If you want to get a home loan in Minnesota you will need to document the income that you receive in order to qualify for the loan program.  If all or part of your income is received through the Social Security Administration, you will need to provide the following documentation:

Social Security Income Documentation

·   Your Social Security Award Letter,

OR

·     Your complete Bank statements covering the last 12 months reflecting consistent deposits

OR

-   Your last 2 year’s 1099 statements

In some cases you might also be required to provide your most recent 2 year’s federal tax returns which would be used to establish that your income was not taxed.  This can be a crucial part of your qualifying since we can “gross up” tax-free income. 

When we determine if a borrower qualifies or not in Minnesota, we utilize income and debt ratios as percentages of a borrower’s gross income.  Since tax free income does not require tax withholdings, we need to estimate what that income would be if it were to be taxed.  If it is not taxed we take your income and multiply by 125% before we calculate your income and debt ratios.  This might be what it takes to allow to you qualify for the payment you want.

When getting approved for a home loan, as a local Minnesota mortgage lender I will go over all of your financial documentation to make sure we make a fair assessment in terms of your qualifying power.