Sources of Income That Can Be Used for Qualification

The following souces of income can be used when you apply for a mortgage. We also explain the kinds of verification that is needed in each case.

Salary:

Income earned from any kind of salary, monthly, weekly or hourly is acceptable. Two to three years employment history is required by most financial institutions. If you are employed on a part-time basis, your Mortgage specialist will require three years worth of Notices of Assessments to verify your average annual part-time earnings.

Commission and bonus:

This is a tough one. Commissions and bonuses may be used to qualify for your mortgage if you can proof that it is ongoing and persistent. To verify this, your mortgage specialist will take the average of the last two or three years of earnings shown on your tax returns. He or she may also require the year-to-date earnings from the written verification of employment or pay stubs. The reason they need this is to determine if these earnings are likely to continue in the future, and how much.

Self-employment income:

With Self-employed earnings, the average income earned through self-employment for the last three years as declared on the applicant's tax returns, will be used. In some cases the year-to-date earnings from a profit and loss statement of the business will also be considered. Because of the diversity of self employment opprotunities, you mortgage specialist will need as much supporting documentation as possible to determine and verify your earnings.

Other Income:

Revenue earned from rental properties, interest, pensions, and social security can be used, as long as it can be verified and it will carry on long into the future. The verification that most financial institutions require for these types of earnings is usually personal tax returns.

Incomes that cannot be used for qualifying includes the following: One time gifts, nor is occasional overtime, a single bonus from your employer, unemployment benefits or other insurance's that has an expiration date.

If you need more information on qualifying income, please contact us.

If you would like to learn more about the application process, please feel free to do so.

If you have questions about how to get a pre-approved mortgage, please do so here.

Home