FHA - Expected/Future Income Guidelines
Updated: 08/28/2018
Article #: 126
Expected Income (TOTAL)
(1) DefinitionExpected 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.
(2) StandardThe Mortgagee may consider Expected Income as Effective Income except when Expected Income is to be derived from a family-owned business.
(3) Required DocumentationThe 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.
(4) Calculation of Effective IncomeIncome is calculated in accordance with the standards for the type of income being received. The Mortgagee must also verify that the Borrower will have sufficient income or cash Reserves to support the Mortgage Payment and any other obligations between mortgage closing and the beginning of the receipt of the income.
Original Question:
our borrower is relocating and wants to close before he starts his job (same line of work) What is the max time we can close before he starts his job? (30, 60 days?)
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