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5.1. Fulfilling the American Dream: A Guide for Disabled Homebuyers
Fulfilling the American Dream: A Guide for Disabled Homebuyers
Having a home to call one's own is a giant milestone millions of Americans strive to achieve. Becoming a homeowner brings with it a sense of pride and accomplishment, but the process of becoming one can be intimidating. This is especially true for those with physical or emotional disabilities wishing to attain homeownership.
In fact, the federal government has established several laws and administrations for the sole purpose of protecting your rights as a disabled homebuyer, no matter the nature of your disability. This guide is designed to be a tool to assist those fearing their disability may become a factor in making the home buying experience more cumbersome. You will find information on what your rights are, resources to aid you in understanding the procedures involved in acquiring a home, and advice on how to proceed if you feel your rights have been dishonored. Additionally, you will find resources to make the most of the opportunities available to you for purchasing a home, whether your plans are to purchase your first house or to relocate from your current residence to your dream home.
Your Rights as a Homebuyer
For the purposes of enforcing nondiscrimination laws, the government defines a disability as a physical or mental condition that impacts a person's ability to function in one or more major life activities, such as walking, driving or even breathing. The following resources provide valuable information on the rules and organizations that are designed to ensure that your rights as a homebuyer are clearly defined and protected under federal law.
Under the Fair Housing Act, discrimination against a potential homebuyer based on his or her disability is illegal. This website offers information on how applicants with physical or emotional disabilities have the same rights to the home buying process and the purchase of a residence as someone who does not.
The Office of Fair Housing and Equal Opportunity (FHEO) was established to enforce the rights of any homebuyer, including those who are physically or mentally disabled. They provide financial assistance to state and local agencies that have a proven record of enforcing fair housing practices to further protect homebuyers from discrimination.
Regulation B, which was developed by the Bureau of Consumer Financial Protection to support the Equal Credit Opportunity Act, is designed to grant the right to credit lending regardless of factors such as race, age, or disability status. Regulation B also provides the rights of applicants to receive information on the status changes of an application and criteria used to come to a determination of the approval or decline of a loan.
A housing provider is prohibited from creating extra criteria for a potential homebuyer to purchase a home. For example, a seller may not refuse to sell a dwelling to someone with a disability, nor can they tack on extra fees or extend the waiting period for the purchase of the home.
You have a right to sturdy, accessible housing, even if you are physically impaired. The Fair Housing Act requires that any multi-family housing built after March 13, 1991, include certain features ensuring accessibility and safety for residents of the home, including those who have a physical disability. These attributes include accessible routes and entryways into the home, such as ramps and doorways to accommodate wheelchairs; reinforced bathroom walls for the secure installation of hand bars; and electrical outlets and switches located in reachable areas for those who are dependent on a wheelchair.
Responsibilities of a Mortgage Lender to a Homebuyer
When buying a home, many people choose to borrow a majority of the funds from a lending institution, such as a bank or credit union, and make an initial down payment for a percentage of the purchase price with money they have saved on their own. There are three basic steps that will occur when you inquire about or apply for a mortgage:
- The lender will run a credit check.
- The lender will determine how much you are eligible to borrow.
- The lender will assist you in applying for the loan, should you choose to do so.
The following resources provide helpful information on what the mortgage process involves, and what the mortgage lender's responsibilities are to uphold your rights as a disabled homebuyer.
A lender cannot discourage an applicant from applying for a loan based on a disability, nor can they alter the terms or conditions of a loan for this reason (such as increasing an interest rate or requested down payment amount). The lender may also not deny a loan for this reason alone.
Section 504 of the United States Department of Housing and Urban Development (HUD) states that no one should be discriminated against simply due to the fact that he or she has a mental or physical disability. This includes a person's right to apply for a loan, the documentation requested from an individual in the loan application process, and the decision of approving or declining a loan application.
A lender must consider any public assistance income the same way they would consider any other source of income. The lender has the right to request information on any assistance from the Social Security Administration if you ask for it to be considered as part of your income on your loan application. However, unless the information provided by the Social Security Administration identifies an exact date when your benefit will expire, the lender must assume that the benefit will be continuous.
The Fair Housing Act prohibits acts that discriminate against disabled homebuyers, including the refusal to sell or negotiate for housing or be dishonest about available housing. This resource provides information on what kind of housing the FHA covers, and the actions of a seller that are restricted by law.