Mortgage Community Forums | Forums: Learn from other's experiences | Qualifying for mortgage w/only Soc.Sec.income.
Qualifying for mortgage w/only Soc.Sec.income.
1. Person is 40yrs. old and permanently disabled(kidney failure,1999)but has transplant(2004).
2. Soc. Security income is approx. $1130 per month.
3.Currently living in mobile home,lot rent is $400 monthly.
4. Has no bills,just utilities and approx. $30 monthly co-pay for Rx medications.
5. Mobile home is becoming un-liveable due to mildew,etc;needs to move.
Would he be qualified for a mortgage with only the Soc. Security income?,I will give him down payment,he would need a mortgage for appox. $18,000 to $20,000 to cover balance of sale price,house would be in $25,000 to $30,000 range.
" Would he be qualified for a mortgage with only the Soc. Security income?"
As the social security income is a fixed income he is regularly getting, it will be considered when your friend approaches any lender for the mortgage.
In addition if he goes for a $20,000, 30 yr. fixed mortgage and gets a rate of about 6.5% (depending on his credit score) then as per calculations his monthly mortgage payments will be around $126-$127 and the information you have provided, I think he would be able to afford it.
He owns the mobile home but he will abandon/scrap it,he's looking at getting a small house,also he has no established credit,he lost everything in 1999 with the kidney failure,was left with some medical bills he couldn't pay,he don't know where he stands right now,told him to get the credit report to see where he stands,a mortgage even with all the other related expenses will be considerably less than the $400 just for lot rent he pays now.
Thanks to all for replys.
As far as I know, borrowers can repay only the interest on their home loans using their Social security income. So, it depends on the lender as to whether he will approve a loan considering only the borrower's Social Security Income.