Can I Apply for a Mortgage If I Receive Social Security Disability?

Did you know that you could collect Social Security Disability Insurance (SSDI) and apply for a home loan without facing discrimination? isolated FAQ button

Last week, the Consumer Financial Protection Bureau (CFPB) sent out a letter to mortgage lenders notifying them that it is illegal to impose burdens on people who receive SSDI benefits.

According to Mortgage Professional America, the CFPB issued a bulletin reminding lenders “requiring unnecessary documentation from consumers who receive Social Security disability income may raise fair lending risk.”

The notice reportedly called attention to legal standards when it comes to ensuring that SSDI recipients receive fair and equal access to credit lines. The CFPB reported that more than 15 million people receive SSDI each year, with many people being veterans of the U.S. armed forces, who should not have to face scrutiny over home loan applications.

“Everyone deserves the opportunity to qualify for a mortgage that they can afford,” said CFPB Director Richard Cordray in a statement. “Consumers should not be put at a disadvantage just because they receive Social Security disability income. Lenders should continue to make fair and responsibly underwritten mortgages without imposing unnecessary requirements on consumers who receive these benefits.”

Applying for SSDI Benefits

It is good that the CFPD is reminding lenders that SSDI recipients should be treated fairly when applying for a home loan. Remember, many beneficiaries have worked extended periods and have had unfortunate luck when it comes to their health.

To receive SSDI, you must have earned work credits. This means that a person could have saved money to purchase a home from previous employment even if he or she is collecting benefits.

Do not hesitate to contact our Tulsa Social Security disability lawyers for a free consultation if you are thinking about applying for benefits or need assistance with an appeal. Social Security law is all we do.

Troutman & Troutman, P.C. – Tulsa Social Security disability lawyers


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