You can find out which policy your state uses here, in SI 01715.010. Generally, if you receive both SSI and Medicaid, you may need to notify both your local SSA office and your local state Medicaid office—but if you receive just SSI or just Medicaid, you may only need to notify one office or the other. Gambling is the latest target of banks in the new world of mortgage lending, as many lenders are now questioning betting habits great and small. Mortgage brokers are warning prospective home. The primary reason to get pre-approved for a mortgage before shopping for homes is to ensure you’re looking at homes that are within the price range that you can afford. Even though a buyer will get pre-approved for a mortgage before shopping for homes doesn’t mean there is a guarantee they will successfully obtain the financing. Having a good credit history improves your chances of getting a mortgage. Stop gambling - The most obvious, but this can only happen if you want to stop. Get the right mortgage advice Booking an appointment with a mortgage broker can help you get the advice you need to. Also, if you are planning to retire at the traditional age of 65-70 you will need to show that the income from your pension, annuities or other investments can adequately meet the mortgage repayments.
- Can Gambling Stop You Getting A Mortgage Loan
- Can Gambling Stop You Getting A Mortgage Rates
- Can Gambling Stop You Getting A Mortgage Broker
- Can Gambling Stop You Getting A Mortgage Lender
Sometimes a supplemental security income (SSI) recipient will become eligible to receive a moderate or large sum of money that could make them ineligible for SSI. This can happen for any number of reasons, but we often see this happening if a person receives an inheritance or settles a personal injury claim.
There are two ways to handle the situation. For a large sum, a special needs trust should be considered. If it’s a smaller sum, then “spending down” the money to below the SSI resource limit— another way of saying “Go spend it!”—may be the right solution.
The resource limit is $2,000 for unmarried individuals and $3,000 for married couples, meaning that if you receive a sum of money, you will need to spend down those funds until you have less than $3,000 if you are married or less than $2,000 if you are not. See SI 01110.003.
But if you choose to spend down a lump sum, be careful and follow the rules:
1) Timing: In order to minimize the loss of SSI and Medicaid, goods and services must be purchased in the same calendar month in which the lump sum is received. See SI 01110.600. Note that the individual does not have a period of a month or 30 days to complete the spend down. If a lump sum is received on the 20th of August for example, the spend down should be completed in 11 days to bring resources below the applicable limit before September 1.
2) What to Purchase: Recipients of SSI need to plan spend-downs carefully. Here are some suggestions for what an individual could buy to spend down a lump sum:
- Buying a home or paying off a mortgage, if the SSI recipient is on the title or has a lifetime agreement to be a tenant of the home. Additionally, home repairs, maintenance, remodeling or adding accessibility features could all be approved expenses.
- Buying a car or paying off a car, if the SSI recipient is on the title.
- Buying homeowner’s insurance or car insurance
- Squaring up debts. It is important to know that there are restrictions on how and whether an SSI recipient can pay back a loan from friends or family.
- Educational costs
- Medical bills (if these bills aren’t covered by Medicaid or Medicare)
- Estate planning, including pre-paying for funeral and burial expenses. It may be possible to pay an attorney in advance to help with this kind of work.
- Furniture, appliances, and other home furnishings
- Entertainment/recreational/vacation expenses, including travel
- Personal items such as clothing, household goods, and personal effects
3) Keep the Limits in Mind: Only certain purchases count as “exempt resources”—other purchases might end up counting toward the $2,000/$3,000 resource limit, which could quickly accumulate to the point of disqualifying you. Certain purchases—if you were to give any of your money away, or if you used some of your money to buy gifts for other people—would also disqualify you from continuing to receive SSI. Here are some of the exempt resources that will not count toward the resource limit:
- One home, including the land it stands on
- One vehicle, operational or not. See SI 01130.200.
For more information on exempt resources, see SI 01110.210.
4) Reporting: The spend down must be reported to Social Security by the 10th day of the month following the month in which the lump sum was received. Here are some guidelines to follow in order to properly prepare for the reporting:
- Keep receipts for all items or services purchased, including payments for home remodeling.
- The claimant must be on the title to any real property or vehicle purchased with the lump sum.
- The claimant must be the loss payee for any auto or homeowners insurance purchased with the lump sum.
- Make copies of current bank statements from all accounts, as well as a printout on the last day of the month showing the balance as of that day.
- Checks to purchase items and services should clear the beneficiary’s bank account by the last day of the spend-down month. If there is any question that a check may not clear the account in the month, payment should be made by certified check or a cashier’s check.
- Have the bank provide documentation of the bank balance on the first day of the next month to verify the spend down was successfully completed.
When you send copies of the relevant paperwork (receipts, bank statements, copies of any relevant titles, etc.) to your local SSA office, make sure to include a dated cover letter with your full legal name, contact information, and Social Security Number explaining that you have utilized a spend down and that you are enclosing the necessary documentation. For more information on how they will use your documentation to evaluate whether to approve your spend down, see SI 01150.007. Make sure to make a copy of all the documentation for your own records. It is wise to send this information via Certified Mail to be absolutely sure the SSA receives it.
Your spend down may also need to be reported to the local state Medicaid office, depending on whether your state is a 1634, 209(b), or SSI criteria state. You can find out which policy your state uses here, in SI 01715.010. Generally, if you receive both SSI and Medicaid, you may need to notify both your local SSA office and your local state Medicaid office—but if you receive just SSI or just Medicaid, you may only need to notify one office or the other. It is important to research the proper procedure for residents of your state to ensure your benefits are not interrupted.
