What we verified in “Disability income (SSI and SSDI) and your mortgage”

Statements and where we checked them

The statements with rules, figures or dates, with the exact place in the source and the date we checked them.

1. According to HUD Handbook 4000.1, disability benefits are those paid by the Social Security Administration (SSA), VA, other public agencies or a private disability insurer; the lender must verify and document that you receive them and get the document establishing the award; if the benefit expires within three years of the application, it cannot be used as income; if the Notice of Award has no defined expiration date, the lender may consider the income likely to continue; it may not treat a pending or current medical re-evaluation as evidence that the payment will not continue; and under no circumstance may it ask about or request documents on the nature of the disability or your medical condition.

   Sources 1 · Handbook 4000.1, II.A.4.c.xii(A) 'Disability Benefits (TOTAL)', pp. 232–233: 'benefits received from the Social Security Administration (SSA), Department of Veterans Affairs (VA), other public agencies, or a private disability insurance provider'; 'must verify and document the Borrower's receipt of benefits'; 'If any disability income is due to expire within three years from the date of mortgage application, that income cannot be used as Effective Income'; 'If the Notice of Award or equivalent document does not have a defined expiration date, the Mortgagee may consider the income effective and reasonably likely to continue'; 'may not rely upon a pending or current re-evaluation of medical eligibility'; 'Under no circumstance may the Mortgagee inquire into or request documentation concerning the nature of the disability or the medical condition of the Borrower' · Checked October 31, 2026

2. According to Handbook 4000.1, for Social Security disability income, including SSI, the lender must get the last Notice of Award or an equivalent document, and one of these: tax returns, the most recent bank statement showing the SSA deposit, an SSA proof of income letter (also called a Budget Letter or Benefits Letter) or form SSA-1099; and for VA disability benefits, the last VA Benefits Letter and tax returns or a bank statement.

   Sources 1 · Handbook 4000.1, II.A.4.c.xii(A)(2)(a) 'Social Security Disability', p. 233: 'For Social Security Disability income, including Supplemental Security Income (SSI), the Mortgagee must obtain a copy of the last Notice of Award letter, or an equivalent document'; 'Tax Returns'; 'the most recent bank statement evidencing receipt of income from the SSA'; 'a Proof of Income Letter, also known as a "Budget Letter" or "Benefits Letter"'; 'form SSA-1099/1042S'; (b) 'Department of Veterans Affairs Disability ... last Benefits Letter' · Checked October 31, 2026

3. According to Handbook 4000.1, income not subject to federal tax includes, among others, part of Social Security income, certain disability and public assistance payments, child support and Section 8 vouchers; the lender may add the tax savings to your gross income, not to exceed the greater of 15% or your applicable tax rate based on the previous year; if you did not have to file a return last year, it may gross up the income by 15%; it must document the amount and the rate; and it may not make extra adjustments for the number of dependents.

   Sources 1 · Handbook 4000.1, II.A.4.c.xii(P) 'Nontaxable Income (Grossing Up) (TOTAL)', p. 248: 'some portion of Social Security Income'; 'certain types of disability and Public Assistance payments'; 'Child Support'; 'Section 8 Housing Choice Vouchers'; 'must document and support the amount of income to be Grossed Up'; 'cannot exceed the greater of 15 percent or the appropriate tax rate for the income amount, based on the Borrower's tax rate for the previous year'; 'If the Borrower was not required to file a Tax Return for the previous tax reporting period, the Mortgagee may Gross Up the Nontaxable Income by 15 percent'; 'may not make any additional adjustments or allowances based on the number of the Borrower's dependents' · Checked October 31, 2026

4. According to Fannie Mae's Selling Guide (B3-3.4-15, dated October 7, 2026), for Social Security disability income based on your own work record the lender accepts the SSA award letter, the SSA-1099, your most recent signed tax returns (or transcripts) or proof of current receipt; for Supplemental Security Income (SSI), the award letter and proof of current receipt; no minimum history is required; for disability on your own record, the lender need not verify continuance unless it has reason to doubt it, and in other cases it must document that the income will continue at least three years; and the lender may gross up 15% of Social Security income as nontaxable without more documentation.

   Sources 2 · Selling Guide B3-3.4-15, Social Security Income (10/07/2026): 'Disability Social Security Administration's (SSA) Award letter, SSA-1099, Most recent signed federal income tax returns (or tax transcripts), or Proof of current receipt'; 'Supplemental Social Security Income SSA Award letter, and Proof of current receipt'; 'Income History No minimum history is required'; 'Retirement/Long-Term Disability based on own account/work record: Lenders are not required to verify continuance unless they have reason to believe the income may not continue'; 'Other scenarios: The lender must document that income is expected to continue for at least three years'; 'The lender is not required to provide documentation to support that 15% of the Social Security income is nontaxable' · Checked October 31, 2026

5. According to Fannie Mae's Selling Guide (B3-3.4-15), Social Security income you receive on another person's record, such as a spouse, ex-spouse or parent, or income a dependent of yours receives, such as a minor or disabled child, can also be used; in those cases the lender asks for the award letter, proof of current receipt and three-year continuance, which it can confirm, for example, with the beneficiary's age if SSA ties the benefit to age.

