Many buyers don’t realize this, but if your income is non-taxable, you may qualify for more home than you think.
Social Security, disability income, and VA disability compensation can often be “grossed up” for mortgage qualifying. That means lenders are allowed to increase your qualifying income because no federal taxes are withheld.
In plain terms:
Your real buying power may be higher than what shows up in your bank deposit.
Here’s how it works in 2026:
• FHA allows income to be grossed up by at least 15%
• VA loans allow up to 25%
• USDA allows up to 25%
• Conventional loans (Fannie Mae / Freddie Mac) allow up to 25%
This can significantly improve debt-to-income ratios and turn a “no” into an approval when structured correctly.
Important reality check:
Grossing up income helps, but lenders still review credit, documentation, and overall stability. The numbers still have to make sense.
If your income comes from Social Security, disability, or VA benefits, don’t assume you won’t qualify. Run the numbers correctly before ruling anything out.
If you want to know what you actually qualify for — not a guess — reach out.
Call or text 502-905-3708
Joel Lobb
Mortgage Broker – FHA, VA, USDA, Conventional
NMLS #57916
