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

Understanding how the income can be used to qualify for a mortgage as well as the documents required to qualify will help you when applying.

Can you get a mortgage if your only income is social security.

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. 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. Social security recipients will use the initial award letter they received when they applied for benefits. 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.

As a result that boost. Once you begin receiving social security benefits this income can be used to qualify. 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. If a borrower receives 2 000 of social security disability then the mortgage lender will qualify the loan based on 2 500 of 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 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. The social security administrator s award letter and a proof of current receipt.