Is disability,SSI,public assistance income, foster care income or other forms of non-taxable income acceptable for qualifying?

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All such forms of income may be considered as effective income if the FHA mortgage lender can document the stability of the income and its likelihood of extending for at least (3) three years of the mortgage. In addition, if a particular source of regular income is not subject to federal taxes, the amount of continuing tax savings attributable to the non-taxable income source may be added to the borrower's gross income. The percentage of income that may be added may not exceed the appropriate tax rate for that income amount, and no additional allowances for dependents are acceptable. The lender must document and support the adjustments (the amount the income is ''grossed up'') made for any non-taxable income source. The lender should use the tax rate used to calculate last year's income tax for the borrower. If the borrower is not required to file a federal income tax return, the tax rate to use is 25 percent.

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