Supplemental Security Income (SSI) is a program administered by the Social Security Administration (SSA) designed to provide financial assistance to individuals who are aged, blind, or disabled and have limited income and resources. One common question among SSI recipients is, “Can I own a house on SSI?” and whether it would affect their eligibility for benefits. Yes, you can own a house on SSI. The SSA does not count the home you live in and the land it is on as a countable asset for SSI eligibility. This means that owning your primary residence will not disqualify you from receiving SSI benefits or reduce the amount you may be entitled to.[1]
This article explores the nuances of property ownership for those on SSI, shedding light on asset limits, exclusions, and considerations.
SSI eligibility is subject to asset limits: $2,000 for an individual and $3,000 for a couple. These limits include cash, bank accounts, stocks, bonds, and potentially other real estate beyond your primary residence. The intent behind these limits is to ensure that SSI supports those who need it most, given their limited financial means.
Significantly, the SSA excludes several key assets from this calculation, most notably the house you live in. This policy recognizes the importance of stable housing in the lives of those who are often the most vulnerable in society. In addition to your primary residence, the SSA excludes:
One Vehicle: Regardless of value, if it is used for transportation for you or a member of your household.
Household Goods and Personal Effects: Items such as furniture, clothing, and personal items are not considered countable assets.
Life Insurance Policies: With a combined face value of $1,500 or less.
Burial Spaces and Funds: For you or your immediate family, up to a certain limit.
These exclusions reflect a comprehensive approach to ensuring that SSI recipients can maintain a basic standard of living without jeopardizing their benefits.
“SSI recipients can own their primary residence without impacting benefits.”
Understanding the nuances between sole/shared ownership and equitable ownership is vital. For SSI purposes, proving ownership is critical to qualify for the home exclusion. Documents such as property deeds, tax assessments, and mortgage statements can be used to establish sole or shared ownership. In cases of equitable ownership, where one's name may not be on the deed but has contributed significantly to the home's upkeep or mortgage, evidence of these contributions is necessary. The Social Security Administration (SSA) examines these situations closely, utilizing criteria like the principal place of residence and the circumstances under which you might leave the home to determine eligibility for exclusions.
The property must be your principal place of residence to qualify for SSI exclusion. If you own more than one property, factors such as time spent at each location, voting registration, and address use for mail or tax purposes are considered to identify the primary residence. Leaving the home without the intention to return can affect its exclusion status, except in specific situations like institutionalization where a spouse or dependent relative continues to live in the home, instances of domestic violence, or when selling the home would cause undue hardship.
Various federal, state, and private programs are designed to assist individuals with disabilities, including those on SSI, in purchasing homes[2]:
FHA Home Loans: Offered with low down payment options and flexible credit rules, these are especially suited for individuals with lower incomes or credit scores. FHA loans accept disability income as qualifying income, provided it is stable and well-documented​​.
VA Home Loans: Available to veterans, including those with service-connected disabilities. These loans offer significant benefits, such as no down payment requirements and the possibility of exemption from the VA loan funding fee​​​​.
USDA Home Loans: Aimed at low-income individuals in rural areas, offering both direct and guaranteed loans with no down payment necessary in some cases​​.
Habitat for Humanity and Homes for Our Troops: Non-profit organizations that provide housing solutions tailored to the needs of low-income families and veterans severely injured in the line of duty, respectively​​.
Housing Choice Voucher Homeownership Program: Allows recipients to use their vouchers towards homeownership costs, with certain exemptions for recipients with disabilities​​.
For those on a limited income, saving for a down payment can be challenging. Utilizing gifts from family members or considering loans that might be factored into your financial situation are strategies that can be explored. Various assistance programs allow for down payment support, which can be pivotal in making homeownership accessible​​.
“Several assistance programs support SSI recipients in buying a home.”
Income and resources are critically evaluated when determining SSI eligibility. Certain types of income and assets are excluded, such as the home you live in, one vehicle, life insurance policies under a certain value, and burial spaces. Understanding these exclusions and managing your resources accordingly is key to maintaining SSI benefits while pursuing homeownership​​​​.
Owning a home while on Supplemental Security Income is not only possible but can be a fulfilling achievement with proper planning and guidance. By leveraging available resources, understanding SSI's asset limits and exclusions, and exploring assistance programs designed for individuals with disabilities, SSI recipients can navigate the path to homeownership. Remember, every journey begins with a single step. Armed with the right information and support, you can make informed decisions that align with your homeownership goals and SSI benefits, ensuring a stable and secure future in a place you can call your own.
Find out more about SSI disability for children with ADHD. In 2024 in our detailed guide. Learn more by visiting Benefits Aid and exploring our comprehensive resources.