Which type of income cannot be used or is a reason to decline a mortgage?

Which type of income cannot be used or is a reason to decline a mortgage?

• A. Annuity
• B. Part time income last 24 months
• C. Social security and/or public income source
• D. Intermittent or seasonal income

Answer: (D)

Income that lenders can rely on must be stable, ongoing, and likely to continue for the life of the loan. Intermittent or seasonal earnings fail to meet that standard because they rise and fall with the season and can disappear when the busy period ends. Without a documented pattern that shows these fluctuations will continue year after year, there’s a real risk the borrower won’t have enough income to cover the mortgage in the future. That’s why seasonal or intermittent income is not counted as qualifying income and can be a reason to decline or to require the borrower to show other stable income or reserves. Other income types tend to be considered more reliable: annuity payments can be counted if they are guaranteed and documented, since they provide a predictable benefit over time; part-time income can be used if there’s a stable, documented history (often 24 months) that it will continue; Social Security or other public income is generally treated as stable, non-employment income and can be included in qualification.

Income that lenders can rely on must be stable, ongoing, and likely to continue for the life of the loan. Intermittent or seasonal earnings fail to meet that standard because they rise and fall with the season and can disappear when the busy period ends. Without a documented pattern that shows these fluctuations will continue year after year, there’s a real risk the borrower won’t have enough income to cover the mortgage in the future. That’s why seasonal or intermittent income is not counted as qualifying income and can be a reason to decline or to require the borrower to show other stable income or reserves.

Other income types tend to be considered more reliable: annuity payments can be counted if they are guaranteed and documented, since they provide a predictable benefit over time; part-time income can be used if there’s a stable, documented history (often 24 months) that it will continue; Social Security or other public income is generally treated as stable, non-employment income and can be included in qualification.