The Complete Guide to Home Loans for People on Disability

For many people, trying to buy a home can be a stressful process. But if you’re a person living with a disability, you might face unique challenges that increase the pressures of the home buying process even more than usual.

Depending on the situation, a disabled home buyer may need to search for housing that’s accessible for their disability or a home they can adapt to meet their needs. And if a person’s income is limited due to a disability, trying to buy a house with low income can present its own set of obstacles.

In truth, buying a home with a disability works largely the same as it does for everyone else. But there are resources (e.g., mortgages, grants, and other programs) with the potential to make homeownership more accessible for disabled persons. That’s great news for the 28.7% of adults in the United States who are living with a disability (according to CDC data).^[1]

If you’re interested in applying for a home loan on a government disability income, it’s helpful to research the process in advance—including the benefits, drawbacks, and your rights. The guide below can help you review available resources that could help you secure a home loan while living with a disability so you can be better informed about your options.

How the government defines a disability

Defining disability can sometimes be difficult because, even within the federal government, multiple definitions exist. Also, some disabilities are easy to observe while others may be harder for others to detect or understand. Yet even invisible disabilities may still be eligible for protection under federal and state laws.

If you’re a person living with a disability, you may qualify for disability benefits from the Social Security Administration (SSA). To be eligible for Social Security Disability Income (SSDI), you must meet detailed requirements set forth by the SSA.^[2] (Note: Lenders may include disability income on a mortgage application as long as there’s no expiration date on the benefits in the next three years.)^[3]

Whether or not you receive disability income benefits, you may be entitled to certain rights as a disabled person under federal law. According to the Americans with Disabilities Act (ADA), an individual with a physical or mental impairment that substantially limits one or more major life activities is considered disabled and is entitled to protections from the federal government.

Major life activities may include walking, hearing, speaking, breathing, learning, seeing, caring for yourself, or performing manual tasks.^[4] Furthermore, to qualify for federal disability protections, a person needs a history or record of impairment, or they could be perceived as having an impairment by others.^[5]

The ADA doesn’t outline specific examples of disabilities. But the U.S. Department of Housing and Urban Development (HUD) gives several examples of impairments that may limit major life activities and qualify a person for protections under the Fair Housing Act. These impairments could include (but are not limited to):

• Speech, visual, and hearing impairments
• Autism
• Cerebral palsy
• Epilepsy
• Muscular dystrophy
• Cancer
• Heart disease
• Multiple sclerosis
• Diabetes
• Human Immunodeficiency Virus (HIV)
• Drug addiction (excludes addiction caused by current use of illegal controlled substances)
• Alcoholism
• Developmental disabilities
• Mental illness
• Mobility limitations
• Neurological impairments
• Intellectual impairments^[4]

The impairments above are just a few examples of disabilities that may be entitled to receive protections under federal law. However, the disabilities above aren’t meant to be an exhaustive list.

Government home loans and grants for people with disabilities

Before you begin searching for the right home loan, it’s important to understand that you won’t find mortgages designed specifically for people with disabilities. Yet as a disabled home buyer, certain home loan programs may serve your borrowing needs better than others—especially if you have financial challenges due to a fixed or limited income. It’s also illegal for lenders to discriminate against you based on a disability.^[6]

Keep in mind that when you apply for a mortgage as a person with a disability, you’ll still need to satisfy a lender’s basic qualification criteria for the loan. So, it’s important to choose a loan with minimum credit score requirements, income requirements, and down payment requirements that are reasonable for your situation.

For example, shopping for a house that’s too expensive for your budget would be a serious home buying mistake. Likewise, if you choose a home loan program that features a large down payment requirement, it could make it more difficult (or even impossible) to purchase a home in a timely manner. But if you choose a home loan program with a low down payment requirement or find a grant to assist you with down payment savings, becoming a homeowner might become a more attainable goal.

Below are some examples of government home loans and grants that might work well for potential homebuyers with disabilities.

