Disability pay and unsecured loan

Posted By: M&M

Disability pay and unsecured loan - 02/11/20 04:45 PM

I'm aware of all the guidance out around disability pay (SSI and SSDI), the FHA and mortgage lending. We have a customer who is on disability, paid through his work (not SSI or SSDI), who has applied for an unsecured loan. He cannot afford the loan while on disability, but he may be able to afford it when he returns to work in 2-3 months. Can we deny this because he cannot repay the loan right now? Or do we need to consider his income once he returns to work, even though he won't be able to repay it over the next few months? TIA!
Posted By: rlcarey

Re: Disability pay and unsecured loan - 02/11/20 04:54 PM

You cannot discount the current disability income. But you don't have to act like that is not their current income.
Posted By: M&M

Re: Disability pay and unsecured loan - 02/11/20 07:00 PM

Not sure what you mean by "cannot discount the current disability income"? We are including it in our DTI calculation- it just isn't enough to pay the new loan while he is out on disability.
Posted By: rlcarey

Re: Disability pay and unsecured loan - 02/11/20 07:29 PM

It means that you cannot "not count it" or discount it in some manner. The disability pay issues you previously mentioned was the fact that they did not accept disability pay at all for qualification purposes.