While qualification guidelines can vary widely depending upon an individual lender's guidelines, your credit and asset base, and the sort of loan you are seeking . . . there are some good general guidelines for qualifying income:
Most underwriters/lenders/banks want to see that the income that you are using tro qualify will reasonably continue (or should be expected to continue) for 3 years or more. If you have SSI income for a dependent child that is 5 years old, and the income is reasonably expected to continue until the child reached 18 or longer, this income can be included in your calculations (and may even be adjusted up due to tax free status). If the child is 17, the underwriter will likely not include it unless there is documented proof (college doesnt always count) that the income will continue into the child's legal adulthood (for instance, the child is disabled and will remain dependent on you in a legal sense).
Unemployment can sometimes be counted as income if it is customary and has a documentable history in your line of work - for instance, some tradesmen and women work an 8 month season when the weather allows and get "laid off" during every off-season to collect unemployment until they can be rehired. If you have a 2 year plus history of this pattern, the underwriter may allow you to qualify with the unemployment income and a letter from your employer indicating that you are eligible for re-hire in season.
On the flip side, if the layoff is due to the economy or job conditions and there is no promise of re-hire, you will generally not be allowed to qualify, as unemployment benefits are time limited in most cases and cannot be expected to continue for 3 years or more.
My advice would be to speak with several knowledgeable loan officers in your local area regarding your income situation and get their expert opinions of available loan products. Gather all related paperwork upfront, and make a good case for your expected income over the next few years. A good, experienced loan officer will be able to count every possible allowable dollar you make on your behalf.
Answer Submitted on Mon, Jul 20 2009
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