This is a first for me.....I have a customer that works but also has additional income from ssi for a heart condition. Well she was qualified based on the wages and ssi that she has an "award letter" for 1 year. The lender wants a letter of continuance for 3 years and just don't think that is going to be possible. How can a medical professional state that? Is this possible with a heart condition? That is something that can be improved. My customer is so upset now because she is so deep into this transaction and so much money invested that she is probably going to lose because of the requirement.

I know I shouldn't take this personal but I am. What if anything can be done?

SSI from my experience will not issue a letter for more then 1 year at a time for health issues, but you should be able to get a letter from her DR. that explains the condition. Detail how long it has been received, and what will make it continue. Her awards letter states that it is not permanent income, and the Govt. can stop paying it.

I am no SSI expert, but I would assume that she has to keep some letter up to date with SSI or they will stop paying the SSI. What exactly is she required to give to SSI annually to ensure the payments continue? If she does not currently provide a letter what does she plan to do when SSI sends her a letter stating that her benefits will stop on X date? What she would provide for that she will need for your U/W. If she has no plan in place and the SSI is necessary to meet DTI for the borrowing the money to pay for her house note will she be homeless, and on the news if it stops?

It sucks but the ball is in your customers court and she needs to get to work, and don't take it personal. Customers forget they are applying to borrow money, and I don't think there is a U/W that would ignore this stip. It is a perfectly reasonable stip for borrowing money that the customer prove they can afford to pay it back. This might sound mean, but the lender doesn't need the loan as much as the risk.

She and her spouse both work currently. They are currently paying about $400 a month more in rent than the new mortgage will be. We are all well aware that it could stop at anytime that is why I know that no such letter can be given from a doctor. They take it on a year to year basis.

Ok, I just looked at an FHA loan I closed in June where one of the children rcv'd SSI for a heart condition. It was a supplemental SSI that could change if condition approves. This letter is exactly what your customer has. I was asked to provide a letter of continuance from SSI, which of course I did not get. I did not provide a letter from a doctor, but did show bank statements as proof of additional income and used this to get an exception from the u/w.

What is the DTI without the SSI? What is the DTI based on current higher monthly rent? Obviously if you throw out the DTI and use current housing ratios borrower is making timely payments. Use this strategy along with showing the SSI deposits and they may be considered as a compensating factor. However if this person has a DTI of 60% without the SSI you may have a problem. How much are they receiving monthly?

Thanks TN Broker! I have good news after all, thank God. The lender was able to get an approval without the letter of continuance. The lender didn't go into specifics but she did state that dti was high. She also told me that some of the charge cards would have to be paid off to make it work. I have dodged another bullet. I also forgot to mention that the seller is participating in the Ameridream program so I was really pressed for time.

Glad to hear that it is going to work out. I hope your customer is able to understand what the underwriter was requesting the info for, and there is no hard feelings. Take that bad boy to closing.

I have never had a lender NOT ask for this on SSI Dissability.