By Phil Ganz
Edited by Ryan Skerritt
First, let's address a common question among Florida homebuyers:
Can You Buy a Home on Disability Income in Florida?
Yes, in Florida, you can purchase a home using disability income if it is stable, reliable, and expected to continue. Disability income, including Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI), is commonly accepted by lenders for mortgage applications.
According to the Fair Housing Act, lenders are prohibited from discriminating based on disability, although they will require proof of income.
Specific mortgage programs and housing grants in Florida provide additional assistance for disabled individuals. These include specialized disability home loans and standard mortgage options like FHA, VA, and USDA mortgages, which recognize SSDI and SSI as valid income sources.
There are also 25 grants and programs for all first-time homebuyers in Florida.
When applying for a mortgage, it's important to document that your disability income will likely continue for at least three years. For SSI and SSDI, this can be verified with the Social Security Administration's Award Letter or proof of current receipt.
If a mortgage applicant is not the person receiving the benefits (for example, a parent buying a home for a disabled child), they will also need to provide this documentation and demonstrate the continuity of income.
For disabled homebuyers in Florida, exploring all available mortgage options and grants is essential for finding the best home financing. This ensures that lenders recognize your income properly and increases your chances of obtaining a favorable mortgage approval.
The Best Home Loan Options for People With Disabilities in Florida
Before discussing specific grants and programs, it's important to explore the best loan options available to people with disabilities looking to purchase a home in Florida.
FHA Loan
Why It’s Good: FHA loans are advantageous for people with disabilities due to their lower down payment requirements and more lenient credit score criteria, making them more accessible.
Benefits and Requirements: Borrowers can qualify with a credit score as low as 580 to get a down payment as low as 3.5%. Additionally, FHA loans can accommodate higher debt-to-income ratios, which is beneficial if disability income is your primary source.
VA Loan
Why It’s Good: VA loans are excellent for disabled veterans as they offer benefits like no down payment and no private mortgage insurance.
Benefits and Requirements: To qualify, you must be a veteran, an active-duty service member, or an eligible family member. VA loans also provide specific benefits for disabled veterans, such as potential waivers on the VA funding fee.
USDA Loan
Why It’s Good: USDA loans are ideal for disabled individuals living in rural areas, as they provide 100% financing with no down payment required, reducing upfront costs.
Benefits and Requirements: Applicants must purchase a home in a USDA-eligible rural area and meet certain income limits, which vary by region and family size. The program is designed to promote homeownership in less densely populated areas.
Fannie Mae HomeReady Loan
Why It’s Good: The HomeReady program is tailored for low—to moderate-income borrowers. It offers flexibility for financing homes in diverse communities, making it suitable for individuals with disabilities.
Benefits and Requirements: Requires a minimum credit score 620 and offers down payments as low as 3%. It also allows co-borrower flexibility, where other household members’ incomes can help them qualify even if they are not on the mortgage loan.
8 Housing Grants and Programs for Disabled Individuals in Florida
Florida offers various housing grants and programs tailored to the needs of individuals with disabilities. These programs assist them in purchasing homes, making current residences more accessible, and covering other homeownership costs.
There are also 25 grants and programs for all first-time homebuyers in Florida.
Florida Hometown Heroes Program
Estimated Homebuying Savings: Up to $35,000 in assistance.
Description: This program provides down payment and closing cost assistance to first-time, income-qualified homebuyers employed in or serving their local Florida community, along with a lower first mortgage interest rate.
Requirements: Must be a first-time homebuyer, employed in or serving the community where the home will be purchased, meet certain income limits, have a credit score of at least 620, and complete a homebuyer education course.
HUD Housing Choice Vouchers (Section 8 Homeownership Voucher Program)
Estimated Homebuying Savings: Up to 30% of the homeowner's adjusted monthly income towards homeownership expenses.
Description: Allows eligible Section 8 rental assistance recipients to use their voucher to buy a home, with HUD covering parts of the mortgage and other homeownership costs.
Requirements: Current Section 8 voucher holder, meet income requirements not below the federal SSI benefit, purchase a HUD-approved property, and participate in a PHA’s homeownership counseling program.
Miami-Dade Advocacy Trust Grant
Estimated Homebuying Savings: Up to $28,500 in a forgivable loan.
Description: Provides no-interest, no-payment loans for down payment and closing costs, forgivable after 20 years of occupying the home as the primary residence.
Requirements: First-time homebuyer in Miami-Dade County, contribute own funds toward purchase, secure a mortgage through an approved lender, complete a homebuyer education course, meet income and purchase price limits.
