How to Get a Loan on Disability

The Social Security Administration provides disabled people with monthly income. If Social Security disability benefits are your sole or main source of income, you can still qualify for loans such as personal loans and mortgages. Lenders consider people on disability low-income borrowers so potential borrowers must be able to prove they can afford to repay the loan and, often, need higher credit scores to qualify. However, the basic application process for people on disability is no different from any other application.

Step 1

Get a credit report from Experian, TransUnion and Equifax. Ensure all information on each of the reports is accurate and dispute any inaccurate information because lenders use the data to determine your creditworthiness, loan amount and interest rate. Get one free report per year from these reporting agencies at the government-run website AnnualCreditReport.com or, if you have already accessed your free report, obtain reports for a fee from each of the credit reporting agencies' websites.

Step 2

Get your financial documents together. Most lenders want to see proof of three years of steady disability payments from the SSA. Also include proof of other social program payments, any pay stubs, bank statements and your most recent tax returns.

Step 3

Call lenders in your area to ask about the application process, repayment options and any special loan programs available to disabled borrowers.

Step 4

Pick a lender and visit in person to fill out an application. Ask for a loan amount and repayment schedule that will allow you to make payments and still pay household expenses with your disability income. Give the loan officer your documentation so he can verify the information you gave and process the application.

Step 5

Wait for the lender to contact you with approval or denial of your application. If the lender approves you, it will send you a check or deposit the funds into your bank account.

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