Borrower is S/E but tax returns only support about $267 in income. The borrower is 67-68 and has not yet applied for his SSI benefits, however, he did call and has a case # and can get confirmation of his application. The question is regarding his receipt of the SSI income. He will most likely not get his first check until mid-November and it probably won’t be a full check, per the LO. The loan is trying to close by the end of November. Will the case #, Confirmation of application for SSI and a partial check be enough to close the loan? In addition, the LO stated that the Borrower has enough cash to buy the house, however, is wanting to do a reverse mortgage to purchase this new build.
3.60 Expected Income
Expected Income refers to income from cost-of-living adjustments, performance raises, a new job, or retirement that has not been, but will be received within 60 Days of mortgage closing. The mortgagee may consider Expected Income as effective income except when expected income is to be derived from a family-owned business.
The mortgagee must verify and document the existence and amount of expected income with the employer in writing and that it is guaranteed to begin within 60 Days of mortgage closing. For expected retirement income, the mortgagee must verify the amount and that it is guaranteed to begin within 60 Days of the mortgage closing.