Mortgage FAQ: What Counts as Income When Applying for a Mortgage?
"WHEN I APPLY FOR A MORTGAGE, WHAT WILL COUNT AS INCOME? SOME OF MY INCOME DOESN’T COME FROM MY JOB, BUT RATHER COMES FROM CHILD SUPPORT AND LONG-TERM DISABILITY. WILL THAT COUNT?"
You may be surprised at the number of different forms of “income” that lenders will consider when qualifying a borrower. Although the standard types of income—salaries, commissions, hourly wages, etc.—are by far the most common forms of income, lenders do consider a wide range of sources that may include the following:
- Retirement and pension income
- Capital gains income
- Disability income
- Military allowances and other military income
- Some public assistance
- Child support or alimony payments
- Income from a trust
These are just a few of the types of income that a lender may consider. Also, keep in mind that what is accepted may differ between lenders. Finally, no matter what your source of income is, make sure you have proper documentation of that income and be aware that you may be required to provide several forms of supporting documentation for any non-standard forms of income.
For more information on what can and cannot be counted as income, talk to your mortgage professional.
For more than 25 years, Omega Financial has been serving mortgage clients in Massachusetts. Our brokers have approximately 50 years in the mortgage business. You always will receive fast, courteous, and accurate information. Omega Financial, Inc. is a company duly licensed to operate in Massachusetts as a Mortgage Brokerage. We are located in the Town of Norwood, Massachusetts where we have been operating as Omega Financial Incorporated since 1988.
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