Can you get a disability loan?


Can you get a disability loan?

You can get a loan during your disability if you qualify. Typical requirements include a minimum credit score and a maximum amount of existing debt (this varies depending on your income). The time it takes to get a loan varies, but it shouldn’t take more than a few days for many loans.

How can a loan affect disability benefits?

A loan could change your eligibility for Supplemental Security Income (SSI). According to the Social Security Administration, a loan is not considered income. However, if you borrow money and don’t spend it in the same month, it will count towards your resource limit. If your resources exceed the authorized limits, you will not receive SSI benefits for that month.

So if you get the SSI, don’t apply for your loan until you need it and consider applying at the end of the month.

Types of disability loans

If you plan to get a loan during your disability, the type of loan you get will depend on why you need it. Here are a few options.

Personal loan

A personal loan can be used for a variety of reasons, including paying medical bills or financing an engagement ring. Most of these loans do not require collateral.

To get an unsecured personal loan during your disability, you will need to meet the lender’s minimum credit rating.

You will also need to prove that you can pay off the new loan in addition to any existing debt. This can be a barrier for people with disabilities because you have a very low income. So there is not much room for further debt repayments. To help you know these limits, learn about the maximum you can borrow with a personal loan. Or you can check with one of the personal lenders on our list.


You may be able to use your long-term or permanent disability income to qualify for a mortgage. Some home loan programs will even give you special benefits if you have a disability. For example, if you are a disabled veteran, you can apply for VA loan funding fee waiver.

Or if your income is low, the USDA has the Direct Single Family Home Loan Program, where the government pays a portion of your mortgage payment. You can find out more in our guide to USDA loans.

If you are on short-term disability, you can only count on these payments for a limited time. Since your disability income will end, your mortgage application may be refused if you have no other source of income. However, if you are still employed and can prove that you have a job to return to after your disability benefits end, the mortgage lender may consider your regular income in addition to your disability income.

Disability loan

Some people look for a loan to bridge the gap between when they become disabled and when they start receiving disability benefits. This is a personal loan, and you should approach it with caution. This type of loan can be expensive and have a short repayment term. If your application for disability benefits takes longer than expected, you may default on the loan. Plus, if your application for disability benefits is denied, you are still obligated to pay the loan.

Before taking out a short-term loan for early disability, find out if you qualify for emergency disability assistance. SSI beneficiaries may obtain expedited SSI benefits under certain circumstances. To find out more about your options, it’s a good idea to contact your unemployment office.

Medical loan

You may have seen a brochure on medical loans at the front desk of your doctor’s office or dental clinic. These types of loans are used to finance medical expenses. They often have low interest rates and terms that result in affordable payments. Plus, the application process is the same for everyone, whether or not you have a disability.

The catch is that most medical loans are deferred interest loans. If you don’t pay the all loan before the end of the promotional period, you will be charged interest from the loan start date, including the part you have already repaid.

If you are receiving federal disability benefits, you will be eligible for Medicaid, Medicare, or both. In some states, you can apply for back-dated coverage three months before your request for coverage. These may be better options to consider before applying for a medical loan.

Automatic loan

An auto loan is a secured loan that uses your car as collateral. If you default, the lender can withdraw the collateral.

You can apply for a car loan while you are disabled without jumping through special hoops. Most auto lenders have a minimum credit score requirement and simply perform a credit check to see if you qualify. Some will also check your income.

Payday loan

A payday loan is a short term, high interest loan. If possible, it is better to avoid these loans.

Most people are not able to repay their payday loan in full by the due date. And when that happens, you will have to renew the loan and pay more fees. If you can, it’s best to find payday loan alternatives before you take out what looks like a quick and easy loan.

How to get a disability loan

Here’s how to get a disability loan:

1. Check your credit

Make sure that your credit report does not contain any errors that could affect your ability to qualify for a loan.

2. Ask for help

Check with your local Department of Health and Human Services office to find out if you qualify for financial assistance.

3. Look for special programs

Special loan programs can help people with limited fixed incomes get the financing they need.

4. Shop around for the best rates

Check rates with several lenders, especially those that will slowly draw on your credit until you are ready to apply.

4. Wait until you need the loan

Avoid getting the loan too early, or you could jeopardize your disability income.

5. Apply for a loan

Your lender will tell you what documents to submit.

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