04-13-2012 03:21 PM
We got good news today! We heard from the underwriter and he gave us our conditions. Most are simple things that are no big deal, but one thing he is asking for is just not possible. My daughter, who is 3, receives disability. The UW wants us to get a letter from Social Security saying she is guaranteed disability income for the next 3 years. This is impossible. SSI is based on income, and we have to provide our income each month to them. Basically, it's a month to month qualification. We always qualify, but social security verifies that monthly. Her next review isn't until July 2014, but that is not 3 years.
Would the UW accept a letter from her Dr. saying she is presumed to be disabled for the next 3 years? What would happen if we do not meet this condition? Will the whole loan be denied, or will the SSI income not be included?
I was so excited to get my conditional approval, but now I'm worried about the disability issue!!
04-13-2012 05:18 PM - edited 04-13-2012 05:20 PM
Do you need the SSI income to qualify for the loan? If not, the lender can just exclude the income and that will eliminate the proof of three year continuance condition.
Verification of continuance is a pretty standard condition- kinda like providing paystubs and bank statements. It's odd that your LO didn't advise you of that when the application was submitted. Not sure if the Dr's letter will be acceptable, but I hope everything works out for you!
04-13-2012 05:33 PM
Hello. I agree that the dr. note won't work. We have been raising a family member for over 10 years and we used to get SS money for him, but not anymore, so I kinda know something about the SS system.
I agree that you need to take the SS money out of the equation. Possibly another lender would allow it without that letter, though.
04-13-2012 09:41 PM
I don't see how they can expect something that is just not possible. Yes, my daughter may be disabled, but there is no guarantee that she will forever qualify for SSI, purely from an income standpoint. What if we start making more money, then we wouldn't get it anymore. There is no way Social Security would be able to write a letter guaranteeing disability income for the next 3 years. BUT I would think that if a Dr. says that based on her medical condition she would qualify medically, then that should be enough.
I'm not sure if we need the disability income or not to qualify. I think that if we took it away it'd be very close. Has anyone had to deal with this before?
04-14-2012 05:52 AM
You really need to speak with your LO. Others can offer their experiences with this issue (if they've had it), but it would be specific to their lender, loan type and situation.
Contact your LO on Monday- he/she can get you clarification from UW about whether the Dr's letter will suffice. You should also ask what the max front and back end ratios are, and see if you qualify without the income.