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jschwartz
630 Posts |
 Posted - 06/05/2008 : 5:33:03 PM
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Can someone familiar with FHA tell me if USPS retirement, disability and trust income can be "grossed up" for FHA income calculation purposes?
Thanks! |
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MisterVA
6635 Posts |
Posted - 06/05/2008 : 5:33:43 PM
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| If income is non-taxable, yes. If it is taxable, no. |
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EquitySmart
1240 Posts |
Posted - 06/05/2008 : 5:51:26 PM
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| FHA allows you use 125% of any non-taxable income when calculating debt ratios |
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jschwartz
630 Posts |
Posted - 06/05/2008 : 5:55:02 PM
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| Since just asking the borrower doesn't work, is there a rule of thumb to use for these types of income? For example, technically some of SSA can be taxable, but we generally can and do gross it up without the benefit of asking for 1040's. |
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MisterVA
6635 Posts |
Posted - 06/05/2008 : 6:06:27 PM
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| The only sure way to tell is by looking at the 1040. I usually ask the borrower if any of the income is non-taxable. Award letters may reveal that info as well. |
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Mandyvilla
3453 Posts |
Posted - 06/05/2008 : 8:21:10 PM
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Agreed, you need to pull the 1040. Both non-tax and taxables will be broken out. Most of the disability incomes I have seen are non-taxable.
If you don't get the tax return, you are taking a blind shot on a dart board. Get the 1099s (and 1098)s, as well as, any W2s. |
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jschwartz
630 Posts |
Posted - 06/05/2008 : 8:33:20 PM
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| Thank you all! |
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