Disability Income and Mortgage Qualification

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Disability Income and Mortgage Qualification

Disability income can often be used to qualify for a mortgage.

The borrower does not necessarily need employment income if eligible disability benefits provide enough stable income to support the proposed housing payment and other monthly obligations.

Potentially acceptable disability income includes:

Social Security Disability Insurance
Supplemental Security Income
Employer-sponsored long-term disability benefits
Private disability-insurance payments
VA disability compensation
Certain government disability benefits
Workers’ compensation expected to continue
Short-term disability transitioning into long-term benefits

The underwriting requirements depend on the source of the income.

The lender may need to determine:

Who pays the benefit
The current payment amount
How frequently it is received
Whether the benefit is short-term or long-term
Whether a contractual expiration or reduction applies
Whether the income is taxable
Whether it will continue as required
Whether the borrower will receive a payment by the first mortgage payment date

The medical condition itself is generally not the lender’s focus.

Mortgage underwriting should evaluate the documented benefit—not require the borrower to prove the severity of the disability or predict a future medical outcome.

Can Disability Income Be Used for a Mortgage?

Yes.

Eligible disability income may be used with several mortgage programs, including:

Conventional loans
FHA loans
VA loans
USDA loans
Jumbo mortgages
Portfolio loans

Disability income may be the borrower’s only qualifying income or may be combined with other acceptable sources.

For example, a borrower might qualify using:

Long-term disability benefits
A spouse’s employment income
Social Security
VA disability compensation
Pension income
Retirement-account distributions
Interest and dividend income
Rental income

Each source must be documented and calculated according to the selected mortgage program.

Borrowers combining multiple nonemployment sources should also review What Income Can I Use to Qualify for a Mortgage?

The Type of Disability Income Matters

“Disability income” is a broad description rather than one single underwriting category.

The most common categories are:

Social Security Disability Insurance
Supplemental Security Income
Private long-term disability insurance
Employer-sponsored disability benefits
Short-term disability benefits
VA disability compensation
Workers’ compensation
State or municipal disability retirement

These benefits do not all follow the same underwriting rules.

For example, Social Security disability income is evaluated under Social Security guidelines. A private long-term disability policy is evaluated according to the policy or benefits statement. VA disability compensation follows the applicable VA-benefit and mortgage-program requirements.

Correctly identifying the income source is the first step.

Social Security Disability Insurance

Social Security Disability Insurance, commonly called SSDI, is generally based on the recipient’s work record.

SSDI should not be confused with:

Supplemental Security Income
Private disability insurance
Employer-sponsored disability coverage
VA disability compensation
Workers’ compensation
Disability retirement from a pension plan

For conventional mortgage qualification, the lender may document SSDI using items such as:

An SSA award letter
An SSA-1099
Federal income tax returns or tax transcripts
Proof of current receipt

Under Fannie Mae’s current Social Security income guidelines, no minimum receipt history is required.

When the borrower receives long-term Social Security disability based on the borrower’s own work record, the lender generally does not need to document three-year continuance unless there is a specific reason to believe the income may not continue.

A routine or pending medical eligibility review is not, by itself, evidence that the benefit will end.

For a complete explanation of Social Security benefits, see Social Security Income and Mortgage Qualification.

Supplemental Security Income

Supplemental Security Income, or SSI, is a needs-based benefit for eligible people who are aged, blind, or disabled and have limited income and financial resources.

SSI differs from SSDI because it is not based on the recipient’s previous employment record.

Depending on the loan program, the lender may request:

An SSA award letter
Evidence of current receipt
Bank statements
Documentation supporting required continuance

Under Fannie Mae’s guidelines, SSI generally requires both an SSA award letter and proof of current receipt.

Because SSI eligibility may depend on the recipient’s financial circumstances, the exact benefit documentation should be reviewed before the income is included in the mortgage application.

Private Long-Term Disability Income

A borrower may receive long-term disability benefits from:

A private insurance policy
An employer-sponsored insurance plan
A former employer
A union benefit plan
Another qualified benefit provider

This income is evaluated separately from Social Security disability.

Under Fannie Mae’s current long-term disability requirements, the lender must obtain a disability policy or benefits statement from the:

Insurance company
Employer
Benefits administrator
Other qualified independent payer

The documentation should establish:

The borrower’s current eligibility
The benefit amount
Payment frequency
Any contractual termination date
Any contractual modification or reduction date

The lender must also document that the borrower will receive at least one disability payment on or before the first payment due date of the mortgage.

