Twelve (12) Sources of Income First Time Home Buyers Can Use to Qualify for a Mortgage
Hello and welcome. There are many different types of income sources you can use to qualify for a mortgage. Here are twelve (12) different sources of income you can use:
Alimony - Must received 6-12 months regular payments before applying for a mortgage.
Pension - Must show that income will continue for at least three years after closing.
Child support - Must received 6-12 months regular payments before applying for a mortgage.
Self-employment income- Will need two years of tax returns.
Dividend or interest income - Payments must be regular and show two-year history of receiving payments.
Rental income - Required documents may include signed lease agreements, tax returns with Schedule E, property management records or an appraisal with a rental analysis.
Social Security payments - Must show that income will continue for at least three years after closing.
Disability payment - Must show that income will continue for at least three years after closing.
401(k), IRA or 403(b) - Must show that income will continue for at least three years after closing.
Schedule K-1 income - Require two-year history of receiving guaranteed payments.
Employment income - Must show proof of consistency for at least two years.
Bonuses, commissions and overtime pay - Must show proof of consistency for at least two years.
Do keep in mind that each source will have different requirement and must meet certain guidelines. Your loan officer will be able to address all your questions and concerns.
As always, thank you so much for stopping by. Remember, if you are thinking of purchasing your first home, please contact us. We are here to help. We have been helping Houston first time home buyers since 2011 and we can help you. I hope you have an amazing day. Until next time...Diana
