Types of Alternative Income That Can Help You Qualify for a Loan in Virginia
Are you in a pickle because you’ve found your dream home in Virginia but do not have enough monthly household income to qualify for a mortgage? Don’t worry since there are ways to boost your monthly income by enough to help you qualify for the mortgage you need.
However, keep in mind that there are two keys to using alternative forms of income.
First, you must document every type of income you plan to use to qualify for the loan. Second, your total monthly debts, including your estimated new mortgage payments, should equal no more than 43% of your gross monthly income. If you meet both requirements, you can qualify for a loan without breaking a sweat.
Now, you must be wondering what type of income you can use to apply for a home loan. In this article, we will look at these four alternative sources of income you can use to get a loan.
Disability Benefits
If you’re receiving long-term disability benefits, you can use this income to qualify for a loan. However, you need to provide a copy of your disability policy or benefits statement to your lender. The majority of long-term disability payments don’t have expiration dates, but you must verify that the income will continue.
Get in touch with a DC area mortgage broker if you need help qualifying for a loan.
Investment Income
You can use interest payments and dividends from your investments for mortgage qualification. You must provide your lender with documents that show you have received interest payments and dividends from your assets during the last two years. Lenders will typically average your investment income during the past two years and use it to help you qualify for the mortgage.
Call or message our loan officers for inquiries about getting an investment income mortgage loan.
Alimony & Child Support
If you get alimony or child support, you can use it to qualify for a loan in Virginia. However, you must provide documentation that your alimony payments will continue for the next three years. You’re also required to show proof that the payments have been coming each month at their scheduled time for at least six months. Lenders want to ensure that future payments will arrive on time and that you won’t have a hard time making payments.
Contact a mortgage broker in Virginia if you’re ready to apply for a mortgage.
Rental Income
If you own a rental unit, you can use the monthly rent payments for mortgage qualification. You’ll need to obtain documents of your tenant’s residency and provide documentation of the income for at least the last 12 months.
Ready to Get Started?
With The Mortgage Option, you can use all these alternative incomes to qualify for our loans. We’ll guide you throughout the mortgage process and ensure that you’ll get approved for the best loan available. Give us a call today!
* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.