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Owning a home can provide financial stability, independence, and the ability to build equity over time. However, the path to homeownership when you are disabled can be complicated, with additional hurdles that can be discouraging.

Fortunately, specialized assistance and financing options are available to help make the dream of homeownership a reality.

So, what are the best home loans for disabled individuals? And what grants are available for disabled homebuyers? This guide will walk you through the government and private resources that make homeownership accessible to buyers with disabilities.

Can You Buy a Home on Disability Income?

Yes, you can buy a home relying on disability income, provided it is stable, ongoing, and expected to continue. Most lenders, including those offering government-backed loans like the Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA), will accept disability income to qualify for a mortgage. 

The Fair Housing Act prohibits lenders from discriminating based on disability when considering a mortgage application. That means a lender cannot deny you a loan or impose unfair terms simply because you have a disability. However, lenders will thoroughly examine your income sources, just as they would any applicant, to ensure they are reliable.

Many specialized mortgage programs are designed specifically for disabled borrowers. These lenders will consider long-term disability payments, Social Security Disability Insurance (SSDI), Supplemental Security Income (SSI), and other verified disability income sources when determining if you qualify.

While meeting debt-to-income ratio requirements can take careful budgeting, disability income can absolutely be used to qualify if properly documented. Don’t assume homeownership is out of reach simply because you rely on benefits – you likely have more options than you think.

The Fair Housing Act

The Fair Housing Act is a critical piece of legislation designed to protect individuals from discrimination in housing and housing-related transactions; this includes those with disabilities. The Act prohibits discrimination based on disability, whether renting or buying. This includes lending—lenders cannot use a disability as a reason to deny financing or impose different terms or conditions on a loan, such as higher interest rates, more stringent qualification criteria, or higher down payment requirements.

The Fair Housing Act is the legal foundation for why Lenders must consider all reliable income sources (SSDI, SSI, & other disability income) when evaluating a loan application.

Federal Grants and Programs

The pathway to an affordable, accessible dream home may seem challenging when you have a disability, but you’d be surprised at the federal grants to help disabled buy a home and other programs available. Financial assistance exists—you just need to find it.

The US government has a variety of disability benefits and funding sources specifically to help people with disabilities secure suitable housing. Key federal programs include:

• Section 811, Supportive Housing for Persons with Disabilities, funds nonprofit developers who construct affordable, accessible housing with supportive services for very low-income adults with significant disabilities.
• HOME Investment Partnerships Program which provides grants to states and localities to fund a wide range of affordable housing activities—including building, buying, and rehabilitating affordable housing for rent or homeownership.
• Community Development Block Grant (CDBG) provides communities with resources to address housing and development needs with funds that can be used to improve accessibility for people with disabilities through rehabilitation and modifications.

The U.S. Department of Housing and Urban Development (HUD) Programs

For affordable, accessible housing, HUD provides specialized programs to help people with disabilities. What are the key options?

Section 811 Supportive Housing for Persons with Disabilities

The Section 811 program funds nonprofit developers to construct affordable rental housing with supportive services for low-income adults with significant disabilities.

HUD offers long-term, low-interest loans to cover development costs. Rental assistance funding is also provided to make housing affordable for eligible residents—units must be leased to adults with disabilities earning less than 50% of the area median income.

Section 202 Supportive Housing for the Elderly Program

Similar to Section 811, the Section 202 program offers capital funding to nonprofits that finance the construction of affordable rental housing for low-income seniors.

HUD provides long-term, low-interest loans and rental subsidies, so residents pay only 30% of their adjusted income toward rent and utilities. At least one household member must be at least 62 years old. The applicant must earn less than 50% of the area median income to qualify.

Rental Voucher Programs

The Housing Choice Voucher (HCV) helps very low-income families, seniors, and people with disabilities access affordable private housing. Participants are able to apply to housing that meets HUD requirements and are not limited to supported housing projects.

HUD also offers targeted Non-Elderly Disabled Vouchers exclusively for disabled renters through select agencies. These vouchers subsidize a portion of monthly rent to make it affordable based on income. Applicants can use vouchers at any suitable unit where the landlord agrees to participate.[KH1] 

Homeownership Voucher Program

The HVC homeownership program allows assisted families to use their vouchers to purchase a home instead of as rental assistance.

