Social Security, Retirement, Pension, VA Income

If you are currently retired and received social security, retirement/pension or VA income, you still can qualify for home loans.

What to provide: Most lenders accept the following documents to support income used -

  • Most recent 2 years 1099. If you receive retirement/pension income from multiple companies, remember to provide all of them to lenders.
  • Award letter. This is the best source of documentation┬áto provide and widely accepted by ALL LENDERS without requesting additional documentation.
  • Most recent 2 years tax return

In an event that all (or part) of your income received is non-taxable, you can always ask lender to gross up your qualifying income if your loan is running into a debt-to-income ratio issue. For example, if you receive $1500 in social security income and the entire income is non-taxable, lenders can gross it up by 1.25% and qualify you with it. In this example, your qualifying income will be $1875 ($1,500 x 1.25). Keep in mind, though, it must show up as a non-taxable income entirely (or partially) on your most recent tax return.

Any specific question on this, feel free to drop me a comment.

2 comments for “Social Security, Retirement, Pension, VA Income

  1. Missy
    at

    Hi, my only income is from fostercare, which is non-taxable income. Since the income is listed as non-taxable, I don’t file income tax. Would I still be able to get a home loan?

    • Underwriter
      at

      Absoluately. As long as you met the IRS rule for an tax exemption and are able to provide award letter/receipts to support income used for qualifying, you should be good to go. Again, document requirements varies by different lenders.

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