Can I use disability income for a conventional loan?
Yes. SSDI, VA disability, and private disability income are accepted as qualifying income with proper documentation. Non-taxable disability income may be grossed up by an underwriting factor (commonly 15-25%) to compare with taxable income — gross-up rules vary by lender.
Plain-English explanation
Documentation: SSDI award letter, VA disability award letter, or private policy documentation, plus bank statements showing receipt. Long-term disability with a defined end date below 3 years from closing usually doesn't count as qualifying income. Non-taxable disability income (most SSDI, VA disability) can be grossed up — check your lender's specific factor. Subject to Fannie/Freddie guidelines and lender overlays.
What can change the answer?
Documentation type, employment stability, year-over-year trends, and any recent job/business changes can change the answer.
Want the real answer for your conventional file?
Conventional guidelines are the rule. Your credit, income, DTI, PMI, LLPAs, and Florida payment math are what decide the actual answer.
More conventional questions on Income
Educational only. Conventional loan guidelines, lender overlays, rates, fees, PMI, LLPAs, and underwriting requirements can change. Final eligibility depends on full underwriting review.