The program assists with homeownership costs such as mortgage payments, taxes, insurance, and other costs. Eligibility includes being a first-time buyer, meeting work requirements, getting a housing counseling program, and purchasing a HUD-approved home. The program enables voucher recipients to shift from renting to owning with continued assistance.

Specialized Home Loans for the Disabled Home Buyers

Several government-backed mortgage programs offer benefits tailored to homebuyers with disabilities. These specialized loans feature lower down payments, flexible credit requirements, and options to include disability income.

Fannie Mae’s HomeReady Program

Fannie Mae’s HomeReady mortgage makes buying more accessible. The HomeReady program helps creditworthy low- to moderate-income buyers, including those with disabilities, overcome down payment barriers.

With flexible options like 3% down and income limits based on area medians, this loan opens doors. This program provides an alternative to FHA loans for buyers needing low down payments but wanting a conventional loan.

Who Qualifies for the HomeReady Program?

To qualify for a HomeReady mortgage, homebuyers must have:

• A minimum credit score of 620.
• Income at or below 80% of area median income limits.
• Completed the required homebuyer education course.

 While the program allows non-occupant borrowers to assist with qualification, the HomeReady is only for primary residences, not investment properties.

Income Limits for the HomeReady Program

HomeReady mortgage eligibility depends on your income falling at or below 80% of your area’s median income. You can verify income limits by property address using Fannie Mae’s Income Eligibility Lookup tool.

Freddie Mac’s Home Possible Mortgages

Alongside Fannie Mae’s HomeReady program, Freddie Mac offers Home Possible mortgages to expand homeownership access for low to moderate-income buyers. While not exclusively for buyers with disabilities, it is an excellent option for those relying on disability income.

Like HomeReady, Home Possible features flexible qualifying guidelines, including down payments as low as 3% of the purchase price. Borrowers can use gift funds and grants for their down payment and closing costs. Income from SSDI, SSI, or long-term disability payments can be used to qualify.

Another benefit is reduced mortgage insurance coverage and cancellable mortgage insurance once 20% equity is reached, which saves money long-term. Homebuyer education is also required to promote responsible ownership.

The Home Possible mortgages help disabled borrowers overcome obstacles and achieve affordable homeownership. If you’re on a strict budget but can still afford monthly payments, Home Possible could work for your situation.

Who are Home Possible Loans for?

Home Possible mortgages are for low-income borrowers, including those who are disabled. To be eligible for a Home Possible mortgage, you must:

• Have an income of less than 80% of the area median. Freddie Mac provides an income lookup tool to verify your eligibility.
• Have a credit score of 580 or higher.
• Occupy the home as your primary residence and own no other properties.

Benefits of Home Possible Loans

The main benefit of Home Possible Loans is that you only need a 3% down payment, which is lower than even FHA loans. This majorly reduces the cash needed upfront.

Furthermore, unlike conventional loans, your down payment can be gifted, whether from family, an employer program, or other sources. Credit requirements are also more flexible than standard mortgages. The minimum FICO score is 580, so buyers with limited credit history can potentially qualify.

Additionally, mortgage insurance coverage is discounted, and you have the option to cancel MI once you reach 20% equity in the home’s value. This saves money, especially long-term.

State and Local Grant Programs

In addition to federal assistance, most states offer their own grants and programs to support affordable homeownership for buyers with disabilities. These state-specific resources can make purchasing or modifying a home more feasible.

Options vary widely across the country; research what’s available according to your location. Most programs fall under the category of ‘down payment assistance programs,’ meaning that they are used in combination with another loan to help with the borrower’s down payment. Other programs are grants to help disabled homeowners modify their properties for better accessibility.

