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Should temporary disability income be listed when applying for a mortgage?

I have income coming in monthly from a disability policy which will pay me for another year and a half. I am trying to get a loan in order to purchase a house.  I listed my Social Security Disability income but did not list the personal disability income because it will end in September of 2012.  Would this income help me secure a mortgage loan? 
  • February 04 2011 - US
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Answers (6)

Profile picture for user2186793
I was in a divorce and moved out. My husband was applying for a modification based on the loss of my income, however we have since reconciled and I have moved back in.
I am on temp disability and expect to be on it for about 3-4 months.            ( $611.00 weekly ). I have called the mortgage company to update them and my question is will this ruin our chances of lowering our mortgage rate via modification? Will they now factor in my disability income?
My husband makes gross 2400.00 a month, our interest rate is 5% with a month mortgage/tax payment of 2625.31, and we are a family of six.
Thanks for any help
  • February 13 2013
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Profile picture for Ritaq
my husband needs to go on a temparary disability for 3 month can we still buy a house during that time ??
  • December 09 2012
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Disability income must continue for the next three years inorder for it to be count as income when applying for a mortgage.  From what you have presented it can not be used.
  • February 04 2011
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In order to count it, it must continue for at least three years.  If your ratios are tight, it could be considered a compensating factor. 
  • February 04 2011
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If it is only being  paid out for the next year and a half, it will not count.

'Expect' to receive for 3 more years is usually the minimum requirement to be able to utilize such income for qualification.
  • February 04 2011
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Most likely not because it will n ot continue. Tell your LO about it though. They will be able to tell you what can and cannot be used.

All the best!

  • February 04 2011
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