| Gross Income
Gross Income is that income you receive before anything is taken out of it. To get a mortgage we would need to include all income from whatever source.Some of the sources would include wages, social security benefits, child support,alimony, business income, interest, dividends, disability (including children' income ).
Gross monthly income is figured as follows:
Paid a salary weekly-Let's say your salary is $500.00 a week. You would need to multiply $500.00 times 52 weeks; Then divide by 12 months. $500.00 x 52=$26,000.00 a year divided by 12 months would equal $2,166.67 per month.
Paid every 2 weeks-Let's say you make $1,000.00 every 2 weeks. You would need to multiply $1,000.00 x 26 and divide that by 12 months. $1000.00 X 26 =$26,000.00 per year divided by 12 months would equal $$2,166.67 per month.
Paid hourly-Let,s say you make $15.00 per hour and work a 40 hour week. Then we would multiply $15.00 X 40 hours = $600.00 per week. Multiply this by 52 weeks and divide by 12 months. $600.00 X 52= $31,200.00 divided by 12 = $2,600.00 gross per month.
Income from overtime , part time employment, bonuses,etc. may be used when it can be determined that continuance is reliable. Usually to be counted there must be a history from these sources. An acceptable history would be 1 to 2 years depending which program we can use.
Non Taxable Income- Can usually be grossed up 25% due to the tax savings. This income must be verified and determined to continue for at least 3 years. An example of gross up would be if a child on SSI receives $400.00 a month. To gross this up multiply the $400.00 by 1.25 = $500.00 Gross per month.
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