Are you thinking about buying a home in Albuquerque, but not sure if certain forms of income will help you qualify for a loan? Lenders want you make sure you can repay your loan comfortably. They can determine this by comparing your monthly income with monthly debt. If you work for an employer or for yourself, this can be done by reviewing recent paycheck stubs, W2 forms and/or tax returns. But if you’re looking for additional income support to buy a home in Albuquerque, you may not be aware that there are other income sources that lenders can use.
If you are receiving spousal or child support, this income can be used to help qualify. There needs to be a record of timely payments, which can be shown by providing copies of bank statements showing the monthly deposits being made and when. Spousal support payments need to continue barring the ex-spouse receiving the income has not married. Child support payments typically continue until the child turns 18.
If you have any investments, the dividends and interest can also be used. This is providing that the income is shown to be consistent over the previous two years. Also, your name must appear on the statement. Any other names on the statement will cause the lender to divide up the income among all who appear on the investment account. Income is averaged over the previous 24 months in order to arrive at a qualifying amount.
If you are receiving disability payments due to an injury on the job, this can be used as well. This can be verified by reviewing a copy of the disability policy benefit statement. This income may also be used as long as the lender makes the determination the income will likely continue well into the future, for a minimum of three years. It can sometimes be the case that the disability is shorter term in nature, or the lender needs more information about the nature of the disability filing.
Social Security Income
In order for the lender to use social security income, all that is needed is a copy of the social security awards letter. A request for this letter is made directly to the Social Security Administration either by the borrower or the lender.
Like other forms of income, bonus income can be counted as long as there is a regular history of having received it. Bonus income should be both consistent and at regular intervals. Bonus income is averaged and should be paid monthly or sometimes quarterly. An annual bonus most often won’t be used. It’s thought that a holiday bonus in December may not be readily available in another time of the year. Verification of the terms of the bonus can be obtained directly from the employer.
Part Time/Seasonal Income
With a two year history of receiving part time income as well as seasonal work, such as during the holidays or during the summer, this income can also be counted when adding up qualifying income. The part time income should also be relatively consistent. Seasonal income may be counted, depending upon the lender’s internal guidelines, again with evidence of receiving it for the most recent two years and paid out in a consistent manner.