Can You Get A Mortgage If Your Only Income Is Social Security

If the mortgage company requires the total debt not exceed 40 percent of the borrower s income then the borrower s total amount debt payments required including the house payment house taxes and insurance.

Can you get a mortgage if your only income is social security. The average social security benefit for a couple stands at a little north of 2 100 and banks seek to ensure that a mortgage is no more than 30 of monthly gross income. In most cases the mortgage holder s bank or lending institution will require some form of income documentation to complete the mortgage refinance. As a result that boost. This is usually a paycheck from a job or a w 2 form for income tax purposes.

The social security administrator s award letter and a proof of current receipt. Whether you are receiving retirement or disability benefits on your own behalf you will need. 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. This means that lenders can through a process called grossing up add an additional 25 percent to your social security income because you won t be paying income tax on this income.

Social security recipients will use the initial award letter they received when they applied for benefits. If a borrower receives 2 000 of social security disability then the mortgage lender will qualify the loan based on 2 500 of income. As an example if you earn 1 000 a month in social security your lender might count your social security income as 1 250 your 1 000 payment plus 25 percent.