Can a disabled person get approved for mortgage refinancing?

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You may be a disabled person but still you may be required to refinance your existing mortgage loan so as to enjoy the lower rate prevailing in the market place. In fact, the Federal Laws have put an end to any kind discrimination against the disabled persons while granting the mortgage refinancing appeal. If you meet all the eligibility criteria, you must be approved to refinance your mortgage loan. Your disability should not come in your way of getting the refinancing approval. Instead, if you are a disabled person, you will be treated more favorably and your income will be treated differently than an employed borrower.

You may be temporary or permanently disabled. If you are getting temporary disability income, then you can’t use that income for mortgage qualification. Lenders consider this income as only short term in nature and they do not take this short term income into consideration while granting your refinancing plea. On the contrary, if you are permanently disabled, then the lenders consider this income as long-term in nature and take this income into consideration while granting your mortgage refinancing appeal.

You need to however produce proper documents from the insurance company or the Social Security Administration or both which prove your permanent disability and the income that you receive for your disability. If the lender is satisfied, then this permanent disability income is taken into consideration. In addition to this, if you meet the other eligibility criteria, then you are offered the mortgage refinancing loan.

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Mini Profile  novapink

Joined: 31 Jul 2006
Posts: 1

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Post     Post subject: Refinancing while on disability

I am on disability and my mobile home payments take over half of my monthly checks. I desperately need to refinance in order to lower my monthly payments. Can you point me in the right direction?
Mini Profile  Caron


Joined: 19 Jul 2005
Posts: 1516
Location: florida
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Post     Post subject: RE: Mobile home refinance


Welcome to the forums.

You can refinance and lower your monthly payments. But you should replace your current mortgage with that having a 2% lower rate; otherwise you won't benefit from refinancing. Our resources on Refinance can give you a complete knowledge of the process.

I would also like to mention that in order to pay off the mortgage, you can also use Mortgage Disability Insurance provided you have earlier applied for the policy.




Post     Post subject: Refinancing while on disability

Need to refinance now. Seven months before I was placed on total permanent disability had refinanced my house to a 15 year loan. My monthly payment is $2926. My gross monthly income is now $5200. My home's value is $375,000 at the low end and the low $400,000's at the high. Have tried to survive, but is getting much harder. Any suggestions?
Mini Profile  savior70

Joined: 25 Mar 2009
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Location: Florida
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Post     Post subject:


You can go for a loan modification program. It will lower your monthly payments so you can afford them. Discuss this with your lender and let us know what they have to say.

Post     Post subject:

I have been put on permanent disability from my job. I am getting my disability payments. But that it is not enough to manage the high interest rates on my mortgage along with other necessary expenses. Can you let me know if I can refinance my existing mortgage though I am on disability?
Mini Profile  adonis


Joined: 22 Oct 2005
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Post     Post subject:

You should note here that if your monthly income with your disability payments is high enough so that your total monthly debt, including your new mortgage payment, is less than 36% of your monthly income, you can qualify for a standard refinance.
Procrastination is the enemy of your financial success
Mini Profile  skydendredge

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Joined: 22 Jul 2011
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Post     Post subject:

If you are permanenly disabled, then the income that you earn from Social Security Disability, is factored into your income by the lender while approving your refinancing request. Apart from income, if you meet other criteria, then your request is granted.
hjp sr.


Post     Post subject: disability income refinancing

I am on permanent disability 3 years ss and ssi with a prior bankruptcy 6 years ago. The court did not reafferm the mortgage with citi bank but i have made my payments to them as I agreed to do with citibank. Citybank will not refinance and threaten me not to be late on even 1 payment. I contacted another mortgage co, I was denied for lack of income income disability doesn't count (they said). what can I do. my credit rate is about 700 and I am 1 payment ahead on the house. I have just enough to make payments with no extra for any emergency. What can I do?
Mini Profile  adonis


Joined: 22 Oct 2005
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Post     Post subject:

Hi hjp sr.,

As the court haven't reaffirmed the loan, you're not liable for it personally anymore. Moreover this is one of the reasons why the lender is not refinancing your home loan. If you wish, you can walkaway from the property.

Procrastination is the enemy of your financial success


Post     Post subject: Refinancing while on Social Security Disability

I am on permanent disability and my monthly mortgage payment of $1,000.00 takes most of my income.
My lender said they would refinance
my mortgage but I would have to pay $3,000.00 to do this.
I don't have that kind of money, so I am wondering if I have any
other options open to me.
Mini Profile  jameshogg


Joined: 20 Dec 2005
Posts: 12157
Location: Nevada
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Post     Post subject:

Hi ggs,

I don't think there is any other way apart from refinance. You will have to somehow manage that amount and go for refinancing.

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