|
|
Your Income
Your income must also be verified for the last two years and the same basic documentation used to verify your employment history is used here. Qualifying income is the income that can reasonably be expected to continue at the same or higher rate in the first 3 to 5 years of the loan.
There are five different types of income that may be used to help you qualify. These include:
- Salary and wage income (wages, salaries, commissions, bonuses, etc.)
- Investment income (interest and dividend income, note income, capital gains, etc.)
- Non-earned income (child support, alimony, trust income, etc.)
- Self-employment income (Schedule C or Partnership income)
- Rental income from other properties owned or if your new home will be 2-4 units
Investment income, non-earned income and self-employment income all require additional documentation and special guidelines apply.
The basic rule, "If you can't trace it, you can't use it", applies to employment history and income. That's why income that does not show up on your tax returns, W-2's or pay stubs or any income that is received in cash and can't be documented cannot be used to help you qualify for a mortgage.
|
|
