Does This Count As Income? My Husband and I are about 6 weeks away from buying our first home. Well... on 4/13/07 he was laid off and next week we are going to start the loan process. Can his unemployment benefits count as income for the loan?
2007-05-07 11:00:10 · 5 answers · asked by iamfiesty74 1 in Business & Finance ➔ Renting & Real Estate
Don't give Marty, the Premier Loan Shark any information. He is running a scam. Yahoo keeps booting him, but he just signed up again.
It will count if it is actually expected in his industry (like construction). If this is not typical he has a few weeks to find another job.
2007-05-07 11:46:02 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Unemployment income won't count in determining whether you can qualify for a mortgage. You probably will have three options: 1) try to qualify only on your salary, 2) apply for a no-doc loan where you don't have to verify your income (usually for a substantially higher interest rate) or 3) wait until he has a job again to buy the home.
I HIGHLY recommend option 3- it makes no sense to sign up for a major financial commitment when your financial situation is unstable, and one partner being jobless is definiely financially unstable in the lender's eyes.
2007-05-07 12:18:56 · answer #2 · answered by Heather H 2 · 0⤊ 0⤋
Dajavu for me reading this one.
Sorry about your situation and your husband loosing his job.
My ex and I had just finished building our home when two weeks before we were meant to move in he lost his job and had to go on unemployment benefits. That was quite a few years ago now but it is very hard and stressful all the same.
O.K. YES! Your husbands unemployment does count as income. Any monies received for wages, income, substitute income i.e. unemployment benefits, workers compensation, income protection insurance payments all for under the section of 'income'. This is monies you receive as an income substitute until you either obtain a job or you are able to return to the workforce.
Good luck.
We survived, barely but did well and it wasn't too long before we were able to get ontop of the loan.
P.S. We told our bank immediately about the loss of income and they went out of their way to help us make smaller repayments, etc., from the start to help us also for themselves. Banks and financial institutions do not want to foreclose on properties. It costs them money.
2007-05-07 11:20:32 · answer #3 · answered by Life of wisdom 2 · 0⤊ 0⤋
No, not unless he has a history of season layoffs. You may not qualify for financing until such time as he is again employed.
Investor guidelines specify that for income to be counted it must have a probability of continuance for a minimum of 3 years.
2007-05-07 11:11:03 · answer #4 · answered by mazziatplay 5 · 0⤊ 0⤋
No. The unemployment compensation will run out long before the mortgage is paid off.
2007-05-07 11:07:47 · answer #5 · answered by regerugged 7 · 0⤊ 0⤋