Personal Loans for People on Disability From LoanNow
If you have a disability, you face special challenges that able-bodied people don’t have to deal with. At the same time, you have to deal with the challenges of everyday life. One of those challenges may be obtaining an installment loan.
The good news is that there are resources available to help you obtain the financing that you need. The bad news is that there are also traps that target people with disabilities – especially people who receive disability benefits – either from private sources or from the government.
Commercial banks and other financial institutions offer Access loans that are specifically designed to assist individuals with disabilities. They can use the money to finance vehicle accommodations so that they can drive, or to purchase accommodations such as specially designed toilets, showers or stair lifts.
It is worth the time to investigate all available financial resources for accommodations through the government assistance program(s) from which you receive funding, especially if you are considering taking out a loan on money that could be available to you for free.
Mortgage Loans for Disabled Home Buyers
Depending on the nature and extent of your disability, you may qualify for special accommodations when you seek a mortgage. For instance, the National Association of Realtors published a page in its Realtor Mag called Resources for Clients with Disabilities. This page includes state programs offering low-interest mortgages for home buyers with disabilities.
At the same time, mortgage lenders are prohibited from placing restrictions against you or refusing to lend to you simply because you have a disability. Be sure to talk to your housing counselor about all of your options for loans.
Business Loans for Disabled Entrepreneurs from the Small Business Administration
Many individuals with disabilities find it difficult to obtain traditional jobs or are unable to function in a conventional workplace. Self-employment can provide an avenue to financial stability while providing the flexibility that disabled people sometimes need.
The Small Business Administration (SBA) serves as a portal for a number of national and state resources (including loans) for people with disabilities to start their own businesses.
Other Government Loans for Disabled Individuals
The GovLoans.gov and Disabled World websites serve as portals for government sponsored loans and other financial resources for people with disabilities. You may also be able to obtain assistance from your state.
Check out the Virtual CIL (Center for Independent Living) website, which includes a Directory of Independent Living Centers for all 50 states plus the District of Columbia.
How Loans Affect Government Benefits
There are three major federal disability assistance programs: Social Security Disability Insurance (SSDI), Supplemental Security Insurance (SSI) and Veterans Administration (VA) benefits. SSDI benefits provide income for people who are no longer able to work because of a disability. SSI provides cash benefits for low-income individuals over age 65 or low-income individuals of any age who are disabled. VA benefits cover a wide range of resources, including disability payments. The details for each of these programs are available from the Social Security Administration or the Veterans Administration. Depending on your circumstances, you may collect one, two or all three types of benefits.
An important consideration to keep in mind is that receiving loans may affect your benefits. For instance, if you receive SSI and take out a loan, you must spend the money the same month you receive it. Otherwise, you must declare the loan amongst your assets when you file your report with SSI during the following month. . Contact your benefits counselor or other administrator offer your particular program for further details.
Getting a Loan If You Have a Disability
In many ways, the process of obtaining a loan works the same way for disabled individuals as for able-bodied individuals. You must demonstrate that you have sufficient resources to repay the loan. You may also need to show that you are creditworthy before you can be approved.
Lenders may be more flexible with their income requirements, for instance, allowing you to include government benefits among the resources available to you to repay your loan.You may also receive more leeway concerning creditworthiness. To take advantage of special loan programs, you may need official certification of your disability from a physician or government agency.
Avoid the Payday Loan Trap
Conducting an online search for loans for disabled individuals yields a bonanza of results, but beware: many of those so-called resources are actually links to payday lenders. Payday lenders frequently favor individuals who receive disability payments, because they are a reliable source of income. If you see phrases like “cash in 24 hours” “no faxing” & “poor credit accepted,” you may be dealing with a payday lender rather than a legitimate installment lender.
At LoanNow, disability payments are accepted as income to qualify for a personal loan. But the difference is that LoanNow considers your entire financial picture, not just your income. And if you qualify, LoanNow will work with you to improve your financial profile so that you can pay off your loan in full and qualify for better credit terms in the future, rather than get trapped in the endless cycle of payday loan rollovers.