Sally lives in a house owned by her mother. Before applying for SSI, she signed a lease with her mother to rent a room in the house. During the SSI financial interview, she presents the rental credit agreement and receives the full SSI for all months of repayment. She reimburses the rent owed to her mother. Below are examples of both parts of a rental loan agreement. Both the landlord and the beneficiary must sign the rental agreement. In the absence of a formal written agreement, social security will generally not consider this to be a valid credit agreement. This can pose two problems: contract law varies from state to state, so if there is no agreement signed before the loan starts, SSA can take into account the laws of your state. In some States, they may accept an oral agreement which both persons have subsequently confirmed has been concluded orally. An oral agreement must still be concluded before the start of the rental agreement. The Social Security Administration has a directive that allows you to create a rental loan agreement to owe rent and repay it in the future.
You can enter into a lease directly with the landlord or via a sublease. If you lend money to someone else and we count the credit agreement as a resource, we do not count the interest you receive as income. Credit must be unconditional. The agreement must be to repay the loan, even if the benefits are refused. There are no rules on the repayment period. Interest is not necessary. Here are three examples from the Social Security manual: Subletting example: Jennifer`s friend rents an apartment. When Jennifer is disabled, her friend agrees to let her live there, as long as Jennifer promises to reimburse her half of the rent and incidentals. Jennifer and her girlfriend sign a rental agreement. After being admitted for a disability, Jennifer reimburses her girlfriend. 🌸 rental contracts are sometimes used by adults with disabilities who relocate to their parents` homes or by children with disabilities when they are 18 years old. If the disability application process takes several years (which sometimes is the case), a rental loan agreement can help establish clear documentation of all funds due for that period.
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