Using Social Security Income When Applying for a Mortgage
If you are applying for a mortgage, and you receive social security income, many lenders will allow you to use this income towards qualifying for your loan. However, according to Fannie Mae, there are some requirements which you will need to meet.
If you receiving retirement or long term disability social security income, in order to use it as income towards your home loan, it cannot have an expiration date. However, if you are receiving benefits on the behalf of a family member, this income may be used as long as there is documentation that confirms the remaining length of this income is at least three years from the date of the mortgage application. For example, if a borrower is eligible for benefits from a spouse or a dependent.
If you are plan to use social security income towards your mortgage loan there will also be some required documentation you will need as well. Whether you are receiving retirement or disability benefits on your own behalf you will need: the social security administrator’s award letter and a proof of current receipt. If you receive benefits on behalf of someone else you will need the award letter, proof of current receipt and documentation of a three-year continuance.
If you plan on using social security benefits towards your home mortgage loan, contact us below or at 708-531-8388.