You may think your financial worries are over once you’re approved for Social Security Disability benefits—but your finances may be scrutinized if you’re attempting to purchase a home.
The Consumer Financial Protection Bureau has outlined several new regulations to prevent lenders from implementing an illegal burden of proof of income on mortgage applicants who receive Social Security Disability benefits. According to an article from Mortgage Professional America, male lenders are asking disabled applicants for evidence of how long they’re expecting to receive their benefits. Some are even going so far as to ask for doctor’s notes and records to determine the longevity of conditions.
The agency explained that this practice should be abandoned because current regulations state that lenders should assume Social Security Disability benefits will continue indefinitely. Other ways lenders can avoid fair lending risks include:
- Having clear verification requirements
- Providing proper training to mortgage lenders
- Monitoring of compliance with underwriting standards
Even if you can document your benefits to qualify for a mortgage, you may still struggle to overcome the income limits to continue receiving Social Security Disability benefits. Currently, recipients are only allowed access to $2,000 in savings.
At Newlin Disability, we understand the struggles with income many disabled citizens face, which is why our Social Security Disability lawyers hope this information gives you some insight into what it may take to purchase a home while being considered disabled.
