We have a situation in which a person is inquiring about obtaining a home loan. This person is currently on disability and that disability is under the control of a rep payee. Has anyone ever run into a situation like this?

thanks!

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We've done some loans like this in-house, including state/county housing assistance too. How that would work today with ATR rules though...not sure you could qualify it.

Definitely a tough one as they don't control the use of their own income. If you feel comfortable with it, I'm sure you could still do it as an exception, but I'm sure it'd require a hefty amount of documentation. And the LTV/other terms would have to be very comfortable for you. Does the rep payee have any financial/full POA also, by chance? That'd sure help out!

Thank you for the reply. I just didn't even know if it was possible. If someone doesn't have the capacity to control their own funds, how can they have a mortgage? But I guess that is where the rep payee comes in. From a social security administration standpoint, the only thing I see via on line is that if the beneficiary gets a lump sum payment, the rep payee can take out a mortgage. The details are sketchy at best. They may qualify for state and county assistance as well so who knows?

We have a similar situation that just came up. The applicant (SSI beneficiary) has applied for loan to purchase a primary residence and three rent house. They received SSI and someone else controls the SSI payments. What is a Bank to do in this type of situation? I understand doing a loan for the primary dwelling, but the three rent houses? What about the representative payee? Do they need to sign off on the SSI payment to pay the loan since they are in control of the payments?