Can you qualify for a mortgage if you're on workers compensation?

Question

I was wondering if workers compensation payments that I receive can be used as income on a mortgage application. My spouse has a full time job so we'll be using that income too. The only down side is I can't get a letter from my employer stating I'll have a job to come back to because I was off more than 13 weeks and my FMLA leave time ran out so I was let go and, I can't go back to the same line of work after my surgery.

Answer 1

Sounds like a pretty bad time to make a major commitment like a mortgage, don't you think? Perhaps you should returtn to work and figure out your budget, THEN look at buying a house.

Can you qualify on just your husband's income? If not, you might not get a very good rate if you get approved at all.

Answer 2

Depending on your credit score you have several options. the higher your credit score the better. You can do a stated income loan (state your spouse's income high enough - don't list anything for yours - you do not prove income by pay stubs, W2s, etc). You could state your normal income if your current employer would verify employment - the lender doesn't know you are on workers comp? With that option, you would have to make sure that whoever answered the phone to verify your employment gave the correct info - otherwise your loan is dead. The stated income 100% fffinancing loans - in this market you must have a 700 or above credit score. Another option is a No DOC loan (nothing listed for employment or income). The only problem with the NO DOC loan is usually you can only do 95% financing (you'd have to come in with 5% down if doing 100% financing plus closing costs & pre-paids - taxes & insurance). You have options, but due to the many foreclosures on the market lenders have tightened their guidelines. I'm a mortgage lender, so if you have any other questions, just let me know..

Answer 3

Only your spouses income is going to count. Workmans comp is a benefit, not income, and temporary. Since you are changing careers you need to wait 2 years to document that as steady income.