Can you use Non-taxable income like Child Support, Social Security, Workers Compensation to qualify for a Kentucky Mortgage Loan?


You can use child support, social security, and workers compensation as long as it will continue for the next 3 years.

On a note for Child support, you have to show you have been getting the last 12 months consistently to use that income.

Another favorable option in using non-taxable income, is that you can gross it up to 115% to 125% in most cases to show you have more qualifying income.

Fannie Mae, USDA, VA, Conventional loan programs will let you gross up the income by 125%.

For example, if you grossed $1000 a month, then on a VA, USDA  or Conventional  loan you could have a qualifying income of $1,250 to qualify for more of a house payment.

FHA will allow for 115% grossing up of non-taxable income. So on a $1,000 gross monthly income, the max income used to qualify monthly would be $1,150.00

Some lenders may create overlays to these agency guidelines, so keep that in mind.

It is best to use in most cases the lowest income to qualify in my opinion so just be on the safe side.


see chart below for FHA, VA, USDA, and Fannie Mae Conventional loan guidelines.

child support, Debt to Income Ratio, FHA Loans - Income Qualifications, income, non-taxable income,
child support, Debt to Income Ratio, FHA Loans - Income Qualifications, income, non-taxable income,