 A few examples of state and local programs include:

• New York – HomeFirst Down Payment Assistance Program
  Provides qualified NYC homebuyers up to $100,000 toward down payment and closing costs on a home purchase. The subsidy is a 0% deferred loan.
• California – CalHome Program
  Assists low-income first-time homebuyers in California cities like Oakland with down payment assistance loans to fill financing gaps. Loans are deferred for 30 years.
• Illinois – Illinois Home Accessibility Program
  Offers grants of up to $25,000 to Illinois homeowners and renters with disabilities to make home modifications for improved accessibility and safety.
• Florida – Florida Assist (FL Assist)
  A down payment assistance program is provided to FHA, VA, conventional, USDA loans, and borrowers with a second mortgage of up to $10,000. Repayment is deferred until the sale, transfer, refinance, or the first mortgage is paid off.

Consult state and local housing agencies to learn about programs available in your area to support affordable home buying and ownership for buyers with disabilities.

Non-Profit Organizations

Assistance for disabled home buyers is not limited to government-funded organizations. There are also various non-profit organizations that make a considerable impact, helping people with disabilities own property and get access to the services they need to live as independently as they can.

Habitat for Humanity’s Homeownership Program

Habitat for Humanity is an international organization that serves low-income earners to improve their living conditions.

In the United States, Habitat is primarily known for building homes or remodeling dated properties to bring them up to liveable standards. Criteria for renovations and construction are based on the level of need, but they often build with accessibility in mind.

Under Habitat for Humanity’s Homeownership Program, homes are then sold to qualifying low-income families (including those with disabilities) so they can experience stability and build equity through homeownership. Many of their homes are built to be accessible to those with physical disabilities.

Habitat families spend no more than 30% of their household income on housing and are not required to have a down payment. Additionally, they pay 0% interest on their mortgage. Instead, homeowners are required to invest “sweat equity” in the form of volunteer hours, either on their own homes, on other properties the organization is working on, or through other Habitat for Humanity volunteer opportunities.

Requirements for the Habitat for Humanist’s Homeownership Program vary by location but generally include:

• Falling under income limits, typically 30-60% of area median income.
• Lacking decent current housing conditions.
• Demonstrating need, willingness to partner, and ability to pay the mortgage.
• Committing to sweat equity participation.

If you qualify, you’ll complete an extensive application with your local branch detailing your current housing, income, debts, and more. Applications are ranked based on need. If selected, you’ll attend informational meetings and begin accumulating sweat equity.

Benefits of Habitat Homeownership

The top benefits of the Habitat for Humanity Homeownership Program include:

• The pride and stability of homeownership.
• Building equity over time.
• Mortgage payments scaled to income.
• Housing that meets your family’s needs.
• Support before and after purchase.

Habitat fosters community improvement by concentrating investment in certain neighborhoods. If your need matches their mission, Habitat may offer an affordable path to accessible homeownership.

National Council on Independent Living

The National Council on Independent Living (NCIL) provides valuable resources to support affordable and accessible housing options for people with disabilities.

As an advocacy organization for independent living, NCIL offers information and guidance to help remove barriers to homeownership. Key offerings include:

• Information on home modifications and accessible housing design.
• Toolkits to help disabled individuals through the home-buying process.
• Referrals to local Centers for Independent Living (CILs), which can provide housing counseling.
• Advocacy for increased funding of independent living services.
• Training and webinars on topics like fair housing rights for buyers with disabilities.

Rebuilding Together

Accessing homeownership when you are disabled doesn’t stop at loans – for many their homes need modifications to enable independent living. Rebuilding Together focuses on advancing disability rights and independent living through community initiatives. Their Safe At Home Program assists elderly and disabled homeowners by installing home modifications such as grab bars, railings, ramps, and making other critical repairs and accessibility modifications.

Qualifying low-income homeowners can apply to receive home modifications completely free of charge. Through home modifications, Rebuilding Together aims to help vulnerable populations maintain independence and continue living comfortably in their own homes.

The Corporation for Supportive Housing (CSH)

The Corporation for Supportive Housing (CSH) is a national non-profit organization dedicated to advancing affordable housing solutions that improve health, increase housing stability, and reduce public system use.

While not solely focused on disability, many of CSH’s supportive housing models and policy efforts help expand affordable, accessible housing options for people with disabilities. CSH’s services include:

• Loan funds to develop accessible housing.
• Advocacy for policy reforms.
• Consulting on accessible housing design.
• Research on effective supportive housing innovations.

