Short answer
Yes. Disability income can be used to qualify for a mortgage. For conventional loans, Fannie Mae counts long-term disability income with no minimum history, and lenders don't have to verify it will continue unless they have a reason to think it won't. Social Security disability is counted under Fannie Mae's Social Security income rules. Lenders may ask for proof of the benefit, but not about the nature of your disability.
How is long-term disability income counted?
The lender gets a copy of your disability policy or a benefits statement from the insurer or employer showing that you're eligible, the amount and how often it's paid, and any set end or change date. You need to receive at least one payment by your first mortgage payment. A scheduled re-evaluation of your benefits isn't, by itself, a reason to treat the income as ending.
If you're on short-term disability that will drop when it converts to long-term benefits, the lender qualifies you on the long-term amount.
What about Social Security disability (SSDI or SSI)?
Social Security benefits are counted under their own rules, usually with an award letter or a recent benefit statement. Benefits that aren't taxed can often be grossed up when the lender figures your qualifying income. See how Social Security is counted.
How does FHA treat disability income?
HUD's Handbook 4000.1 counts disability benefits from Social Security, the VA, other public agencies or a private insurer. The lender needs your award or benefits letter plus tax returns or a recent bank statement showing the deposits. Income that will end within three years of your application can't be used, but a letter with no end date counts as likely to continue, and a pending medical review isn't a reason to doubt it. HUD also says a lender may never ask about the nature of your disability or your medical condition.
What are my rights as a borrower?
Federal fair lending law (the Equal Credit Opportunity Act) bars lenders from discriminating because your income comes from a public assistance program, and the Fair Housing Act bars discrimination based on disability. A lender can ask for documents that show the amount and how long the income will last, but it shouldn't ask about your medical condition.
Are there New Hampshire tax breaks that can help?
Many towns offer an exemption for homeowners eligible for Social Security disability benefits (RSA 72:37-b), and the state allows a tax deferral in a hardship. See NH property tax relief and deferring NH property taxes.
Sources
- HUD Single Family Housing Policy Handbook 4000.1, Update 18 (August 2026), Disability Benefits (TOTAL)
- Fannie Mae Selling Guide B3-3.4-09, Long-term Disability Income
- CFPB, Regulation B 12 CFR 1002.6, Rules concerning evaluation of applications
Checked November 2, 2026. Rules and dates change, so confirm current details before you rely on them.
General information only, not tax or legal advice. Program availability, eligibility and terms vary by lender and are subject to change and to underwriting approval. Not a commitment to lend.