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BY MARY ANNE EHLERT
PRESIDENT AND FOUNDER, PROTECTED TOMORROWS INC.
Financing for individuals and families with
special needs may require special care
The number of americans with special needs — ranging from physical disabilities to mental
impairments — is growing. as this special-needs market segment continues
to expand, more and more individuals
and families need help to find accessible housing and the financing to secure
it. These families need assistance in a
number of areas, and mortgage brokers
and originators who help them may
find a fulfilling market niche, as well as
an increasing client base.
sclerosis (aLS or Lou Gehrig’s disease), or multiple sclerosis
• A physical disability, such as cere-
bral palsy, an amputation or a trau-
matic injury causing paralysis
These conditions cover a wide spec-
trum of individuals, which is why so
many families are affected.
Disabilities transcend generations
and income groups. families of all
ages and classes can find themselves
caring for young children with disabili-
ties or for aging parents — and some-
times both. an estimated 54 million
americans have a disability, whether
it’s developmental, cognitive, physical
or mental. according to the National
Disability Institute, one in every five
individuals reports a disability; 20 mil-
lion families have at least one member
who has a disability; and more than
one-third of american households ei-
ther report a member with a disability
or are impacted by disability.
and the number of people with dis-
abilities is growing. because of medi-
cal advances, children have been able
to survive illnesses and live with con-
ditions that previously were fatal. as
more premature babies have been
saved, the risk of those children hav-
ing disabilities has increased; and as
more women give birth later in life,
the risk of genetic disorders also in-
creases. Conditions such as attention
deficit hyperactivity disorder (aDHD),
depression and autism are being more
readily diagnosed. In fact, according
to a recent study from the Centers for
Disease Control and Prevention, the
number of children with a disability
increased from 8.2 million to about
10 million between 1997 and 2008,
driven largely by increases in the diag-
noses of autism and aDHD.
The aging population is another
growing factor in this market segment.
More than 50 percent of those aged
65 or older have some form of disability, according to the Census bureau. a
recent study published in the Archives
of Neurology predicted that the number of people treated with alzheimer’s
disease will reach 13.2 million by 2050.
In fact, according to the alzheimer’s
association, every 69 seconds an
american develops the disease.
In addition, separate from the
conditions brought about by aging,
people with disabilities are getting
older, as well. There are an estimated
641,000 adults age 60 and older with
intellectual and other developmental
disabilities in the U.S. That number
could double to 1.2 million by the year
2030, when members of the baby
boomer generation will be in their 60s.
Working in this market
To meet the growing demand from
these individuals and their caregivers,
mortgage brokers must approach each
situation on a case-by-case basis and
be well-versed in the ways that special
needs can affect financing.
A growing market
The special-needs market already is
much larger than many people suspect. The most recent report from the
U.S. Census bureau indicates that more
than 18 percent of americans have a
disability, and 12 percent have a severe
disability. a disability can be defined
as any physical or mental impairment
that substantially limits one or more
major life activities for the individual.
Many who are unfamiliar with this
market sector may be unaware of how
broad its scope is. To get a better understanding of the potential clients
in this niche, consider a family with a
member who has one of the following
special needs:
• A developmental disability, like autism, Down syndrome or angelman
syndrome
• A mental illness, like post-traumatic
stress disorder or schizophrenia
• A cognitive or neurological disorder,
such as alzheimer’s disease, Parkinson’s disease, amyotrophic lateral
“More than 50 percent
of those aged 65 or
older have some form of
disability, according to
the Census Bureau.”
On the Web
For more information on disability
issues, visit the resources available
at the following websites:
• The U.S. government’s portal on
disabilities: disability.gov
• Social Security administration
Disability Programs:
ssa.gov/disability
• americans with Disabilities act:
ada.gov
• National Disability Institute:
realeconomicimpact.org
• Disabled World’s page on
housing finance:
sctsm.in/DisabledWorld
• State government information:
sctsm.in/LOCstate
first, brokers will need to introduce
the topic of disabilities from the start
and have appropriate information to
offer in response. a couple of simple
questions can open the door to the spe-
cial-needs market. brokers might ask:
Lending programs
Mortgage brokers and originators should understand more lending programs than the obvious U.S.
Department of Housing and Urban
Development (HUD) and fannie Mae
options. There are many programs
that offer attractive lending options
not only for people with disabilities,
but also to families who have a person with a disability living with them.
These may include:
• lower-than-market interest rates
• lower-than-market downpayments
• Assistance with closing costs and
lowered origination fees
• loans and grants for assistive
technology
Most programs are designed by
states and counties. a good resource
for brokers is the information provided
by Disabled World on disability housing and home loans for disabled people
( sctsm.in/DisabledWorld). It lists by
state the authority that provides special home-loan programs for those with
disabilities. Programs are changing constantly, so it is important for mortgage
brokers to research the various opportunities available when they identify their
client’s needs. (for more on disability
issues and where to research them, see
the sidebar to the left.)
This knowledge is critical because,
in addition to serving the niche better, if mortgage brokers don’t work appropriately for their customers, they
could be putting their business at risk.
Ignorance is no excuse, so becoming
educated is key to serving clients in the
most effective manner.
• • •
Through education and resourceful-
ness, mortgage brokers can become
trusted professionals in the special-
needs niche. They not only will reduce
their business risk, but also deepen
the relationships they have with cus-
tomers. brokers may find it rewarding
to help those with special needs se-
cure financing for their homes. and by
serving this growing market segment
sensitively and skillfully, brokers and
originators can get more referrals and
more business. •
Mary Anne Ehlert is founder and president
of Protected Tomorrows Inc., the leader in
enhancing the lives of families with members
who have special needs. Through their work
with clients and families’ advisers, and alongside other advocates and legislators, Protected Tomorrows addresses many concerns
of families with special needs, like future-care
funding, government benefits, legal considerations, residential options, employment
opportunities, recreational choices, education
options and family communication.
Contact info@protectedtomorrows.com
or visit protectedtomorrows.com.
