1.1. Funding a Home Purchase
Homeownership Voucher Program: This program from the Department of Housing and Urban Development allows people with disabilities to become homeowners through a monthly voucher program. Once approved, vouchers can be used for the mortgage principal and interest, mortgage insurance, real estate taxes and homeowner insurance, and for allowed utilities, routine maintenance costs, and major repairs and replacements.
Participants must be first-time homeowners and not have owned a residence for three years. The home must pass an inspection by the housing authority and an independent home inspector. Individual public housing authorities may or may not offer the program, but they are required to if it's a reasonable accommodation for somebody with a disability. The waiting list for this program varies, so expect a wait after you submit your application. Contact your local housing authority for complete eligibility guidelines and income requirements.
Section 203(k) Insurance Program: This program by the Federal Housing Administration allows homebuyers to finance long-term both the purchase of a home and the cost of its rehabilitation through a single mortgage, or to finance the rehabilitation of an existing home. Rehabilitation costs must be over $5,000, but the total value of the property must remain within the FHA mortgage limit for your area. For more information call 800/225-5342.
Fannie Mae's Community HomeChoice Program: This nation-wide program helps low to moderate income people with disabilities afford homes. Qualified borrowers are offered low down payments, loans with lower debt-to-income requirements and more lenient credit evaluations. For more information visit www.fanniemae.com.
State agencies: Some states offer assistance programs for disabled first-time homebuyers that often feature low-interest loans or below-market interest loans. Searching the Web for your state name plus the term "home buyer assistance" will turn up useful links and contact info.