FHA loans

An FHA loan is backed by the Federal Housing Administration. Because the federal government helps to insure these loans in the event of a default, there’s less risk involved for the private lenders that issue them.^[7] As a result, it can be easier for applicants to qualify for FHA loans compared to other mortgages. FHA interest rates may be competitive as well—potentially offering interest savings over the life of your mortgage.

With FHA loans, you may also be able to purchase a home with a lower down payment or a higher debt-to-income (DTI) ratio compared to some other types of home loans. Minimum credit requirements for FHA loans tend to be more lenient as well. This combination of features could make FHA loans a good option for borrowers with disabilities and other would-be homebuyers who might have trouble qualifying for other home loan programs.

Basic FHA loan requirements:

• Minimum FICO Score® of 580 or higher (with a 3.5% down payment). Some lenders may accept a minimum FICO Score of 500 or higher (with a 10% down payment)
• Maximum DTI ratio of 57%, but most lenders prefer a DTI of 36%-41% (or below).^[8]
• FHA single-family home loan limits for 2025 range from $524,225 in low-cost counties to $1,209,750 in high-cost counties.^[9]

USDA loans

A USDA loan is another type of government-backed mortgage you may want to consider as a borrower with a disability or a low-income home buyer. Because the federal government guarantees a portion of USDA loans in the event of a default, these mortgages may also be easier to qualify for compared to other home loan programs.^[10] And since the lender’s risk on these loans is lower, well-qualified borrowers may enjoy lower interest rates as well.

Another big benefit of USDA loans for borrowers with disabilities and other home buyers is the fact that you can typically purchase a home with no down payment. However, one downside of these home loans is that you can only use them to buy properties in eligible rural areas.^[11]

Basic USDA loan requirements:

• There’s no official minimum credit score for a USDA loan, but lenders may require borrowers to have a FICO Score of 640 or higher.
• In general, the maximum DTI ratio for a USDA loan is 41%.^[12]
• Must purchase (or refinance) a property in an eligible rural area per USDA guidelines.
• USDA loans feature income limits that vary by household size and state. For 2025, the standard USDA income limit is $112,450 for households with 1-4 members and $148,450 for households with 5-8 members.^[13]
• Most USDA loans do not require a down payment.

USDA Single Family Housing Direct Home Loans

The USDA also offers Single Family Housing Direct Loans, known as the Section 502 Direct Loan Program, to eligible low- and very-low-income borrowers. The program aims to provide these households with mortgage payment assistance so they can access safe and affordable housing in eligible rural communities.

For those who qualify for the program, eligible low-income and very low-income borrowers may receive an initial annual percentage rate (APR) as low as 5.00%. (Rate effective as of April 1, 2025.) Borrowers can later apply to modify their APR to as low as 1% with payment assistance for up to a 38-year payback term.

To qualify for the Section 502 Direct Loan Program, applicants need to meet the following criteria. Eligible borrowers must:

• Lack safe, decent, and sanitary housing.
• Not be able to receive a loan elsewhere (at least not a loan that offers terms and conditions they can reasonably repay).
• Agree to live in the property as their primary residence.
• Prove they are a citizen or eligible non-citizen.
• Prove they’re not suspended or debarred from participating in federal programs.
• Have the legal capacity to accept a new loan obligation.^[11]

VA home loans and grants for people with disabilities

If you’re a Servicemember, Veteran, or a qualified surviving spouse, you may be eligible for a VA home loan. Veterans with qualifying disabilities may also be eligible for additional resources that could help modify their home to make it more accessible. Below are a few of the home loan programs and grants available to qualified disabled veterans.

