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Gross income

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rileydude
Valued Member

Gross income

Happy Thanksgiving to all,
I am wondering how lenders will calculate income requirements for DTI purposes. I am a retired, 100% permanent and total disabled vet who also qualified for SSDI. I do not work and all my income is well..tax free, so not really gross income. I am looking at purchasing a house next year and maybe some.of you experts can explain to me how net income would be handled.
Data is live in Texas
I have a total NET income from DoD, VA and SSDI of $6900 every month, it is stable income as no further re-evaluations are required by VA or SSA for my disabilities and retirement is of course stable income.
Any insight would be appreciated.
6 REPLIES 6
Mortgage-Specialist
Established Contributor

Re: Gross income

Not only will the gross be used but also all non taxed income will be actually grossed up by 25%. You're gonna be in better shape than you thought
Message 2 of 7
rileydude
Valued Member

Re: Gross income

 
Message 3 of 7
rileydude
Valued Member

Re: Gross income

Thank you, this helps to figure out the numbers lenders will work with, so to be clear..they will use my $6900 net income, apply 25% to it and estimate a gross income of $8625?
Message 4 of 7
Mortgage-Specialist
Established Contributor

Re: Gross income

Disability income grossed 25% but pension usually is not because pension is usually taxable income
Message 5 of 7
rileydude
Valued Member

Re: Gross income

Thank you again...so it would be my SSDI and my VA disability compensation. That helps alot...happy Thanksgiving again!!
Message 6 of 7
Mortgage-Specialist
Established Contributor

Re: Gross income

Then yes, your math is correct. Happy Thanksgiving
Message 7 of 7
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