Employer-Sponsored Disability Benefits

An employer may provide disability benefits directly or through an insurance company.

The underwriter may need to determine:

Whether the borrower remains employed
Whether the employer or insurer pays the benefit
Whether the payment is short-term or long-term
Whether the benefit changes after a waiting period
Whether the benefit ends upon termination of employment
Whether the payment converts to another form of coverage
Whether taxes are withheld

An employment verification alone may not establish all of these details.

The lender may need the actual disability policy, benefits statement, or documentation from the plan administrator.

VA Disability Compensation

VA disability compensation may generally be used as qualifying income when properly documented.

Possible documents include:

VA benefits award letter
Current benefits statement
Bank statements showing deposits
Other documentation required by the loan program

VA disability compensation is generally nontaxable. When the mortgage program permits it, the lender may be able to gross up the income for qualification.

A veteran may combine VA disability income with:

Military retirement
Social Security disability
Civilian employment
Pension income
Spousal income
Rental income
Retirement-account distributions

The lender should identify each benefit separately because the tax treatment and continuance requirements may differ.

For more information, see VA Disability Income and Mortgage Qualification and Military Income and Mortgage Qualification.

Disability Retirement Income

Some employees retire through a disability retirement program rather than receiving benefits from a traditional disability policy.

Examples may include benefits from:

A government pension
A teacher retirement system
A law-enforcement retirement system
A firefighter pension
A military retirement plan
A union pension
A private employer retirement plan

The benefit may initially be considered disability income and later convert into retirement income.

The lender should determine:

The current payment
Whether the benefit is permanent
Whether the amount changes at retirement age
Whether it converts to a standard pension
Whether a temporary supplement will end
Whether the borrower must periodically maintain eligibility

If the payment will decrease within the required underwriting period, the lender may need to qualify the borrower using the lower future amount.

Related guidance is available in Retirement Income and Mortgage Qualification.

Short-Term Disability Income

Short-term disability benefits require a different analysis from long-term disability income.

Short-term disability may be paid while a borrower is temporarily unable to work because of:

An injury
Surgery
Illness
Pregnancy
Childbirth
Another approved medical leave

The borrower may be expected to:

Return to work
Transition into long-term disability
Use paid leave
Receive reduced employment income temporarily

If the borrower is expected to return to employment, the income may be evaluated under temporary-leave guidelines rather than permanent disability-income requirements.

The lender may need:

The borrower’s written confirmation of intent to return
The employer’s confirmation of the approved leave period
The expected return-to-work date
The borrower’s regular employment income
The amount of temporary disability benefits
Available liquid reserves
Evidence of current receipt

See Temporary Leave and Mortgage Qualification and Maternity Leave and Mortgage Approval for a more detailed explanation.

Short-Term Disability Converting to Long-Term Disability

Some disability plans begin with a higher short-term benefit and later convert to a lower long-term payment.

This distinction can materially affect mortgage approval.

For example:

Current short-term disability benefit: $7,000 per month
Future long-term disability benefit: $4,500 per month
Conversion date: Six months after closing

Even though the borrower currently receives $7,000, the lender may need to use the lower $4,500 amount because that is the income expected to continue.

Fannie Mae specifically requires the lower long-term amount to be used when current short-term disability payments will decrease after converting to long-term benefits within the next three years.

The lender should not qualify the borrower using a temporary payment that is already scheduled to decline.

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Is a Minimum Disability-Income History Required?

Fannie Mae does not require a minimum history for qualifying long-term disability income.

That means a borrower may not need to receive the benefit for one or two years before using it.

However, the lender must still establish:

Current eligibility
The payment amount
Payment frequency
Any scheduled expiration or modification
Receipt of at least one payment by the first mortgage payment date

“No minimum history” does not mean that an anticipated insurance claim can be used before it is approved.

The borrower generally needs documentation from the benefits payer establishing that the benefit is active and payable.

Can Future Disability Income Be Used?

Long-term disability income may potentially be used before the borrower receives the first payment if the benefit has been approved and the lender can document that at least one payment will be received on or before the first mortgage payment due date.

For example:

Mortgage closes on September 15
First mortgage payment is due November 1
Approved long-term disability payment begins October 1

The income may potentially be used if the benefits statement establishes the amount, eligibility, frequency, and applicable continuance.

