Social Security income can often work in your favor when applying for a home mortgage. Stated income loans offer less stringent underwriting guidelines and can be perfect for borrowers with low income but high cash reserves, investment portfolios and retirement funds, or people who have non-traditional or hard-to-document sources of income. How To Calculate Social Security Income. If your spouse does work, they will be collecting their own Social Security Benefits post-retirement, so do not check the Married box in this case. His professional career includes stints as a computer tech, information editor and income tax preparer. How to Convert Conventional Loans Into VA Loans, How to Qualify for a Fifteen Year Fixed Rate Mortgage, Federal Housing Authority: Important Changes to FHA Loan Rules for Income Verification, Mortgages by Mark: Qualifying for a Mortgage with Social Security Income, Social Security Administration: My Social Security -– Sign In or Create an Account, How to Register a Mobile Home in California, How to Look Up a Certificate of Occupancy, Mortgage Pre-Approval Income Verification Requirements, Mortgage Income Requirements for the Self-Employed. Request a call back or email us your questions! is not a lender or a mortgage broker. © Copyright 2020 Hearst Communications, Inc. If you don't have a copy of the SSA-1099 form, you can request one by phone at the same number used to request the letter, or you can go in person to your local Social Security office. Including a spouse increases your Social Security Benefits by 1.5 times your individual estimated benefit. It takes less than 5 minutes to get a quote. You also can request a letter by visiting your local Social Security Office, or by calling 800-772-1213 between 7 a.m. and 7 p.m. Eastern time, Monday through Friday. We do not engage in direct marketing by phone or email towards consumers. One of these forms of documentation in order to prove social security revenue is likely to continue: And we ask for B: Contact our support if you are suspicious of any fraudulent activities or if you have any questions. Please note, the calculator makes the assumption that you have enough credits to qualify. Your most recent bank statement showing all recent direct deposits from the Social Security Administration. And the monthly social security check is $1,000. Click Calculate and you will see your result – for example "Social Security may provide $21,000. $2000 X .25% = $500. He holds a Bachelor of Arts in journalism from Texas A&M University. In less then 5 minutes. All rights reserved. Working hard during our adult years gives us many benefits to look forward to, and one of those is our Social Security Benefit. Lenders allow for the income of $1,000 to be grossed up by 15% or $1,150. After all, your retirement years are an excellent time to do all of the amazing things you never got the chance to do before. Simply click View Report and scroll down, after putting all of your information into the calculator. Thinking ahead is important. The letter will show what type of benefits you are receiving, along with your monthly payment amount. Retirees are often the perfect candidates for a type of mortgage called a stated income loan. Make a copy of your most recent bank statements that show you are receiving the Social Security payments. If you’d like to acquire a stated income mortgage loan, and you’re currently on social security, get out in front of the challenges by learning how to track and calculate your social security revenue. If so, you may have found it difficult to acquire a mortgage loan. $2000 + $500 = $2500. today. When applying for the mortgage, you should document the amount of the income and provide verification that the benefits are likely to continue in the future. It will be sent by mail. Social Security is based on a sliding scale depending on your income… is a website that provides information about mortgages and loans and does not offer loans or mortgages directly or indirectly through representatives or agents. is not responsible for the accuracy of information or responsible for the accuracy of the rates, APR or loan information posted by brokers, lenders or advertisers. is a news and information service providing editorial content and directory information in the field of mortgages and loans. Social Security is based on a sliding scale depending on your income, how long you work and at what age you retire. Working hard during our adult years gives us many benefits to look forward to, and one of those is our Social Security Benefit. Let us help you: Generally, our salaries increase steadily as we progress through our working lives, adapting to ever-changing needs. Retirees often find that their debt to income ratio is not up to conventional lending standards, or that their social security income is difficult to track. You will first need to create an account, and then request the letter. Mortgage Loan Directory and Information, LLC or does not offer loans or mortgages. Social Security benefits automatically increase each year based on increases in the Consumer Price Index. You will need to run the calculator separately for their income in order to ascertain your total. For some banks, this may be all the documentation you need. Calculators; Social Security Benefits Calculator; Social Security Benefits Calculator. One of these forms of documentation in order to prove the amount of social security income: If a borrower can provide one of the required documents from Group-A, no additional documentation will be needed from Group-B. Social Security income can often work in your favor when applying for a home mortgage. All you need to do is input some basic information and the calculator will give you estimated figures based on these figures. Make a copy of your federal tax return for the previous year, along with the SSA-1099 form showing how much you received in benefits that year. It’s kind of the same for income from a job. To get an accurate picture of your joint situation, it is best if you calculate your benefits separately and add them together afterwards. Home Equity Loan & HELOC Payment Calculator, Coronavirus (COVID-19) & Home Loans Guide, 401(k) Net Unrealized Appreciation Calculator, Beneficiary Required Minimum Distributions, Individual 401(k) Contribution Comparison, Required Minimum Distributions Calculator, Required Minimum Distributions for Current Yr, Retirement Contribution Effects Calculator, Input your current age and the age you expect to retire, either by typing directly into the white boxes or by using the sliders, Add your current annual income and the average percentage by which you expect it to increase throughout your working life, Unless you know otherwise, leave the Expected Rate of Inflation box as it is. While the monthly checks don't amount to a fortune, the lender knows the income is a sure thing as long as you remain eligible for benefits. Obtain a benefit verification letter from the Social Security Administration. If you are married, and your partner does not work, tick the box to indicate this. When we help our retired clients acquire a stated income loan, we ask for the following documentation of their social security benefits: We ask for, A: ", Would like to know whether your current salary is sufficient to support your lifestyle after you retire, Are thinking about potential retirement ages and would like to know how that will affect your post-retirement benefits. For more on those click here. Alan Sembera began writing for local newspapers in Texas and Louisiana. If you believe that this does not apply to you, or you would just not like to count on it, you can just type 0% for this box, or a smaller amount such as 1%. This is to support people whose spouses do not work and therefore have no Social Security Benefit of their own. If on the other hand your spouse does work, they will be entitled to their own Social Security Benefit. And their only income source is social security. You can request a copy at the Social Security website (See Resources). If you’re a retiree currently enjoying social security benefits, and you’re in need of a mortgage loan, contact us at MortgageDepot. Not sure where to start? Research and careful planning are vital tools at our disposal while we prepare to enjoy a well-earned retirement. A copy of your social security benefits statement (The SSA 1099/1045 form) A copy of your federal tax returns. What better way to ensure you are able to take advantage of this than by being as informed as possible about your future financial situation? Another highly useful feature of the Social Security Benefits Calculator is the ability to see what your monthly and yearly amounts will be depending on the age you retire.