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New here .I am a rep payee for my 2 children whom both receive survivors benefits.I want to know if when my older child becomes closer to the age of 18 can I apply for survivor benefits for myself or will I just receive benefits for my other child under 18 .Also will banks accept one receive SS and this helps provide for the children so when applying for a mortgage the bank should not factor in such a large percentage for supporting dependents.Banks have a formula and I hope I can use the childrens SS as extra income to help serviceability of the loan .
Hope this makes sense .
I was informed by a bank they wont accept SS as it finishes when the child reaches 18 .eg loan is for 20 years SS stops in 4 years for one child so the banks dont bother to count SS when figuring borrowing capacity they just calculate figures on my income alone plus 2 dependents.
I think you need to talk with another lender for another opinion. Child support counts as income to qualify for a mortgage, the social security should also count. There are some people whose only income is social security and they can buy houses showing that income.
At the time of closing, all forms of income must continue a minimum of 3 years. So, if your child is 15 and 1/2 years old and the benefits stop at age 18, you cannot count it. This includes not only SS benefits, but child support, alimony (with a deadline), note income, any income with a deadline.
The good news, though, SSI and child support are tax-free and can be grossed up to a taxable equivalency. (Alimony and Note income is taxable).
And for those on the other end, paying alimony, Fannie just announced a new and improved calculation. You can now take the monthly alimony paid off the top of the income if it benefits the borrower. So, if the alimony is $1000 and the borrower makes $8500 a month, you can either use the income at $8500 with a $1000 debt, or, count the income at $7500 and no debt.
Also, Fannie reversed themselves on student loan debt, will now take ratios up to 50% (no longer must be specific comp factors and extended beyond HomeReady).
Deja vu. We've been here before.
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