A pending claim with no final approval or confirmed payment amount is different.

The lender generally cannot qualify the borrower based only on an estimate of what the insurance company might approve.

How Long Must Disability Income Continue?

The answer depends on the income source and whether the benefit has a defined termination or modification date.

For Fannie Mae long-term disability income, the lender generally does not need to verify continuance unless there is reason to believe the income may not continue.

Important points include:

A routine reevaluation of disability eligibility does not automatically mean the income is likely to stop.
A defined termination date may require additional analysis.
A scheduled reduction may require the lender to use the lower amount.
A temporary benefit may need to continue for at least three years if that standard applies to the specific income.
The disability policy or benefits statement should control the analysis.

A lender is allowed to evaluate the probable continuance of income. That does not mean it should demand unnecessary details about the borrower’s medical diagnosis.

Can a Lender Ask About the Borrower’s Medical Condition?

Mortgage lenders need to document the income, but they generally should not ask borrowers to prove the nature or severity of their disability when agency documentation already establishes an eligible benefit.

The Consumer Financial Protection Bureau’s disability-income guidance warns that fair-lending concerns can arise when lenders require documentation beyond applicable agency or secondary-market standards, such as:

Details about the nature of the disability
A physician’s statement predicting how long the disability will last
Additional requirements not imposed on applicants using other income sources

The lender may legitimately determine:

The amount of the income
Its frequency
Its current status
Its probable continuance
Any contractual expiration or reduction

Those questions concern the benefit.

They are different from asking the borrower to disclose unnecessary medical records or obtain a doctor’s prediction about recovery.

A Medical Review Is Not an Automatic Expiration Date

Many disability programs periodically reevaluate eligibility.

A future review does not necessarily mean the benefit has a defined expiration date.

Under Fannie Mae’s current long-term disability guidelines, reevaluation of benefits is not considered a reason to believe the income will not continue.

Likewise, a pending or routine Social Security disability review should not automatically cause the income to be rejected.

The underwriter should rely on the benefit documentation and applicable guidelines rather than assuming that every reevaluation will terminate the income.

How Disability Income Is Calculated

The lender usually begins with the documented monthly benefit.

If payments are made:

Weekly, the lender may convert them to a monthly equivalent
Biweekly, the lender may apply an appropriate monthly conversion
Semimonthly, the lender may multiply the payment by two
Annually, the lender may divide the benefit by 12
Monthly, the documented monthly amount may generally be used directly

The precise conversion method depends on the loan program.

The lender should also determine whether:

The stated amount is gross or net
Taxes are withheld
Insurance premiums are deducted
A repayment is being withheld
The payment is scheduled to change
Any portion is nontaxable

Gross Disability Benefit Versus Net Deposit

A borrower’s bank deposit may be lower than the benefit shown on the award or policy statement.

Possible deductions include:

Federal income tax withholding
Insurance premiums
Benefit overpayment recovery
Other authorized deductions

For example:

Gross disability benefit: $5,000
Federal withholding: $500
Insurance deduction: $100
Net bank deposit: $4,400

The lender may be able to use the eligible gross benefit rather than limiting the income to the net deposit.

However, mandatory repayment obligations or scheduled benefit reductions may require separate treatment.

The benefits statement allows the underwriter to reconcile the gross benefit with the actual deposit.

Is Disability Income Taxable?

The tax treatment of disability income depends on the source and how the coverage was funded.

Income may be:

Fully taxable
Partially taxable
Entirely nontaxable

Factors may include:

Whether the borrower paid the insurance premiums
Whether premiums were paid with after-tax dollars
Whether the employer paid the premiums
The type of government benefit
The specific disability program
The borrower’s overall tax circumstances

VA disability compensation is generally nontaxable.

Social Security disability income may be taxable or nontaxable depending on the borrower’s financial circumstances.

Private disability benefits may have different tax treatment depending on how the policy premiums were paid.

The lender should not assume the tax treatment without appropriate documentation.

Can Disability Income Be Grossed Up?

Verified nontaxable disability income may be increased—or grossed up—for mortgage qualification when permitted by the selected program.

Grossing up recognizes that a dollar of nontaxable income provides more usable cash flow than a dollar of taxable income.

