Ask Experts Questions for FREE Help !
Ask
    nutthouse's Avatar
    nutthouse Posts: 12, Reputation: 2
    New Member
    		  
    #1

    Jan 31, 2008, 04:10 PM
    Home eqity loan with disability income
    I live in NC. I own my home, with no mortgage. I'm considering a home equity loan to make home improvements. My familys' only source of income is social security disability. How would this affect my chances at a loan?
    twinkiedooter's Avatar
    twinkiedooter Posts: 12,172, Reputation: 1054
    Uber Member
    		  
    #2

    Jan 31, 2008, 04:23 PM
    This is not the best of scenerios if you ask me. You are just setting yourself up for a foreclosure down the road. Why jeapordise your home for the sake of improvements?
    excon's Avatar
    excon Posts: 21,482, Reputation: 2992
    Uber Member
    		  
    #3

    Jan 31, 2008, 04:25 PM
    Hello nut:

    If you're an older person, have you considered a reverse mortgage?

    excon
    Fastfun1's Avatar
    Fastfun1 Posts: 80, Reputation: 11
    Junior Member
    		  
    #4

    Jan 31, 2008, 04:27 PM
    From my experience, the only concern would be the disability. Many lenders wish to see that the SSI will continue for at least the next three years. SSI will not furnish any documentation to support that. However, a letter from your doctor stating that it is in his/her medical opinion that you will be disabled for at least the next three years will typically satisfy underwriting. Furthermore, as your home is free and clear, you are a very low risk borrower, and depending on your credit, may be able to utilize one a variety of niche options, such as a no income/no assets loan (NINA) if that doesn't work out. Lastly, a line of credit may not be your best option. As the home is free and clear, and I assume your not breaking the bank with home improvements, I would explore a low rate first mortgage at short term, maybe 10yrs. Have your lender run a short term first against a HELOC, see which one makes the most sense for you. You should be fine, good luck.
    George_1950's Avatar
    George_1950 Posts: 3,099, Reputation: 236
    Ultra Member
    		  
    #5

    Feb 8, 2008, 09:02 PM
    How much can you afford to pay on a loan each month? Start saving that amount each month in a credit union until you have what you need. Just feel and enjoy your financial strength and sleep well.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Disability income [ 1 Answers ]

I am receiving disability income from an insurance company on which my employer paid the premiums. I know I will have to pay taxes on this income. My question is, "On what form will the insurance company report this income to me". Will it be a 1099?

Disability income [ 7 Answers ]

I was wondering if Disability income is taxable. This income is from social security and not a pension plan or long term payments. And are there any factors that detemine this? Some info that might help. My Wife does not work. And for 2006 I have income with them due to 401K distribution. In 2007 I...

Disability and mortgage loan [ 1 Answers ]

I am 58 and on permanent ssi disability. Can I get a mortgage based on my disability Payment of $2000.00 / mo.

Garnishment of disability income [ 3 Answers ]

Can the courts garnish disability income while I'm off work? I was in an accident and will temporarily be living on disability insurance income.

Disability Income [ 1 Answers ]

Hi, I have been on workers compensation income since November 2004. I purchased a home in February 2005. I have no W2. My dependent is in private school and received 3 hundred toward her tuition for 2005-2006 school year. I have in the past used Turbo Tax. Am I required to file taxes on my...

View more questions Search