Kentucky Mortgage Lender

Using a Pastor / Minister’s housing allowance to qualify for a mortgage Member of the Clergy Income for A Mortgage Loan Approval  Where a borrower is a member of the clergy, all of the following will be required to document income: 1) Most recent year full tax return, 2) Most recent pay stubs, 3) W-2s, 4) Contract from the church to determine benefits. The IRS looks at the housing allowance portion of a pastor’s income as an exclusion from income.  Therefore the housing allowance is not reported on the personal tax returns as taxable income.  Even though it is not reported on the tax returns, a pastor’s housing allowance can be used in qualifying for a mortgage loan to purchase or refinance a home.   As long as we can document the receipt of the housing income through a signed letter from the church/employer stating the actual breakdown of the pay and by providing copies of the checks received, we should be able to count the housing allowance as incom...

Using Non-Taxable Income To Qualify For A Kentucky Mortgage Loan Many Kentucky homebuyers rely on non-taxable income such as child support, Social Security, or workers compensation. The good news: in many cases, these income sources can absolutely be used to help you qualify for a mortgage in Kentucky, as long as they meet the agency rules and documentation requirements. Non-Taxable Income Types That Can Be Used The following non-taxable income sources are commonly allowed for mortgage qualifying in Kentucky, subject to program rules: Child support Social Security income (retirement or disability) Workers compensation (long-term or permanent) Other verified non-taxable income documented on tax returns or award letters The 3-Year Continuance Rule To use non-taxable income for qualifying, lenders must be able to document that the income is likely to continue for at least the next three years from the d...

 Foster Income for a Kentucky Mortgage  Yes, if it can be documented that foster care income has been received for the last 2 years that income is likely to continue for at least 3 years from the date of the Note, then it can be used to qualify.  Yes, we need to show 24 months receipt of this income, possible exception if only received for 12 months, and we would need something from the agency showing this will continue for 3 years. Foster-Care Income for a Mortgage Loan Approval What are the guidelines? Income received from a state- or county-sponsored organization for providing temporary care for one or more children may be considered acceptable stable income if the following requirements are met. ✓ Verification of Foster-Care Income Verify the foster-care income with letters of verification from the organizations providing the income. Document that the borrower has a two-year history of providing foster-care services. If the borrower has not...