What income counts for an FHA loan?
FHA can use steady income that you can document and that is expected to continue. This may include salary, hourly pay, overtime, bonuses, commission, self-employment, Social Security, pension, disability, retirement income and eligible child support or alimony. Two years is common for variable income, but some overtime or bonus income may qualify with at least one documented year when it has been earned consistently and is likely to continue. Each income type has its own rules.
What this actually means.
Documentation requirements vary by income type. W-2 income: pay stubs + W-2s + verification of employment. Self-employed: two years of personal and business returns + year-to-date P&L. Social Security: award letter + most recent 1099 if applicable + bank statements showing receipt. Pension: award letter + bank statements. Disability: SSDI award letter, VA disability award letter, or other private disability documentation. Child support / alimony: court order + 6–12 months of documented receipt + 3+ years of remaining duration. Non-taxable income (Social Security, some disability) can sometimes be grossed up by an underwriting factor (commonly 15–25%, lender-specific). Tip income generally needs two years of W-2 reporting. Subject to FHA/HUD guidelines and lender overlays.
What this looks like on a real file.
Where this can move.
Income type, employment history, debt ratio, reserves, automated underwriting findings, and lender overlays can change the answer.
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Educational only. FHA guidelines, lender overlays, rates, fees, and underwriting requirements can change. Final eligibility depends on full underwriting review. Mortgage Expert, Inc. is not affiliated with HUD, FHA, or any government agency.