Additional Financing Options

Combining different programs and financial products can help disabled buyers cover more costs associated with purchasing and modifying a home.

Down Payment Assistance Programs

Down Payment Assistance (DPA) programs provide grants or low-interest secondary loans to cover all or part of your down payment. These loans help buyers who can manage monthly mortgage payments but lack funds for the initial down payment.

DPA programs are offered by government agencies, non-profits, banks, and other lenders. When layered with a primary mortgage, DPA can make homebuying more feasible for lower-income disabled buyers.

VA Home Loans for Disabled Veterans

The VA home loan program offers 100% financing and other benefits for eligible disabled veterans.

Key benefits include:

• Waived VA funding fees.
• Option for home adaptation grants up to $109K.
• Qualifying with disability income.
• Lower mortgage rates.
• Flexible credit criteria.

 Removing down payment barriers and offering home modification funds helps disabled veterans access homeownership.

VA Home Loan Requirements

While flexible, VA loans do have eligibility requirements. Eligible veterans must:

• Have sufficient income to cover mortgage payments.
• Occupy the home as your primary residence.
• Have a satisfactory credit history.
• Meet service length requirements.

Grants for Disabled Veterans

Taking advantage of every available program, along with mortgage and down payment assistance, can make buying a home adapted to your disability needs more feasible.

Grants for veterans with service-connected disabilities are available through the VA. Veterans must meet disability requirements, so it’s important to check which grant you might qualify for:

• The Special Adapted Housing Grant is for qualifying veteran homeowners, allowing them to access up to $109,000 for home modifications.
• The Special Home Adaptation is another program that can be made available to qualifying veterans or their family members for home modifications. This grant can provide up to $23,000.

Consider HUD Housing Counselors

Accessing services and grants that help disabled buyers purchase a home can be complicated. HUD-approved housing counseling agencies provide valuable guidance to navigate the processes with each agency.

HUD-certified counselors help potential homebuyers understand their options and identify resources. Their services include:

• Explaining programs and requirements for grants.
• Assessing mortgage readiness and reviewing loan options.
• Providing guidance on buying and financing accessible homes.
• Assisting with the application process.
• Helping buyers access DPA programs.
• Offering guidance on credit improvement.

Owning an Accessible Home is Within Reach

Purchasing an affordable, accessible home adapted to your needs as a buyer with disabilities is achievable with the right approach. Specialized loans, grants, and assistance programs make homeownership possible.

The key is understanding your options and piecing together the best resources for your situation. You deserve to feel empowered, not overwhelmed. Take advantage of every program tailored to your needs. Work with lenders experienced in serving buyers on disability income. Consult housing counselors to identify grants and aid you qualify for. And partner with a real estate agent knowledgeable about accessibility requirements.

Having an expert in your corner who understands your specific accessibility requirements will give you the confidence to navigate the process. FastExpert can help you easily connect with top local agents equipped to help make the dream of owning your own home a reality. Just search your area, review agent profiles, and get matched with a qualified agent.

The homeownership dream is within your reach. It just takes the right guidance and financing mix.

100% home loans aren’t common. The truth is that before they approve a mortgage, most lenders like to see a deposit – even if it’s just five per cent. But there still are ways you can get a home with no deposit at all. For instance, if you’re a first home buyer, you may be able to use money from a government scheme, such as a first home owner grant or HomeBuilder instead of saving a deposit. You may even be able to use your superannuation if you’re contributing money to the First Home Super Saver Scheme. Alternatively, if you have a family member willing to help you out, you may be able to get a 100% home loan by using a guarantor on your loan.  

How does the no deposit home loan work?