National Housing Trust Fund
Estimated Homebuying Savings: Varies; aimed at providing affordable housing to the lowest income earners.
Description: Offers grants to states to build, preserve, and rehabilitate housing for people with the lowest incomes, which includes individuals with disabilities.
Requirements: Targeted towards individuals with incomes at or below the poverty line or 30% of the area median income, whichever is greater.
Own a Home Opportunity Grant Program
Estimated Homebuying Savings: Up to 5% of the total loan amount.
Description: Offers financial assistance for down payments or closing costs across several Florida counties.
Requirements: Meet financial criteria, including income and purchase price limits, have a credit score of at least 640, and the property must be a single-family home, condominium, or townhouse.
Own a Home Opportunity Program
Estimated Homebuying Savings: Up to $10,000 in assistance.
Description: Provides zero-interest, deferred loans for down payments and closing costs, more in Palm Beach County.
Requirements: First-time homebuyer, meet income and purchase price limits, complete a homebuyer education course.
Good Neighbor Next Door (GNND) Program
Estimated Homebuying Savings: 50% off the list price of the home.
Description: Offers a significant discount on homes in designated revitalization areas to teachers, law enforcement officers, firefighters, and EMTs.
Requirements: Employed full-time in a qualifying profession, agree to live in the property as the sole residence for at least 36 months and purchase a home in a HUD-designated revitalization area.
Section 811 Supportive Housing for Persons with Disabilities
Estimated Homebuying Savings: Provides housing at an affordable cost adjusted according to income.
Description: This program provides funding to develop and subsidize rental housing with supportive services for very low- and extremely low-income adults with disabilities.
Requirements: Must be a very low-income adult with a significant disability, seeking rental housing with access to appropriate supportive services.
FAQ on Housing Assistance for Disabled Individuals in Florida
How can disabled individuals ensure their disability income is considered for a mortgage in Florida?
When applying for a mortgage with disability income, such as SSDI or SSI in Florida, it's important to provide documentation that your income is stable, reliable, and expected to continue for at least three years. This can be verified with an SSA Award Letter or proof of current receipt.
The Fair Housing Act requires lenders not to discriminate based on disability and must treat disability income like any other income source.
What steps should disabled homebuyers take to enhance their chances of mortgage approval?
Disabled homebuyers should get pre-approved by a lender who understands their specific income and needs. It's also beneficial to work with housing counselors who specialize in assisting disabled individuals.
Completing a homebuyer education course, as many assistance programs require, can also prepare buyers for the financial responsibilities of homeownership.
How can disabled veterans find specialized housing assistance in Florida?
Disabled veterans in Florida can access several tailored programs, including VA loans, which provide significant benefits such as no down payment and no private mortgage insurance.
Disabled veterans should also explore additional waivers and available grants, such as the VA's Specially Adapted Housing grant, which can help modify a home to meet disability-related requirements.
Are there specific home-buying programs in Florida that assist with down payments and closing costs for disabled individuals?
Yes, several programs in Florida can help with down payments and closing costs. For instance, the Florida Hometown Heroes Program and various local initiatives like the Miami-Dade Advocacy Trust Grant offer financial assistance that can be particularly beneficial for first-time homebuyers with disabilities.
These programs often provide loans or grants forgiven over time, provided the home remains the buyer's primary residence.
What are some key considerations for disabled individuals when choosing a home loan program in Florida?
When selecting a home loan, disabled individuals should consider programs that offer low down payment options, flexible credit requirements, and inclusive income calculations. FHA and USDA loans are particularly advantageous due to their low barrier to entry and acceptance of disability income.
Additionally, evaluating whether the loan accommodates co-borrowers or considers household income can be crucial for meeting qualification criteria.
With over 50 years of mortgage industry experience, we are here to help you achieve the American dream of owning a home. We strive to provide the best education before, during, and after you buy a home. Our advice is based on experience with Phil Ganz and Team closing over One billion dollars and helping countless families.
About Author - Phil Ganz
Phil Ganz has over 20+ years of experience in the residential financing space. With over a billion dollars of funded loans, Phil helps homebuyers configure the perfect mortgage plan. Whether it's your first home, a complex multiple-property purchase, or anything in between, Phil has the experience to help you achieve your goals.
About Editor - Ryan Skerritt
Ryan Skerritt has over 10+ years of experience in the residential financing space. With over two hundred and fifty million of funded loan volume, Ryan has the skill set to help any homebuyer configure the perfect mortgage plan.