Depending on the mortgage program, documentation may include:

Federal income tax returns
Tax transcripts
An award letter identifying nontaxable income
The insurance policy
A benefits statement
Other evidence of tax treatment

Fannie Mae generally permits verified nontaxable income to be increased by 25% when the lender documents both the nontaxable nature of the income and its required continuance.

For example:

Documented nontaxable disability income: $4,000 per month
Potential 25% gross-up: $1,000
Potential qualifying income: $5,000 per month

This is only an illustration. The actual calculation depends on the selected loan program and supporting documentation.

See Nontaxable Income and Mortgage Qualification before applying a gross-up.

Disability Income and the Debt-to-Income Ratio

Eligible disability income is included in the income side of the borrower’s debt-to-income calculation.

The lender compares qualifying income with monthly obligations such as:

Proposed mortgage principal and interest
Property taxes
Homeowners insurance
Flood insurance
HOA dues
Car payments
Credit-card minimum payments
Student loans
Personal loans
Other mortgages
Alimony or support obligations
Certain repayment agreements

Assume a borrower has:

$5,000 in eligible disability income
$2,000 in eligible spousal employment income
$7,000 in total qualifying monthly income

The lender compares that income with the borrower’s qualifying debts and proposed housing expense.

An eligible gross-up may increase qualifying income, but it does not reduce the actual monthly debts.

For a complete explanation, see Mortgage Debt-to-Income Ratio Explained.

Can a Spouse’s Income Be Combined With Disability Income?

Yes, when the spouse is also a borrower and the income independently satisfies the applicable guidelines.

A household might qualify using:

One borrower’s long-term disability income
The other borrower’s salary
Social Security income
Pension income
Rental income
Another acceptable source

The lender documents each source separately and combines the eligible amounts.

A spouse’s earnings cannot ordinarily be included simply because the borrowers are married. The spouse generally needs to be obligated on the mortgage when that income is needed for qualification.

Disability Income and Employment Income

Some borrowers continue working while receiving disability benefits.

Whether both sources can be used depends on:

The terms of the disability policy
Whether employment affects eligibility
The stability of the employment income
Whether the borrower’s work hours are restricted
Whether one income source will reduce the other
Whether the benefit is temporary
Whether employment will continue

The lender should not assume that employment and disability income are incompatible.

However, if the policy states that benefits decrease when earnings increase, the underwriter must avoid overstating total income.

Borrowers with additional work income may review Part-Time and Second-Job Income for a Mortgage.

Disability Income and Workers’ Compensation

Workers’ compensation may provide income after a job-related injury or illness.

The mortgage analysis may consider:

The award amount
Payment frequency
Current receipt
Expected duration
Whether the benefit is temporary or permanent
Whether a settlement will replace the monthly payments
Whether the borrower is expected to return to work

A temporary workers’ compensation benefit scheduled to end in several months may not support long-term qualification.

A permanent benefit with acceptable documentation may receive different treatment.

The lender should obtain the award or benefit documentation rather than relying only on bank deposits.

Disability Income and a Pending Lawsuit

A pending lawsuit or expected settlement is not the same as established disability income.

The lender generally cannot use speculative proceeds from:

A personal-injury lawsuit
A workers’ compensation claim that has not been approved
A disability appeal
A pending insurance claim
A proposed settlement

If a settlement has been finalized and converted into documented recurring payments, it may potentially be evaluated under another income category, such as structured-settlement or notes-receivable income.

The lender must document an enforceable payment stream rather than a possible future result.

Returning to Work During the Mortgage Process

A borrower may apply while receiving disability benefits and then return to employment before closing.

That change can affect qualification.

The lender may need to determine:

Whether disability payments will stop
Whether employment has resumed
The borrower’s return-to-work date
Current employment income
Whether reduced hours apply
Whether both income sources may continue
Whether a new paystub is available
Whether the employer confirms active status

The borrower should disclose the change immediately.

If the disability benefit ends and employment income has not been properly reestablished, the lender may need to recalculate the file before closing.

Going on Disability During the Mortgage Process

A borrower may also become unable to work after preapproval.

The original approval may have been based on regular employment income that is no longer being received.

The lender may then need:

Employer leave documentation
Short-term disability approval
Long-term disability approval
Payment information
Expected return date
Available financial reserves
Updated income calculations

A preapproval does not permanently preserve the original income calculation when the borrower’s circumstances change.

The loan may still be approved, but it must be underwritten using the income expected to be available after closing.

