Income requirements differ for Jumbo, FHA, VA, and Conforming Loans.
Why is this important? Here’s what you need to know for divorcing clientele:
- Employment income must have a 2-year work history for qualifying purposes.
- Spousal support income must be seasoned and must show continuance. Support income must continue for at least 2 years from the loan application date.
- If support income decreases each year, we must use the 3rd year stated amount for qualification purposes.
- Self-employed borrowers must have 2 years of self-employed income documented with federal tax returns. Income is derived from tax returns. Too many tax deductions could hurt the chances of qualifying.
- If using child support to help qualify, this can be grossed up by 25%.
- If the borrower is paying alimony, employment income can be reduced by the amount of alimony as opposed to showing it as a liability. This helps with debt-to-income ratios.
Contact Jan or CLICK HERE to schedule an appointment with me to learn more!