Can you get financing for a house if you are on long term disability?

My sister is on long term disability from her job, she wants to move to a smaller, less expensive house. I think she gets roughly 25k on disability, and has roughly 30k equity in her home. Anyone here know if you can get a home loan if you aren't employed, but have income? she does not have good credit due to a bankruptcy about 3-4 years ago.

any thoughts would be helpful. She is trying to get my father to help with some creative accounting but it's doubtful he will do anything and she really needs to move to get her costs down.

i'm going to bed and hoping someone that knows something about this sees it.

than the disability being her income.

if she can document her income and can afford what she's trying to buy, then the income should be ok. But she may get stuck with a higher interest rate because of the bankruptcy.

If you dad can cosign in some way that would be the best. I'd just start calling places and see what the general consensus is and take it from there.

good luck.

They have access to many different lenders and perhaps they can find something that works.
It will also depend on her credit score.
Perhaps you may find owner financing depending on your housing market.
Good Luck

Someone on long term disability should not have a problem, generally. if her income is sufficient to cover her payments, one in your sister's situation would normally be fine. In fact it is illegal for lenders to discriminate on the basis of disability (or anything else, for that matter)

Your sister's specific problem will be that she has recently declared bankruptcy. There are alot of questions I'd have to ask to go into lots of detail with my answer, but suffice it to say that she may not be able to get any kind of mortgage that she wants. Someone will lend her money, but the rate that they will have to charge to cover their risk will be very high.

Hopefully she will be able to get creative- do the financing in a spouse's name for example. Other than a spouse, I generally do not reccomend that anyone else 'co-sign' for her. I've seen too many situations in which someone screwed up thier own credit, got a family member to 'cosign' & then the helpful family member ended up with bad credit as well when the joint loan was paid late. In the long term, the most important thing will be for her to get the bankruptcy discharged & then NEVER make another payment late again . . . after a few years (like 5)of doing that she will become 'bankable' again & not have to go into the semi-shady sub-prime lending market.

I don't know what your local real estate market is like, but if she looks for the right seller & her 30k would be a good down payment percentage, another option would be to find a seller who would be willing to do owner financing on a home

Best of luck to her, I hope she gets better soon

I think she may be ok as she's looking at pretty cheap houses, and her bankruptcy was 3+ year ago.


thanks again.