If you are on disability, you likely assume that the income you make will be used for qualification purposes when you apply for an FHA loan. The answer is not as straightforward as you might think, though. Not all disability income is able to be used on loan applications. The circumstances surrounding the income greatly matter when it comes to qualifying for any type of loan, including FHA loans.

1. DISABILITY
INCOME
Why would
not be Used on an FHA Loan?

2. Not all disability income is able to be used on
loan applications. The circumstances
surrounding the income greatly matter when it
comes to qualifying for any type of loan,
including FHA loans.

3. Duration of Disability Payments
Disability income is different – they need to know how long
you are going to have the income as some disability income
is temporary while other disability income is long­term.
Basically, they want to see your income continue for 3 years
after the date of the loan in order to use it for qualifying
purposes.

4. Is your Disability Income Consistent?
Lenders want to see consistency, which means they
want to see regular deposits of the income in your bank
account. You have to prove receipt of the income; you
cannot just provide an award letter and state that you
receive the money

5. Your Condition does not Matter
The lender does not need to know how you got
hurt, where, or why. They just need proof of the
income and that it will continue. As long as you
can provide those documents, the lender or the
FHA cannot ask for anything further from you.

6. Your Condition does not Matter
The lender does not need to know how you got
hurt, where, or why. They just need proof of the
income and that it will continue. As long as you
can provide those documents, the lender or the
FHA cannot ask for anything further from you.

7. Disability income can typically
be used on an FHA loan for
qualification purposes as long
as you follow the rules. If you
do not know what you need to
provide, talk to your lender
about the documents they
require.

8. Finding the
Best FHA Lender
BestFHALender is a one­stop shop offering useful
information about FHA loans and enabling
customers to shop for multiple lenders.
CLICK HERE TO LEARN MORE

9. Information Provided by
Justin Mchood
He is Americas Mortgage Commentator
and has been providing Mortgage
commentary for over 10 years.

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