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Retirement income questions?

I only have a tax free retirement pension. I know that for FHA uses gross income to calculate rations. Having only a net income due to the tax free income, will these ratios increase? by lynn.rae7836 from Raiford, Florida. Sep 25th 2015 Reply


Your income will be grossed up a as it is non taxable income.

Sep 25th 2015
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,659 contributions

Your ratios will not increase, but lenders are allowed to add 25% to your "after tax" income.. this is called "Grossing up" your income.. FHA will allow expanded ratios which FHA just changed earlier this month.. You are now limited to a maximum of 50% Debt to income using your "Grossed up" income for qualifying purposes.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Sep 25th 2015
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Sara Deere (Saraloveshomeloans)
#1 ranked lender in Kansas - 538 contributions

Are you trying to obtain a reverse mortgage?

Sep 25th 2015
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Craig Prickett (cpmtgnow)
#160 ranked lender in Florida - 97 contributions

Im not so sure the Pension income is grossed up 25%. Social Security "may" be grossed up from 15% to 25% but it depends on review of your tax returns and whether or not any portion of your social security was taxed. Also I have even seen lenders not gross up social security because it wasn't entered on page 1 of 1040. Im in Florida and fully licensed to do loans in Florida. You can call me or submit your prelim application at my web site www.firstfloridafin.com

Sep 25th 2015
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Stephen McWilliam (StephenMcWilliam)
#137 ranked lender in Florida - 45 contributions

Non-taxable income is grossed up as has already been suggested. Please feel free to call me as I'm located in Florida and can assist you in determining your accurate ratios considering this non-taxable income.

Sep 25th 2015
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