VA loan

A VA loan is a type of government-backed mortgage program that’s available to eligible Servicemembers, Veterans, and qualified surviving spouses. Private lenders issue the mortgages and the U.S. Department of Veterans Affairs (VA) provides the guarantee to back them. The arrangement lowers the lender’s risk and makes homeownership more accessible for eligible borrowers, including many disabled Veterans. The VA has backed over 24 million home loans since the program’s creation in 1944.^[14]

VA loans also feature no down payment requirement—a potentially helpful perk for eligible disabled Veterans who may be tight on cash. And although most VA loans require most borrowers to pay a funding fee, if you’re eligible for VA disability benefits (due to a service-related disability), the VA waives the funding fee. Funding fees can cost as much as 3.30% of the loan amount (e.g., $12,840 on a $389,091 loan). So, getting this expense waived could potentially result in significant savings.^[15]

Basic VA loan requirements:

• Receive a Certificate of Eligibility (COE) for a VA loan from the U.S. Department of Veterans Affairs.
• The VA loan program doesn’t have an official minimum credit score requirement. But some lenders may require a 620 FICO Score from VA loan borrowers.^[16]
• The VA doesn’t set a maximum DTI ratio for VA loan borrowers. But if your DTI ratio is higher than 41%, you may need to show strength in other areas of your loan application (e.g., a good credit score, liquid assets, or other compensating factors). It’s also common for VA lenders to require a DTI of 41% or lower.^[17]
• Properties must pass a VA appraisal which can be more stringent than a standard mortgage appraisal. Examples of VA appraisal requirements include no lead paint, demanding cooling and heating systems be up to current code standards, and ensuring the roof is in good repair with several years of life remaining. The goal of a VA appraisal is to ensure the homes that Servicemembers and veterans finance are in good condition, and to protect lenders from bad investments.^[18]
• VA loan borrowers who still have their full VA loan entitlement don’t have to worry about a maximum loan limit when taking out a mortgage. Meanwhile in 2025, a qualified VA loan borrower with a reduced entitlement may receive a mortgage of up to $806,500 in most U.S. counties without needing to provide a down payment.^[19]

VA housing grants

The U.S. Department of Veterans Affairs also makes housing grants available to disabled veterans who need to make modifications to their homes. Disability housing grants for Veterans come in the following varieties.

• Specially Adapted Housing (SAH) grants: If you’re a veteran with a qualifying service-related disability, you may receive up to $117,014 to buy, build, or change a permanent residence you own or will own. You can use the grant money all at once, or in smaller increments (up to six different times throughout your lifetime).
• Special Home Adaptation (SHA) grants: If you’re a Veteran with a qualifying service-related disability, you may receive up to $23,444 to buy, build, or change your permanent home as long as you or a family member own (or will own) the property. Note: Qualifying service-connected disabilities for SHA grants include the loss or loss of use of both hands, certain severe burns, and certain respiratory or breathing injuries.
• Temporary Residence Adaptation (TRA) grants: TRA grants can provide money for modifications to a family member’s home where you’re living on a temporary basis while you use a SAH or a SHA grant to modify your permanent residence. You can receive up to $47,130 through the TRA grant program if you originally qualified for an SAH grant or up to $8,415 if you qualified for an SHA grant.

You can learn more about eligibility requirements for disability housing grants and apply online at the Department of Veterans Affairs website. It’s also possible to apply in person or by mail using VA Form 26-4555.^[20]

Other programs for home buyers with disabilities

Conventional loans

Conventional loans are mortgages that don’t feature any insurance or backing from the federal government. As a result, the qualification requirements for these types of loans may sometimes be stricter compared to certain types of government home loans.

Yet there are some conventional loan programs that feature low down payment requirements—as low as 3%. And some lenders may even offer well-qualifed borrowers special programs that feature 100% financing options. These solutions could be worth considering for home buyers with disabilities as well as borrowers with limited income. (See below.)

Basic conventional loan requirements:

• Minimum FICO Score of 620 or higher. Some lenders may require a credit score of 660.
• Down payment requirements may be as low as 3% with some conventional loan programs, and some lenders offer up to 100% financing (through special programs) for eligible borrowers. But you’ll need to put down 20% or more to avoid the extra cost of private mortgage insurance (PMI).^[21]
• Borrowers typically need a DTI ratio of 50% or less to be eligible for a conventional loan. Most lenders prefer a DTI of 36%-41% (or lower).^[22]
• In most U.S. counties, the conforming loan limit for a single-family conventional loan in 2025 is $806,500 is $806,500. Conventional loans that are higher than the conforming limit for their county are known as jumbo loans.^[23]

Freddie Mac Home Possible®

Freddie Mac Home Possible is a conventional mortgage program with a down payment as low as 3% for eligible borrowers. The loan program also allows applicants to include co-borrowers on the loan application who will not live in the home.^[24] So, if you have a family member or friend who plans to help you with your mortgage but won’t share your address, this home loan program might be a good fit. (Just do the math and make sure you’ll be able to afford the monthly mortgage payment on your own to avoid unnecessary financial stress.)

