What types of income are suitable for obtaining a mortgage in Virginia?

To take out a loan in Virginia, you must prove you can consistently make loan payments. Lenders who offer mortgage services take a risk every time they lend money to borrowers. Lenders use a method called underwriting to assess mortgage applicants and estimate the potential risk of lending to them.

The more regular income a borrower has, the lower the risk they pose to the lender. What does “income” refer to in this context, and which types of income do lenders consider acceptable from homebuyers? Continue reading to learn about which types of income count towards mortgage qualification.

If you have questions about how to qualify for a mortgage in Virginia, contact our mortgage experts for help.

  1. Salary

The easiest approach to meet mortgage qualifications is by having a stable, long-term salaried position. Income verification is a piece of cake with an employment letter and recent pay stubs.

  1. Self-employed Income

Income verification when you’re self-employed is a bit trickier than having a stable salaried position. Lenders usually favor borrowers who provide tax assessments for two or more years. However, if you’re self-employed, expect to provide additional evidence of your income.

  1. Pension Income

If you’re getting ready to apply for a home loan but are concerned that your pension won’t qualify as an income source, there’s no need to worry. Your pension income qualifies similarly to any other income source since you receive it regularly.

  1. Disability Payments

If you get monthly disability payments because of a work-related injury and plan on buying a home in Virginia, you can use these payments as qualifying income. However, you must provide your lender with a copy of your disability policy or benefits statement to evaluate if you are eligible for disability, how much you receive, and how often your payments arrive.

  1. Tips

Supplemental income from tips can be included on your mortgage application if tips are common in your profession, as long as you declare it on your tax returns. This primarily applies to servers in the hospitality industry. If your tips are reported in your tax returns, you should submit them in your mortgage application.

  1. Child Support and Alimony

If you’re receiving cash from a divorce settlement through child support or/and alimony, then you can use it to qualify for your mortgage. However, you must provide documentation that your payments are scheduled to last for at least three years.

To guarantee that your future child support/alimony payments will be consistent and reliable, you must provide proof that you’ve received payments on time for the last six months. 


To sum up, many types of income can be used for mortgage qualification, from regular salaried employment to pension income and even child support payments. However, providing correct, verifiable information is crucial to guarantee a successful mortgage application process.

So what are you waiting for? Work with The Mortgage Option to help you navigate the process of using your income to qualify for a loan.

* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.

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