse to permit reasonable modifications, make housing unavailable because of disability, or advertise suggesting discrimination based on disability.
The ADA's Title II applies to state and local government housing programs, ensuring equal access to public housing, housing vouchers, and housing services. Title III covers places of public accommodation, which includes housing sales and rental offices.
You have the right to request reasonable accommodations and reasonable modifications. An accommodation is a change in rules, policies, practices, or services. A modification is a structural change to the physical premises.
If you're buying in a community governed by a homeowners association, understand that your rights under the Fair Housing Act and ADA supersede HOA aesthetic restrictions when reasonable modifications are necessary due to disability.
Many people don't know that owning a home in 2026 is more possible for people with disabilities than they think. This is because of special loan programs, grants, legal protections, and advocacy groups. The most important thing is to find the right resources for your situation.
If you're a veteran with disabilities that are related to your service, look into VA loans and housing grants first. You'll get the best benefits anywhere. There is no other program that offers a zero down payment, no funding fee for disabled veterans, and grants up to $126,526 for home adaptations.
FHA loans are the easiest way for non-veterans to buy a home with a low down payment, flexible credit requirements, and the ability to pay for accessibility improvements through the 203(k) program. Changes to credit scores that went into effect in late 2025 make conventional loans easier to get, especially through the HomeReady and Home Possible programs.
USDA's zero-down-payment loans and repair grants are great options if you live in or can move to an eligible rural area. No matter where you live, state and local programs can help you with your down payment and make your home more accessible.
Your first steps are to check your credit and start fixing any problems right away, ask for your SSA benefit verification letter to prove your disability income, look into state and local programs in your area through your state housing finance agency, get preapproved through AmeriSave or your chosen lender to find out how much you can afford to buy, and get in touch with a real estate agent who knows a lot about accessible housing.
Keep in mind that disability has a big effect on homeownership rates, but it doesn't stop people from owning homes. You can get through the process successfully and build equity while making your home more accessible to meet your needs if you have the right programs and plan ahead. Getting preapproved by a qualified lender helps you know how much you can afford to buy and shows that you are a serious buyer. Today, look into your loan options to take the first step toward owning a home.
Yes, but you need to plan carefully. You can own a home and still get SSI benefits because your main home doesn't count toward SSI's asset limits. Getting a mortgage is hard when SSI only pays a small amount of money. If you already get Section 8 help, look for programs that don't require a lot of money and don't require a down payment, like USDA in eligible areas or the Housing Choice Voucher Homeownership program.
No, you don't have to tell your mortgage lender about your disability. The Fair Housing Act and the Equal Credit Opportunity Act protect people with disabilities. Lenders can't ask about disability status or treat people differently because of it. You can, however, choose to say if you are using disability benefits as qualifying income or if you are applying for VA disability grants.
Most disability benefits give you a set amount of money each month that doesn't change. This is what lenders like. If you get fixed disability benefits and work part-time, lenders usually average your variable income over 12 or 24 months.
Yes, in a number of ways. The FHA 203(k) program makes it clear that you can get a single loan to cover both the purchase price and the cost of renovations. The HomeStyle Renovation loan works like a regular loan in many ways. VA loans also let you include the cost of changes in the loan amount.
Recent credit scoring models are more lenient with medical collections than with other types of collections. FICO 9 and VantageScore 3.0 don't count paid medical collections at all and give unpaid medical collections less weight. FHA tells underwriters to look at the circumstances surrounding medical debt in particular.
If you already get disability benefits as your qualifying income, getting worse and being unable to work won't affect your mortgage as long as the amount of your benefits stays the same. As long as your medical condition still meets the requirements for disability, you will usually keep getting SSDI and SSI benefits.
Some programs don't require first-time home buyers to be disabled because they know that people with disabilities may need to sell their homes to buy a more accessible one. There are no restrictions on first-time buyers with VA loans, FHA loans allow repeat buyers, and some state down payment assistance programs make exceptions for moves related to disability.
You already have disability protection if you get SSDI or SSI. As long as you meet the medical eligibility requirements, you will continue to get your benefits. It's harder to get and more expensive to get private disability insurance if you're working and haven't become disabled yet but have pre-existing conditions or are at a higher risk.
The best accessibility evaluations come from occupational therapists who have worked with people in their homes before. Call your local independent living center. These nonprofit groups help people with disabilities and often keep lists of accessibility consultants and OTs who can help. Aota.org, the website of the American Occupational Therapy Association, has a tool called "Find an Occupational Therapist."
Yes, in a number of ways. Family members can give you money for your down payment and closing costs. You can still qualify for a loan under the HomeReady and Home Possible programs even if the family members who don't borrow money don't go on the loan. Family members can co-sign your mortgage, but they will also be responsible for making the payments.
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