For many Americans living with disabilities, buying a home can seem like a pipe dream. When your capacity to work and generate income is limited, saving enough for a down payment, monthly mortgage fees, insurance costs, and more can be difficult, to say the least.
Luckily, there are numerous programs and grants for homebuyers with disabilities, limited resources, and low incomes. Moreover, most states provide mortgage assistance for those with disabilities.
The only roadblock for many disabled homebuyers is finding these programs. Mortgage assistance on a federal, state, and local level tends to fly under the radar. This guide will lay the foundation for your home-buying journey as someone with a disability.
HUD Homeownership Vouchers
The Department of Housing and Urban Development offers homeownership assistance for those who receive Section 8 rental assistance.
If you're admitted to the Housing Choice Voucher homeownership program, your Public Housing Agency can help you buy a home and provide assistance with monthly housing expenses. Keep in mind that not every PHA participates in the Housing Choice Voucher program.
Although this program has income and employment requirements, the employment requirement doesn't apply to disabled families. HUD determines your income limit based on a percentage of the median family income in your neighborhood and fair market rents.
The HUD.gov income portal can provide you with more information about income limits in your area.
USDA Home Loans
While you might associate The United States Department of Agriculture with farming, the USDA offers two home loan programs that help low-income and disabled Americans who live in rural communities become homeowners. They are the Single-Family Housing Direct Home Loan and the USDA-Guaranteed Home Loan.
The Single-Family Housing Direct Home Loan lets you obtain the financing you need to buy a home directly from the government.
There is no down payment requirement, and interest rates on these loans are much lower than traditional loans. In some cases, rates are as low as 1%. Unlike conventional mortgages, the repayment period ranges from 33 to 38 years.
The USDA-Guaranteed Home Loan is for people with low to moderate incomes who want to own a home in a rural community.
Unlike the Direct Program, this home loan comes directly from the lender. To help you qualify for financing, the USDA will insure 90% of the loan amount to lenders in case you default on your mortgage.
To qualify for a Guaranteed Home Loan, you need to meet the income requirements for your state and show a willingness to repay your debts on time. The home must also be your primary residence.
Habitat for Humanity
This non-profit organization is well known for helping low-income and disabled Americans obtain the dream of homeownership.
Habitat for Humanity has a committee that selects families based on their level of need, their willingness to partner with the organization to help build a home, and their ability to repay an affordable mortgage.
To apply for a home, you must contact a local Habitat for Humanity branch.
Housing Grants for Disabled Veterans
The Department of Veteran's Affairs provides housing grants to veterans with service-connected disabilities.
The Special Housing Adaptation Grant and the Specially Adapted Housing Grant help wounded veterans buy a home, remodel an existing home, or build a new home.
The Specially Adapted Housing Grant lets veterans with service-connected disabilities build a specially designed home or remodel an existing home to ensure the living space is barrier-free. The maximum allowable grant is $85,645 for the fiscal year 2019.
The Special Housing Adaptation Grant lets veterans with service-connected disabilities buy a home to accommodate for any disabilities. The maximum allowable grant is $17,130 for 2019. Veterans can use both grants three times in their life up to the maximum dollar amount.
Additional State/Local Resources
Most states provide home-buying and mortgage assistance for low-income and disabled Americans. HUD has local home-buying programs in every state, and many of them offer down payment assistance.
A great resource for finding local home-buying programs is through your state's Housing Finance Agency. These agencies were established to provide affordable housing to low-income and disabled residents of every state.
Although each agency is different, the primary objective is to administer affordable housing and community development programs for disadvantaged residents in need of stable housing. Most state agencies provide assistance with your down payment. The National Council of State Housing Agencies has additional information about your state's finance agency.
Connect with a Clever Partner Agent today and discover all the home financing options and cost-saving opportunities available for people with disabilities.
Your partner agent will help you find disability home loan grants and programs administered by your state and local housing authorities.