   Sources 2 · Selling Guide B3-3.4-15: 'Borrower is drawing Social Security benefits based on another person's account/work record or based on their own account/work record for the benefit of another'; 'SSA Award letter, Proof of current receipt, and Three-year continuance'; 'A borrower may be eligible for benefits from a spouse, ex-spouse, or dependent parents'; 'A borrower may use Social Security income received by a dependent (a minor or disabled dependent)'; 'if the SSA ties receipt of the benefits to the beneficiary's age, confirmation of a three-year continuance can be met by verifying the beneficiary's age' · Checked October 31, 2026

6. According to Fannie Mae's Selling Guide (B3-3.4-09), for long-term disability income not from SSA, the lender asks for the policy or benefits statement from the payer (an insurer or the employer) to see your current eligibility, the amount and frequency, and any termination or modification date; it needs evidence you will get at least one payment by your first mortgage payment date; no minimum history is required; it need not verify continuance unless it has reason to, and a re-evaluation of benefits is not a reason to think the income will end; and if you receive short-term benefits that will drop within three years when they convert to long-term, the long-term amount is used.

   Sources 3 · Selling Guide B3-3.4-09, Long-term Disability Income (03/04/2026): 'a copy of the borrower's disability policy or benefits statement from the benefits payer'; 'the borrower's current eligibility'; 'the amount and frequency'; 'contractually established termination or modification date'; 'at least one payment on or before the first payment due date'; 'No minimum history is required'; 'Lenders are not required to verify continuance unless they have reason to believe the income may not continue. (Re-evaluation of benefits is not considered a reason to support income will not continue.)'; 'the amount of the long-term benefits must be used' · Checked October 31, 2026

7. According to Fannie Mae's Selling Guide (B3-3.1-01, dated October 7, 2026), the lender must verify that income is nontaxable with documents such as award letters, policy agreements, account statements or tax returns; if it is, and it is likely to stay that way, the lender should add an amount equal to 25% of the nontaxable income to your income; and if the taxes a wage earner in a similar bracket would pay exceed 25%, it may use that amount.

   Sources 4 · Selling Guide B3-3.1-01, General Income Information (10/07/2026), 'Nontaxable Income': 'The lender must verify that the particular source of income is nontaxable, using documentation such as award letters, policy agreements, account statements, tax returns'; 'the lender should develop an "adjusted gross income" for the borrower by adding an amount equivalent to 25% of the nontaxable income'; 'If the actual amount of federal and state taxes that would generally be paid by a wage earner in a similar tax bracket is more than 25%' · Checked October 31, 2026

8. Under Regulation B of the Equal Credit Opportunity Act (12 CFR §§1002.2(z) and 1002.6(b)(5)), the fact that all or part of your income comes from a public assistance program is a prohibited basis, and a creditor may not discount or exclude your income because of a prohibited basis; it may consider the amount and probable continuance of the income.

   Sources 5 · 12 CFR §1002.2(z): 'Prohibited basis means ... the fact that all or part of the applicant's income derives from any public assistance program'; §1002.6(b)(5): 'A creditor shall not discount or exclude from consideration the income of an applicant or the spouse of an applicant because of a prohibited basis'; 'a creditor may consider the amount and probable continuance of any income' · Checked October 31, 2026

9. Under the SSI regulation (20 CFR §416.1212), a home is property you have an ownership interest in that is your principal place of residence, including the land it sits on; SSA does not count the home as a resource regardless of its value; if you move out without intending to return, the home becomes a countable resource; and if you leave because of domestic abuse, SSA does not count it.

   Sources 6 · 20 CFR §416.1212(a): 'A home is any property in which an individual (and spouse, if any) has an ownership interest and which serves as the individual's principal place of residence'; 'the land on which the shelter is located'; (b): 'We do not count a home regardless of its value'; (c): 'moves out of his or her home without the intent to return, the home becomes a countable resource'; (d): 'fleeing the home as a victim of domestic abuse, we will not count the home' · Checked October 31, 2026

10. Under the SSI regulation (20 CFR §416.1205), since January 1, 1989 the countable resource limit has been $2,000 for an individual and $3,000 for an individual and spouse.

    Sources 7 · 20 CFR §416.1205(c): 'Effective date Individual Individual and spouse'; 'Jan. 1, 1989 2,000 $3,000' · Checked October 31, 2026

11. According to the CFPB, the counseling agencies on its list are approved by HUD and can offer independent advice about whether a set of mortgage loan terms fits your goals and situation, often at little or no cost.

    Sources 8 · Find a housing counselor: 'approved by the U.S. Department of Housing and Urban Development (HUD), and they can offer independent advice about whether a particular set of mortgage loan terms is a good fit based on your objectives and circumstances, often at little or no cost to you' · Checked October 31, 2026