Financing in Washington>Question Details

Trulia Washi…, Other/Just Looking in Charlotte, NC

What qualifies as a source of income for an FHA loan?

Asked by Trulia Washington DC, Charlotte, NC Mon Apr 1, 2013

Help the community by answering this question:

Answers

4
Marion,
Maureen is correct, FHA will permit the use of seasonal income, provided the borrower has worked the same job for the past two years and expects to be re-hired the next season. Examples would be umpiring baseball games in the summer or working retail during the holiday season. You do have to dcucment a 2 year history of the seasonal work in order to include it in the borrower's qualifiying income calculation. Seasonal unemployment is also acceptable for borrower's working in maybe construction or another job where annual layoffs are the industry standard. If you are looking to use child support, disability earnings or something with a potential end date, FHA will require proof of 3 years continuance to count the earnings. Hope this helps!
Regards,
Julie A. Horvath
Northpointe Bank
Area Manager
555 Metro Place North, Suite 320
Dublin, OH 43017
NMLS ID: 563029
866.901.3570 phone
740.602.3320 mobile
866.901.3571 fax
0 votes Thank Flag Link Thu Apr 4, 2013
Maureen,

In your list of income sources for a FHA loan per a lender; I did not know that unemployment compensation or seasonal pay were viable sources for qualifying, since they are temporary sources of income. What happens when thoses sources of income are depleted ?
0 votes Thank Flag Link Thu Apr 4, 2013
A lender has shared the following information. All sources need to documented and taxable income as shown on a 1040 is the usual first step. Self-employed need to have records of two years to qualify.

"Below is what could be could be qualified as an FHA income:

Seasonal pay, child support, retirement pension payments, unemployment compensation, VA benefits, military pay, Social Security income, alimony, and rent paid by family all qualify as income sources. Part-time pay, overtime, and bonus pay"
0 votes Thank Flag Link Tue Apr 2, 2013
If it can be taxed and documented for at least 2 years then that's a good start. What's your scenario?
0 votes Thank Flag Link Mon Apr 1, 2013
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer