Can I Get A Mortgage If I have Tax-Exempt Income?
August 31st, 2008 By Peter G. Miller
Lenders have a wonderful expression which explains how non-taxable payments are handled — they are “grossed up.”
This means that if you take in $1,000 in tax-exempt payments and state and local taxes are 17 percent, it would take an income of $1,204.82 to have a $1,000 income after taxes. The lender would compute the application on the basis of the $1,204 figure.
See lenders for specific practices.
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