Saving for homeownership as a person with a disability can be challenging. Many disabled individuals receive benefits, such as Supplemental Security Income, that limit how much money recipients can have in savings.

ABLE accounts provide those with disabilities a chance to save enough to purchase a house without putting their benefits at risk. In fact, according to the Social Security Administration, ABLE accounts owners had an average of $6,000 saved in their accounts as of 2020 — enough for a 3% down payment on a $200,000 house, says Insider’s recent article entitled, “How people with disabilities can use an ABLE account to buy a house.”

ABLE account owners can withdraw money from their accounts for any qualified disability expense. This includes a wide range of expenses related to things like education, health, transportation, and housing. The purchase of a home, rent payments and other related housing expenses are qualified disability expenses. These accounts can help people with disabilities gain independence through homeownership.

An ABLE account can make homeownership possible for those getting means-tested benefits. These government-provided benefits consider factors like a person’s income or assets before granting them.

One of the more popular uses of an ABLE account for hopeful homeowners is saving for a down payment.

Homeownership and living with a disability come with many other expenses, making an ABLE account a great way for those who are preparing financially to own their own home.

According to the IRS, the money in these accounts can be used for expenses related to the following:

  • Housing
  • Education
  • Transportation
  • Health
  • Prevention and wellness
  • Employment training and support
  • Assistive technology and personal support services

Learn more about ABLE Accounts on the ABLE National Resource Center (ABLE NRC) website:

If you have questions about opening an ABLE account for yourself or a disabled loved one or need guidance about planning for the future to protect a special needs loved one, contact our Framingham special needs planning team.

Reference: Insider (March 30, 2023) “How people with disabilities can use an ABLE account to buy a house”