I want to get a mortgage loan and the bank wants me to get a letter from the Social Security Administration stating that my disability will last at least 3 years into the future. I’ve had disability for 10 years now but they want proof of future disability. I’ve searched for data on this type of statement but found nothing about how to go about getting one. Anybody know anything about this?
Lisa (below) says a letter from my doctor should be enough. I agree. Unfortunately my bank doesn’t.
For one thing, SSA rules only require you will be unable to unable to work for a 12 month consecutive period. They cannot guarantee anyone will still be disabled for 3 years. And that is unrealistic for the bank to require it. There is no way anyone can guarantee there will not be a medical break through 2 or 3 years into the future.
If you have been receiving benefits for 10 years, I assume you have had at least one CDR (Continuing Disability review), since the longest period is 5-7 years. If you have had one, that is the closest thing to SSA saying they are convinced your disability has not improved, and is not expected to improve.
I would call your local office and ask if they could send a statement about your latest CDR. If you haven’t had one for some reason, ask them to send some statement as to why they haven’t conducted one, or when one is scheduled. The 5-7 year review is SSA’s way of saying they do not expect your condition to improve. That’s probably as close to any statement you will get from them.
The problem is, I suspect, that private banks cannot garnish government supplements like SSDI, or SSI. They cannot seize assets from accounts marked as coming from SSDI/SSI. Therefore they do not want to make the loan because they cannot collect if you default.
Yes, that is standard documentation. Just like child support or alimony must have 3 years remaining if you are using it for qualifying income. You can get a letter from your doctor stating that you are permanently disabled. That should be enough.
You should go to a mortgage banker. They should follow FNMA guidelines. Ask up front if a letter will be enough. Good luck.
References :
For one thing, SSA rules only require you will be unable to unable to work for a 12 month consecutive period. They cannot guarantee anyone will still be disabled for 3 years. And that is unrealistic for the bank to require it. There is no way anyone can guarantee there will not be a medical break through 2 or 3 years into the future.
If you have been receiving benefits for 10 years, I assume you have had at least one CDR (Continuing Disability review), since the longest period is 5-7 years. If you have had one, that is the closest thing to SSA saying they are convinced your disability has not improved, and is not expected to improve.
I would call your local office and ask if they could send a statement about your latest CDR. If you haven’t had one for some reason, ask them to send some statement as to why they haven’t conducted one, or when one is scheduled. The 5-7 year review is SSA’s way of saying they do not expect your condition to improve. That’s probably as close to any statement you will get from them.
The problem is, I suspect, that private banks cannot garnish government supplements like SSDI, or SSI. They cannot seize assets from accounts marked as coming from SSDI/SSI. Therefore they do not want to make the loan because they cannot collect if you default.
References :