Conventional Loan Requirements

Conventional loans generally allow eligible disability income.

The applicable analysis depends on whether the income comes from:

Social Security
A private long-term disability policy
Employer benefits
Temporary leave
VA compensation
Another government program

Fannie Mae and Freddie Mac requirements are not identical in every circumstance, and individual lenders may impose overlays.

A borrower declined by one lender may have options with another lender if the first lender misclassified the income or applied an unnecessary requirement.

See Why One Mortgage Lender Says No—and Another Says Yes for a broader explanation.

FHA Loan Requirements

FHA loans may permit qualifying disability income when it is properly documented and expected to continue according to FHA requirements.

FHA guidance generally does not support requiring unnecessary medical documentation to prove that Social Security disability will continue when the benefit documentation does not show an expiration.

The lender may evaluate:

The award or benefit document
Current receipt
The stated expiration, if any
Nontaxable-income treatment
The borrower’s debt-to-income ratio
Other FHA eligibility requirements

FHA financing may provide flexibility for borrowers with limited down payments or credit challenges, but the entire loan structure must still qualify.

VA Loan Requirements

VA loans may use eligible disability income, including:

VA disability compensation
Social Security disability
Private long-term disability income
Other acceptable disability benefits

VA underwriting considers both the debt-to-income ratio and residual income.

For veterans receiving VA disability compensation, the lender should also verify whether the borrower is exempt from the VA funding fee.

The funding-fee exemption is separate from whether the disability income is needed for qualification.

USDA Loan Requirements

USDA financing may allow eligible disability income, subject to the program’s documentation, continuance, property, and household-income requirements.

USDA may distinguish between:

Income used for repayment qualification
Income counted toward household eligibility limits
Income received by a non-borrowing household member
Income excluded under specific program rules

The lender must evaluate both repayment income and annual household income.

Jumbo and Portfolio Loan Requirements

Jumbo and portfolio lenders may accept disability income, but requirements can vary significantly.

Differences may include:

Continuance standards
Documentation requirements
Nontaxable-income treatment
Maximum debt-to-income ratios
Reserve requirements
Asset-depletion options
Treatment of multiple benefit sources

This can be particularly important for borrowers with high-value properties, substantial assets, or complex income.

Documents a Borrower May Need

Depending on the disability-income source, the lender may request:

Social Security award letter
SSA-1099
Proof of Social Security deposits
Private disability-insurance policy
Current benefits statement
Employer disability-plan documentation
Letter from the insurance company or benefits administrator
VA disability award letter
Workers’ compensation award
Bank statements showing receipt
Tax returns or transcripts when needed
Evidence of taxable or nontaxable treatment
Documentation of scheduled payment changes
Documentation of a transition from short-term to long-term benefits
Temporary-leave documentation
Return-to-work documentation when applicable

A doctor’s letter describing the medical condition should not be treated as the standard proof of disability-income continuance when the applicable benefit documentation is sufficient.

Real Disability-Income Mortgage Scenarios

Private Long-Term Disability With No Expiration Date

A borrower receives $6,000 per month through an employer-sponsored long-term disability policy.

The benefits statement confirms:

Current eligibility
Monthly payment amount
No contractual termination date
No scheduled reduction

The lender may use the documented monthly amount without requiring a one-year or two-year receipt history.

SSDI With a Pending Medical Review

A borrower receives SSDI based on the borrower’s own work record.

The SSA documentation does not show a defined expiration date, but the borrower is subject to a future routine eligibility review.

The review alone should not be treated as evidence that the income will stop.

The lender should evaluate the benefit according to the applicable Social Security requirements.

Short-Term Benefit Will Decrease

A borrower currently receives $8,000 per month in short-term disability income.

The policy confirms that the payment will convert to a $5,000 monthly long-term benefit after six months.

Because the decrease will occur within three years, the lender may need to qualify the borrower using $5,000 rather than the current $8,000 payment.

VA Disability and Military Retirement

A retired veteran receives:

$3,500 in military retirement
$2,000 in VA disability compensation

The lender documents both sources separately.

The VA disability income may receive eligible nontaxable treatment, while the military retirement income may be taxable.

Disability Benefit Begins Before the First Payment

A borrower has an approved long-term disability claim but has not received the first deposit at closing.

The benefits statement confirms that the first payment will arrive before the first mortgage payment is due.

