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

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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. Social security recipients will use the initial award letter they received when they applied for benefits. In most cases the mortgage holder s bank or lending institution will require some form of income documentation to complete the mortgage refinance. You only need to receive your first paycheck before closing.

If a borrower receives 2 000 of social security disability then the mortgage lender will qualify the loan based on 2 500 of 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. Once you begin receiving social security benefits this income can be used to qualify. 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. 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.