Buying a home with SSDI?

Question

My fiance and I are planning to move out of state next year. He's currently working (minimum wage level jobs), but would be looking for a new job when we go. I am on SSDI. There are some small homes in the area we're looking at for under $60,000, and the mortgage on such a home would be substantially cheaper than rent.

We'll have about $10,000 (minimum) saved up when it comes time to move, and a good chunk of that could be used as a down payment. The mortgage would, theoretically, be about $200-$400. I get about $800 a month (along with food stamps, discounted electric, fuel assistance etc). And our other expenses are very low. My fiance wouldn't be working, but we would have enough set aside for several months of him looking for work, and we'll be doing our best to find him something before we leave.

Mathematically, this all seems doable, but is it at all realistic to try to get a mortgage under these circumstances? Or would I be laughed at? Is there a good place to start in this situation?

Some other details:
- My credit is in decent condition.
- My fiance has no credit.
- My parents would not be in a position to cosign. 
- I have nothing in terms of collateral.
- I have ample time to plan a move.
- Our parents have indicated they may be willing to help with a larger down payment as a gift.
- I'm open to buying the home without him if it helps, or getting married prior to buying.

loanmasterone · Accepted Answer

In order to be approved for a mortgage loan, your fiance would have to be employed. The amount of your SSDI is not sufficient to be approved for a mortgage loan.

In moving to another state, the current benefits you are currently approved for might not necessarily be available to you, in the new state you would be moving to. It might be that you would could apply for these same benefits and there would be a residency requirement or you would be placed on a waiting list.

It might be to your benefit to check with the state you are contemplating moving to and find out about the current benefits you would want to keep and be available to you in your new state. It might be that your current case worker might be of some help in answering these questions.

Normally in order to be approved for a mortgage loan you would be required to prove a minimum of 2 years of steady employment. Your fiance would not have this proof. You would also have to have pay stubs,proving you are currently employed, W-2 forms and filed federal income tax for the past 2 years.

Normally earning the minimum wage would not place you in the best position to purchase a house through a mortgage lender approved mortgage loan.

If you insist on purchasing a house it might be that you would need to use another method.

You might consider

#1.Owner carry mortgages

#2. Rent/lease to own (make sure you are legally protected in this type purchase agreement)

#3. Assuming another owners mortgage loan by assuming their mortgage loan using the "Subject To the existing mortgage" clause in your purchase contract.

You would have to know someone that are aware of these methods to purchase a house or you would have to become aware of these methods and how to use them properly.

In using either method you would need a down payment as well as you would be required to pay closing cost of the sale transaction.

I hope this has been of some benefit to you, good luck.

"FIGHT ON"

? · Answer

Doubtful you would be approved - even for a small mortgage.

Yes, it may work on paper but mortgage lenders want to see steady employment history and income.  As fiance doesn't not have that - or possibly not even a job when you move - that would let him out.

And I don't believe income from SSDI along with the other assistance - qualifies.

Mortgage lenders will not consider just have several months of payments available.  They want to see employment that could pay several years of payments.

? · Answer

skip it - simple.

neither of u qualify for a house in USA.

he needs to focus on getting an education
getting a good paying in demand job.
he may need to move 50 -400 miles for
a job with education.
where does that leave u?

no one told u the reality of 
house ownership.

make your move, live in extended stay motels.
he finds work, u pay in advance for apartment
6 month leases.

that 10K isn't enough to get started.
a loan at such a low value requires 10 -15%
down. 
60 K = 6 k - 9K down.
u will need closing costs 3000 -6000$
u will need set up costs 1000 - 2000$
utilities  (water, sewage, trash, electric, gas/oil) are higher
repairs are higher
taxes are higher
insurances are higher
transportation are higher
yard maintenance is higher
your "electric/fuel assistance"
may not be there or u get in line for it.

u personally do not have any income.

he can quailify for a loan after two full years
earning a good income.

read HOuse buying kit for dummies, e.tysen.
total money make over, dave ramsey
so u can learn b4 u get burned.

keep renting while he learns and u learn.

have seen u/his nightmares.

tro · Answer

he has no job, no credit, nothing to support his application on the mortgage---as far as he is concerned the lender very likely will not consider him
as for your position, SSDI is not like wages or a self employment business and probably will not be considered as well
buying something together without being married is a VERY iffy situation, even married couples have problems but unmarried makes it worse for courts to determine equitabily

Kini · Answer

You cant get financing for a home on minimum wage job and your income of SSDI is not counted.

You'd better consider renting for a few years until  you both have credit and a better income.

? · Answer

If he isn't working, and you don't work, no loan.  If you have the assets to buy a home, then your discounted utilities, etc will end - especially if you get married.

He has no credit = no loan.

Not happening.

$5K down, your payment would be about $500 or so, you are forgetting about property taxes, insurance, and PMI.

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Buying a home with SSDI?

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