For some families, foster care income is an important and reliable source of family income. However, when it comes to qualifying for a mortgage, the rules for how to use this income differ depending on whether you apply for a conventional or conventional loan. federal housing administration loan. Here’s what you need to know:
basic knowledge
Foster care income must come directly from a state or federally funded organization to be considered mortgage-eligible income.
Conventional Loans (Fannie Mae and Freddie Mac)
- Freddie Mac: Requires a two-year history of receiving foster care income and proof that the income will continue for at least three years.
- Fannie Mae: Will accept 12 months of receipt history and will not be required to continue in the future. However, there is a limitation: Foster care income cannot exceed 30% of the borrower’s qualifying gross income.
FHA Loan
The FHA guidance is more flexible. They do not specify a minimum receipt history. Instead, the income must prove stable. The key requirement is that foster care income cannot be used to qualify if it expires within three years of ending.
touch Contact us and speak with a professional about how to get pre-approved for a mortgage. We offer a variety of mortgages programmeinclude Non-quality management loan Can fit any situation. We look forward to helping you obtain the financing that best suits your needs.