For more information: http://www.specialneedsalliance.org/the-voice/utilizing-the-spend-down-option-to-maintain-ssi-andor-medicaid-eligibility-2/
For another write-up on this subject, see this article by the CPT Institute: https://www.cptinstitute.org/blog/a-spend-down-when-a-special-needs-trust-isnt-the-best-option
Originally posted March 2014, updated December 2018.
Getting approved for a mortgage can be challenging, but there are steps you can take to boost your chances.
Here, we reveal 10 things that could affect the likelihood of you securing a mortgage, and offer tips on how to overcome them.
1) Having large amounts of outstanding debt
Generally speaking, it is possible to get a mortgage with credit card debt.
Lenders may be reluctant to grant you a mortgage, however, if you have large amounts of outstanding debt from personal loans and credit cards.
This is because having to pay off other loans will directly impact how much (and whether) you can afford your mortgage repayments each month.
For this reason, it’s really important to pay down as much debt as possible before making a mortgage application.
While your student loan will not be considered the same as other forms of debt, your lender may take it into account when working out whether or not you can afford to take out a loan. Read will my student loan affect my mortgage? to find out more.
2) Having a bad credit score
If you’ve got a bad credit history, County Court Judgements (CCJs), or a bankruptcy on your record it can be really difficult to get approved for a mortgage.
This is because lenders use your credit history to judge your ability to stay on stop of debt.
Missing or making late payments on a previous mortgage, loan, credit card or even your mobile phone bill could potentially scupper your chances of being accepted for a mortgage.
All hope isn’t lost if you have an adverse credit history though, as it may be possible to get approved for a bad credit mortgage.
However, rates on bad credit mortgages can be high, so it may be better to spend time improving your credit score and then applying for a regular mortgage.
3) Having no credit history at all
Applying for a loan with limited or no credit history is a bit like applying for a job without a CV.
Since your credit score lets lenders know how reliable you are at making repayments and handling your debt, you’ll need to have some form of history to be approved for such a large loan.
It’s important to check your credit score before applying for a loan and, where possible, take steps to build up a good credit score before making a mortgage application.
4) Not being on the electoral roll
The electoral roll allows lenders to verify your identity quickly. Not being registered will make it difficult for a lender to confirm who you are.
This could slow down the mortgage application process, as your lender will probably request additional identification checks, and it could even result in your application being rejected altogether.
The good news? Getting on the electoral roll couldn’t be simpler; all you have to do is fill out a form using the register to vote service on Gov.uk.
5) Buying a ‘non-standard’ property
The type of property you’re looking to buy could affect the success of your mortgage application.
Ex-local authority housing, for example, can be appealing as these types of home are often cheaper than others on the open market. Most lenders, however, are reluctant to grant mortgages on this type of property as they are considered more likely to lose value over time.
Similarly, you may find it difficult to get a mortgage for a flat above commercial premises like shops, pubs or restaurants, as they are at a greater risk of being affected by things like noises, smells, rubbish and security issues, which can also bring down the value of the property.
For more information check out our story, 16 properties to avoid if you want to get a mortgage.
6) Trying to borrow too much money
It’s important to do the maths and be realistic about how much money you can afford to borrow.
Typically, mortgage lenders will only lend a maximum of four-and-a-half times the combined annual income of you and anyone else you’re buying with. Asking for a loan above this threshold will likely result in your application be rejected – and you may well find that you’re offered less than the maximum.
- Find out more: how much mortgage can I borrow?
7) Being self-employed
Mortgage providers can be reluctant to approve a loan to self-employed workers.
This is because, without a contract of employment or regular payslips, it can be difficult to prove that you’ll be able to keep up with mortgage repayments.
If you’re self-employed and are hoping to buy a home, it’s vital to compile documents proving your past income and future opportunities for payment. Most lenders will want to see at least two years’ worth of accounts.
- Find out more: mortgages for self-employed buyers
8) Major lifestyle changes
Going through major lifestyle changes that could affect your finances, such as starting a family or going through a divorce, could negatively affect your mortgage chances.
Some lenders may partly base their decision on whether and how much to lend you on childcare fees, for example. Find out more in does having children ruin your mortgage chances?
Can Gambling Stop You Getting A Mortgage Loan
Similarly, if you are expecting a child and going on maternity leave at the time of applying for a mortgage, lenders may be wary of how much you’ll be able to afford if you’re expecting a decrease in income. Read our guide on getting your mortgage when pregnant for more information.
And if you’re hoping to get a mortgage after getting divorced, it’s important to re-evaluate your financial circumstances, especially if you’re buying alone. Our guide on selling a house in a divorce shares everything you need to know about securing a new home.
9) Errors on your application
Lenders scrutinise every mortgage application with a close lens, so it’s really important to make sure all of the information you give your lender is correct and up-to-date.
Any discrepancies or inaccuracies on your application could not only slow down the loan process, it could also result in your loan being turned down altogether.
- Find out more: how to improve your mortgage chances
10) Applying to the wrong lender
Can Gambling Stop You Getting A Mortgage Rates
So your finances are in great order, your credit score is impeccable; everything should be smooth sailing, right? Not always.
Can Gambling Stop You Getting A Mortgage Broker
Each lender will have its own affordability criteria and may place more weight on certain factors. For example, while some lenders may be more willing to accept applications from households with growing families or self-employed applicants, others may have more rigid criteria.
It’s important to find the lender most likely to accept your financial and personal circumstances the way they are – and this is where the expertise of a mortgage broker can really help.
Speak to the experts
Whether you’re a first-time buyer or home mover, applying for a mortgage can be a stressful and daunting prospect.
Can Gambling Stop You Getting A Mortgage Lender
Speaking to a mortgage broker can not only help you find the best mortgage deals, but also find the most suitable lenders for your personal and financial circumstances.