Fannie Mae HomeReady®

Another conventional mortgage program to consider as a home buyer with a disability is Fannie Mae HomeReady. The loan program features a 3% down payment and cancellable mortgage insurance for eligible borrowers. Eligible low-income first time homebuyers may also be able to take advantage of a $2,500 credit to apply toward down payment or closing costs.^[25]

Housing Choice Voucher (HCV) Homeownership Program

The HUD Housing Choice Voucher (HCV) Homeownership Program, commonly known as Section 8, provides eligible individuals and families with vouchers they can use to buy a home and apply toward monthly homeownership expenses. The program aims to make it possible for disabled, elderly, and very low-income families to have access to safe housing options.

In general, a household cannot earn more than 50% of the median income for their county or metropolitan area to qualify for the HCV program. And for disabled individuals, the minimum income requirements may be more lenient compared to the income requirements for non-disabled program participants.^[26][27]

Understanding your rights as a home buyer with a disability

As a potential home buyer with a disability, it’s important to understand that the federal government protects you from discrimination when you’re seeking a mortgage. You will still need to meet the same qualification requirements as other home buyers for most mortgage and grant programs. But lenders cannot deny you financing due to a covered impairment—visible or invisible.^[4]

The Fair Housing Act restricts mortgage lenders from housing discrimination including:

• Denial (or approval) of loans based on an applicant’s disability.
• Refusal to provide a mortgage (or information about a mortgage) to someone with a disability.
• Offering different borrowing terms, rates, or fees to a disabled person.
• Modifying homeowners insurance for a disabled person.
• Appraising a property differently for a disabled person.^[3]

Next steps

If you’re interested in buying a home and have a disability, it’s wise to do your research and learn everything you can about the homebuying process in advance. For many people, becoming a homeowner takes months (perhaps even years) of careful planning and saving. But homeownership may be a more attainable goal if you’re proactive and prepare upfront.

For example, you could work to build credit early in the homebuying process to put yourself in a better position when you apply for a mortgage. Likewise, you could start saving money toward a down payment long before you seek a preapproval for a home loan.

Eventually, you may also want to search for a trustworthy Realtor® in your area. A good real estate professional should be able to offer you additional guidance—including tips on finding mortgage lenders who have experience working with people on disability. (Remember, it’s a good idea to compare multiple lenders and several loan offers to make sure you find the best mortgage available for your situation.) When the time is right, a good Realtor can also help you find a house that’s accessible for your needs, or a property you can modify into the perfect place for you.