The income may potentially be used without waiting several months to establish a receipt history.

Borrower Plans to Return to Work

A borrower is temporarily receiving disability benefits following surgery and plans to return to the same job.

The lender evaluates the file under temporary-leave guidelines using:

The approved leave period
The expected return date
Regular employment income
Temporary benefit income
Available reserves

This is different from qualifying solely with permanent long-term disability income.

Benefit Paid Through a Personal Business

A self-employed borrower claims that the business is continuing salary payments during a disability.

Because the borrower controls the business, the payments may not automatically qualify as independent disability benefits.

The lender may need to analyze:

Business tax returns
Current business operations
Available liquidity
Whether the payment is an actual insurance benefit
Whether the business can continue supporting it

A payment created by the borrower’s own company is different from an enforceable benefit paid by an independent insurance company.

Common Problems That Delay Approval

Disability income may delay underwriting when:

The benefit type is unclear
The borrower provides only bank statements
The policy is missing
The benefits statement is outdated
A pending claim has not been approved
The payment is short-term
A future reduction has not been considered
The income’s tax treatment is undocumented
The benefit belongs to a dependent
The borrower returns to work during underwriting
The lender requests unnecessary medical evidence
The borrower assumes SSDI and SSI are the same
The benefit is scheduled to expire
The bank deposit does not match the award amount

Most of these issues can be addressed by reviewing the benefit documentation before the loan is submitted.

Common Misconceptions

“Disability Income Cannot Be Used for a Mortgage.”

Eligible disability income can generally be used when it is properly documented and satisfies the selected loan program’s requirements.

“I Need a Two-Year History.”

Fannie Mae does not require a minimum history for eligible long-term disability income.

The lender still needs proof of eligibility, amount, frequency, and any applicable expiration or modification.

“My Doctor Must Confirm That I Will Stay Disabled.”

The lender generally should evaluate the benefit documentation rather than requiring unnecessary medical details or a physician’s prediction.

“A Future Disability Review Means the Income Will End.”

A routine reevaluation is not automatically evidence that the benefit will terminate.

“The Lender Must Use My Current Short-Term Payment.”

If the payment is scheduled to convert to a lower long-term benefit within three years, the lender may need to use the lower amount.

“All Disability Income Is Nontaxable.”

Tax treatment depends on the benefit source and, for private coverage, potentially on how the premiums were paid.

“Every Lender Will Calculate the Income the Same Way.”

Agency guidelines, lender overlays, documentation interpretations, and gross-up rules can produce different results.

Real Lender Perspective

Disability-income files are often overcomplicated because the income is placed into the wrong category.

SSDI is not underwritten exactly like private disability insurance.

Private long-term disability is not the same as temporary medical leave.

VA disability compensation is not the same as military retirement.

Workers’ compensation is not automatically permanent income.

Once the correct category is identified, the underwriting questions become much clearer:

Is the benefit approved?
What is the documented amount?
When will payments begin?
Is a reduction scheduled?
Does the policy show an expiration?
Is any portion nontaxable?
Will another income source replace it?

A strong mortgage strategy focuses on those financial facts without turning the underwriting process into an unnecessary investigation of the borrower’s medical condition.

Who This Guide Is For

This guide may be helpful for:

SSDI recipients
SSI recipients
Veterans receiving disability compensation
Borrowers with private disability insurance
Employees receiving employer-sponsored disability benefits
Borrowers transitioning from short-term to long-term disability
Workers’ compensation recipients
Borrowers temporarily away from work
Disabled retirees
Surviving spouses
Borrowers combining disability and employment income
Families helping a disabled relative purchase a home
Texas homebuyers using nontaxable benefits

Final Thoughts

Disability income can provide a stable foundation for mortgage qualification.

The key is correctly identifying the benefit and documenting:

Current eligibility
Payment amount
Payment frequency
Start date
Any expiration date
Any scheduled reduction
Taxable or nontaxable treatment
Required continuance

Long-term disability income may not require an established receipt history. A benefit beginning before the first mortgage payment date may also be usable when it has been formally approved and properly documented.

The lender should evaluate the benefit according to the mortgage guidelines—not make assumptions based on the borrower’s disability or demand unnecessary medical information.

When disability income is understood and structured correctly, the borrower may have access to the same conventional, FHA, VA, USDA, jumbo, and portfolio mortgage options available to borrowers using other acceptable income sources.