Getting Approved with Only Dividend Income

[joeyv1985]

All,

Sorry if this has been discussed. If you live off the dividends of your investments(ie. Stocks, bonds, etc), how are lending instutions going to view that? Assume you have a Fico score of 700+. How much harder is it going to be to get a mortgage or an installment loan in general? Do they look at a couple of years of dividend income? Thank you in advance. 

[Mortgage-Specialist]

Underwriting will typically look at your last 2 years of tax returns and evidence of how much youve been paying yourself. They will view whether or not its consistent and view that you currently have enough of funds that would allow you to pay yourself for at least  3 years from the time of closing. 

[joeyv1985]

Thank you. It's pretty consistent with a typical mortgage application then: Income verification for the past 2-3 years. 

[donkort]

I would think that it would be similar to income you receive from working-----especially if it's consistent income, and assured income.