B3-3.4-09, Long-term Disability Income (03/04/2026)

The following table provides requirements for long-term disability income. It does not apply to disability income that is received from the Social Security Administration. See B3-3.4-15, Social Security Income B3-3.4-15, Social Security Income, for additional information.

Criteria	Requirements
Documentation	The lender must obtain a copy of the borrower's disability policy or benefits statement from the benefits payer (insurance company, employer, or other qualified disinterested party) to determine: the borrower's current eligibility for the disability benefits, the amount and frequency of the disability payments, and if there is a contractually established termination or modification date. Additionally, the lender must obtain evidence that the borrower will receive at least one payment on or before the first payment due date.
Income History	No minimum history is required.
Income Continuance	Lenders are not required to verify continuance unless they have reason to believe the income may not continue. (Re-evaluation of benefits is not considered a reason to support income will not continue.)
Determination of Qualifying Income	The monthly income amount as documented above may be used as qualifying income. However, if a borrower is currently receiving short-term disability payments that will decrease to a lesser amount within the next three years because they are being converted to long-term benefits, the amount of the long-term benefits must be used as income to qualify the borrower. For additional information on short-term disability, see B3-3.3-09, Temporary Leave Income B3-3.3-09, Temporary Leave Income.
DU Validation Service	If a borrower's long-term disability income is validated by the DU validation service, DU will issue a message indicating the required documentation. This documentation may differ from the requirements described above. See B3-2-02, DU Validation Service B3-2-02, DU Validation Service.