Most people buy a home by paying a deposit and using a home loan to finance the rest of the property’s value. The deposit represents the part of the home you own (known as equity), while the home loan represents the amount you need to still pay off. A standard deposit for a home loan is typically 20%, but it’s possible to get a loan with far less than this saved. When you buy a home, most lenders will expect you to have at least five per cent of the purchase price before they give you a loan. That means they’ll lend you a maximum of 95% of the property’s value, which is also known as having a loan-to-value ratio (LVR), of 95%. For instance, if you’re buying a home valued at $500,000, a bank will usually expect you to have savings of at least $25,000 before giving you a loan. Even then, they’d ask you to take out lenders mortgage insurance (LMI), which adds to the cost of your repayments but protects the bank if you default.  To avoid LMI, you’d need savings equivalent to at least 20% of the purchase price, or in this instance, $100,000. A no deposit home loan would mean you’re borrowing 100% of the value of the home, so you own no equity in the property at all.  Banks are reluctant to allow this because it makes the loan a riskier proposition for them.  However, even if you have no deposit, there may be other options available to you.  

1.  Use a guarantor

A guarantor is someone who uses the equity in their home as security for your home loan. In other words, even though the mortgage will be against the home you’re buying, the bank takes an interest in another property to reduce their risk. When you use a guarantor, some lenders may let you borrow up to 105% of the value of the property you’re buying (i.e. you may be able to borrow enough to cover stamp duty and other upfront costs, as well as the property). That said, if you default on your home loan, the bank has the right to recoup any loss from the guarantor, including by selling the guarantor’s property. To help reduce the risk to the guarantor, some lenders now also allow partial guarantees. Find out more about who can be a guarantor.  

2. Use a first home owner grant (FHOG)

Most states and territories help first home buyers get on the property ladder by giving them a first home owner grant (FHOG) they can put towards the cost of their first home, so long as it meets certain criteria. Usually, this means buying a new apartment or home under a certain value, or building your own place to live. For instance, the NSW government currently offers a $10,000 grant to first home buyers purchasing a newly built home under $600,000 or building their own home valued under $750,000. The Victorian government offers a grant of $10,000 to first home owners buying a metropolitan property valued under $750,000 and a $20,000 grant for a regional property under this threshold, so long as the property is less than five years old. These grants come on top of generous stamp duty concessions and exemptions and lenders will often let you count your FHOG as part of your deposit, meaning you potentially may not need to have saved any money towards your home. However, this is rare. Most lenders will want to see at least some evidence of  ‘genuine savings’. The Commonwealth government’s First Home Loan Deposit Scheme can’t be used as a deposit, but could help you avoid LMI by guaranteeing the difference between your deposit and 20% of the home’s value. Read more about whether you qualify for the first home owner grant in your state or territory.  

3. Use the federal HomeBuilder grant

The Commonwealth government’s HomeBuilder scheme provides a $25,000 grant to people buying or building a new home. To be eligible, the contract must be signed between 4 June 2020 and 31 December 2020 and the property’s value (including house and land) must be under $750,000. You also must earn less than $125,000 if you’re applying as an individual and $200,000 if you’re applying as a couple. Depending on your State or Territory, some lenders may allow you to use this towards your home deposit.  

4. Use your superannuation

Did you know that in some circumstances you can use your super towards a home deposit? The Commonwealth Government’s First Home Super Saver (FHSS) Scheme lets you make extra contributions to your superannuation, which you can then withdraw and use towards a home deposit. This gives you the advantage of only paying the 15% superannuation tax rate on the money you’re saving towards your home rather than your marginal rate of tax. The FHSS comes with strict criteria, including limits on how much you can contribute. You’ll also need to apply to have your money released. However, there’s no limit on the type of home you can buy with this money – it doesn’t have to be new or under a certain threshold.  

5. Use a gift

With property prices so high, it’s not uncommon for first home buyers to receive a helping hand from parents or other close family members. Many lenders will let you use the gift you receive as part of your deposit. However, to satisfy them that you’ll be able to keep meeting your repayments, some may still want to see that you have genuine savings outside of any gift. This is especially true if your deposit is 10% or less.  

Buying a home with no deposit

While banks are reluctant to offer 100% home loans, first home buyers still have options. Some or even a combination of several of the schemes outlined above may help you get on the property ladder without having saved a deposit at all.

This article was originally published on
27 Nov 2020 at 2:01pm
but has been regularly updated to keep the information current.