Profile picture for nativesd411

Need Lender who will Gross Up SSA based on Award Letter

1.  I need a lender who will Gross Up Income based on SSA Award letters.
2.  No other income just SSA Benefits, no Federal Tax Returns since yearly award is less than 25k
3.  Offer has been accepted on a duplex
4.  75k in reserves
5.  2 units, one owner occupied, the other will rent for $900
6. Loan Value - $160k
7. Conventional or FHA?

Please advise ASAP
  • March 23 2014 - San Diego
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Answers (11)

I have an option to help you do this and not have to have mortgage insurance up to 95% if you qualify also. Grossing up SSA is easy and common. Let me know if I can help.
 
  • April 09 2014
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The rule of thumb for being able to gross up income is just to be able to show that you have not had to pay taxes on it. This is very common and really shouldn't be an issue based on the information you have provided in your inquiry. You also should not have an issue being able to qualify using rent from the 2nd unit. Contact a Mortgage Professional as soon as you can that can meet your requirements and help you close on this property! If you have any additional questions or need help from someone who will take the time to navigate you through each step of the process, you are welcome to visit my Profile where you will find all of my contact information. All the best to you!!!
  • March 25 2014
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nativeds411, it shouldn't be a problem to gross up the income since it's not taxable.  It doesn't matter if you  file tax returns or not.  I just did an FHA loan for someone like this last year up in Central California and all we needed is a letter of explanation from the borrower stating the reason they do not need to file tax returns & we used 125% of the SS income per the award letter.  Duplex is fine, just 3.5% down would be needed.  If the other unit is rented out then we can use the rental income from the other side of the duplex as well.  Feel free to reach out to me through my profile and we can get something started tomorrow if you'd like.
  • March 24 2014
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I think that is going to be the problem. Without tax returns they don't have any way of knowing your SSA income is your only income, or if its taxable. 

I would think someone out there would be able to do this on an exception, however. I'd like to think that we would, but I couldn't say for sure. Its one of those things where the lender is going to have to see the whole picture and see if they can do it without tax returns. 
  • March 24 2014
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Profile picture for nativesd411
I have not been declined, 2 lenders 100% underwritten just waiting for an address.
I have been denied the Grossing Up of my SSA Benefits, when told they would be.
  • March 24 2014
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Profile picture for nativesd411
My SSA Benefits are not taxable.
My SSA Benefits are less than $25k
I have no other income.
Two lenders said they WOULD only Gross Up my income if Income Tax Returns were filed.
  • March 24 2014
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Profile picture for Arizona Mortgage Pro
Be careful with the conflicting answers you are receiving. Bucks County Banker is incorrect. Most lenders will gross up SS income to 125% if it is not taxed income and many times SS income is not taxed.

Here is a link to determine who is taxed on SS income:

http://www.ssa.gov/planners/taxes.htm

I hope that helps to clear it up. 

 
  • March 24 2014
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Profile picture for Mortgage Brothers
The only SSA income that can be grossed up is disability.  Other than that SSA income is taxable and cannot be grossed up.
  • March 23 2014
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Have you been declined, or at least been approved for less than you applied for, because of this already?

I ask because, generally speaking, most lenders are working with the same guidelines when it comes to FHA or Conforming-Conventional.

SSA income can usually be grossed up if you don't pay taxes. I would assume yours would be able to be grossed up except you did not file tax returns, so how would the lender know that you have no other income? Right? I assume that has already been an issue with at least one lender?

If so it is probably more of an issue of not being able to gross up SSA income, but not having filed tax returns. This would have to be is, based on what you are telling us your income should not be taxable and your SSA should be able to be grossed up.
  • March 23 2014
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There is a method as to how the Underwriter will gross up your income. We can give you up to 125%. Please feel free to contact me direct by clicking on my profile and shooting me a message. Please don't forget to leave your contact phone number. Many times when I reply from a Zillow questions, it goes into people's spam for some reason.


Best of Luck!
  • March 23 2014
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Profile picture for Primary Louisiana
Any lender should gross up the SSI if it is not taxed on your tax return.  Should be easy to find.  Good Luck!
  • March 23 2014
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