Sources

1. CDC.gov. “Disability Impacts All Of Us Infographic.” https://www.cdc.gov/disability-and-health/articles-documents/disability-impacts-all-of-us-infographic.html
2. SSA.gov. “Disability Benefits | How Does Someone Become Eligible?” https://www.ssa.gov/benefits/disability/qualify.html#anchor3
3. SoFi.com. “Home Loans for People with Disabilities: What You Should Know.” https://www.sofi.com/learn/content/home-loans-on-disability/
4. Justice.gov. “U.S. Department of Housing and Urban Development—Office of Fair Housing and Equal Opportunity.” https://www.justice.gov/crt/us-department-housing-and-urban-development
5. ADA.gov. “Guide to Disability Rights Law.” https://www.ada.gov/resources/disability-rights-guide/
6. QuickenLoans.com. “Home Loans for Disabled Buyers: Everything You Need to Know.” https://www.quickenloans.com/learn/home-loans-for-buyers-with-disabilities
7. ConsumerFinance.gov. “What is an FHA loan?” https://www.consumerfinance.gov/ask-cfpb/what-is-an-fha-loan-en-112/
8. RocketMortgage.com. “FHA Loans: Requirements, Loan Limits and Rates.” https://www.rocketmortgage.com/learn/fha-loans
9. HUD.gov. “2025 Nationwide Forward Mortgage Loan Limits.” https://www.hud.gov/sites/dfiles/OCHCO/documents/2024-21hsgml.pdf
10. FDIC.gov. “Single Family Housing Guaranteed Loan Program.” https://www.fdic.gov/resources/bankers/affordable-mortgage-lending-center/guide/part-1-docs/single-family-housing-guaranteed-loan-program.pdf
11. RD.USDA.gov. “Single Family Housing Direct Home Loans.” https://www.rd.usda.gov/programs-services/single-family-housing-programs/single-family-housing-direct-home-loans
12. QuickenLoans.com. “USDA Loans: Eligibility Requirements, Pros and Cons, and More.” https://www.quickenloans.com/learn/benefits-usda-loans
13. RD.USDA.gov. “Guaranteed Housing Program Income Limits.” https://www.rd.usda.gov/sites/default/files/rd-grhlimitmap.pdf
14. Benefits.VA.gov. “VA Home Loans.” https://benefits.va.gov/HOMELOANS/gibill_75.asp
15. VA.gov. “VA funding fee and loan closing costs.” https://www.va.gov/housing-assistance/home-loans/funding-fee-and-closing-costs/
16. VeteransUnited.com. “VA Loan Credit Score Minimums and Lender Requirements for 2025.” https://www.veteransunited.com/realestate/va-loans-and-credit-score-minimums-what-all-buyers-need-to-know/#:~:text=VA%20lenders%20typically%20require%20a%20FICO%20score%20of%20at%20least%20620
17. RocketMortgage.com. “Your Guide to Debt-to-Income (DTI) Ratio for VA Loans.” https://www.rocketmortgage.com/learn/debt-to-income-ratio-for-va-loan
18. Chase.com. “What to know about VA loan appraisals.” https://www.chase.com/personal/mortgage/education/financing-a-home/va-appraisal
19. VeteransUnited.com. “2025 VA Loan Limit Calculator.” https://www.veteransunited.com/education/tools/va-loan-limit-calculator/
20. VA.gov. “Disability housing grants for Veterans.” https://www.va.gov/housing-assistance/disability-housing-grants/
21. Experian.com. “What Is a Conventional Loan.” https://www.experian.com/blogs/ask-experian/what-is-a-conventional-loan/
22. RocketMortgage.com. “Debt-To-Income Ratio (DTI): What Is It and How Is It Calculated?” https://www.rocketmortgage.com/learn/debt-to-income-ratio
23. SingleFamily.FannieMae.com. “Loan Limit Values for 2025.” https://singlefamily.fanniemae.com/originating-underwriting/loan-limits
24. SF.FreddieMac.com. “Home Possible®” https://sf.freddiemac.com/working-with-us/origination-underwriting/mortgage-products/home-possible
25. SingleFamily.FannieMae.com. “HomeReady Mortgage.” https://singlefamily.fanniemae.com/originating-underwriting/mortgage-products/homeready-mortgage
26. HUD.gov. “Housing Choice Vouchers Fat Sheet.” https://files.hudexchange.info/resources/documents/HCV-Homeownership-Guidebook.pdf
27. Files.HUDExchange.info. “Housing Choice Voucher Homeownership Guidebook.” https://files.hudexchange.info/resources/documents/HCV-Homeownership-Guidebook.pdf

About the author

Michelle Lambright Black is a nationally recognized credit expert with two decades of experience. She is the founder of CreditWriter.com, an online credit education resource and community that helps busy moms learn how to build good credit and a strong financial plan that they can leverage to their advantage. Michelle's work has been published thousands of times by FICO, Experian, Forbes, Bankrate, MarketWatch, Parents, U.S. News & World Report, and many other outlets. You can connect with Michelle on Twitter (@MichelleLBlack) and Instagram (@CreditWriter).

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