What % of disabled people get approved by lenders to purchase HUD homes?

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I’m asking this because I found a tiny house down the street & it’s a HUD home. The payments would be less than my current rent & I’d have a home of my own again. The HUD website states that a person cannot be denied a loan due to having public assistance as their only income.

I was wondering if SSI/DI qualifies a person for an FHA first time home buyers loan.
I am permanently disabled.
I have tried in vain to reach a human on the HUD phone line.
Asking here in hopes someone knows the answer.

I would think the govt would be happy to get their $ returned to them each month when I pay
my mortgage to their lending institution instead of to someone else!

  1. Reply
    Teddy & Chiliswoman
    May 1, 2011 at 3:42 am

    I have no idea what the percentage is, but they definitely are approved. They even have special programs designed to help you with the downpayment and any modifications the house might need for you to move into it.

    Do remember though that it is not only house payments you must pay, it is also taxes, and perhaps more utilities than you do now. I can pay my mortgage and condo fee OK, but I struggle to pay taxes twice a year. BUT it is still comparable to renting.

  2. Reply
    May 1, 2011 at 4:10 am

    First off keep in mind when you say the payments on a house would be cheaper than rent, there are other factors you MUST consider. If your rent includes any utilities, that is a cost you must add to your house payment. Even if you are now responsible for all utilities, they would be higher with a house.

    If your state has property taxes, that is a potential additional cost, although in some states being on SSDI/SSI could offset it. You may be responsible for yard maintenance, snow removal (if in a cold climate). The cost of appliance (refrigerator, oven) plumbing, furnace, water heater, repair or replacement would likely be a new burden. Then there is also home owners insurance involved

    So you must take all of those, and any others, into consideration, as potentially costing nearly as much as your payment/current rent.

    Couple of things though. HUD does not make direct loans. When HUD says you cannot be denied a loan when public assistance is only income, that does not mean or include if your income is not at the required level, you cannot be denied. It simply means if your income meets the minimum required on a specific loan, it cannot be denied because that income is public assistance.

    As as far as I know, FHA lenders require around a 3.5% minimum down payment. So that would be $ 350 per $ 10,000. A $ 30,000 home would require a $ 1050 down, minimum.

    But, you should still call. Truth is, often government agencies do have programs that are hidden and few people are aware exist. So maybe there are other options available. It won’t cost anything other than time to check it out.

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