Mortgage With Investment Income
Interest, dividends, and capital gains can count toward a home loan with a steady history. Fannie Mae and FHA each document it a little differently.
What you need to qualify
Each item below is a requirement of Fannie Mae, FHA, or at least one other program we offer.
- A two-year history of interest and dividend income on a Fannie Mae loan.
- Two years of tax returns or 24 months of account statements on a Fannie Mae loan.
- Proof you own the assets that pay the income.
- On FHA, two years of tax returns and the most recent account statement.
- Assets used for your down payment or closing costs subtracted before future income is figured.
- On Fannie Mae, for capital gains, a two-year history and assets that could be sold if more income is needed.
Dividends and interest count
Tax-exempt interest counts
Capital gains can count
Capital losses on Fannie Mae
FHA uses the lower average
Some programs say no
Can Investment Income Qualify For A Mortgage
Yes, when it has a steady history and the assets behind it are yours.
On a Fannie Mae loan, interest and dividend income needs a two-year history, documented with tax returns or 24 months of account statements, and the lender verifies you own the assets. Continuance does not have to be verified unless there is evidence the assets will run out.
Fannie Mae averages two years if the income is steady or rising and uses the most recent year if it is falling. Assets used for your down payment or closing costs are subtracted before future income is figured. Living on your savings instead? See our asset depletion loan page.
FHA counts interest and dividends from certificates of deposit, mutual funds, stocks, bonds, money markets, and savings and checking accounts, using the lesser of the two-year or one-year average. Capital gains on FHA need three years of tax returns to show a trend, and a steady capital loss is subtracted from your income.
Why choose Saxton for a mortgage with investment income
For borrowers whose income comes partly or mostly from their portfolio.
Dividends And Interest Count
Fannie Mae counts interest and dividend income with a two-year history and proof you own the assets.
Tax-Exempt Interest Counts
On a Fannie Mae loan where your tax returns are analyzed, tax-exempt interest counts as stable income if it has been received for the past two years and is expected to continue.
Capital Gains Can Count
Capital gains usually do not count, but Fannie Mae can use them with a two-year history and proof you own assets that can be sold. FHA needs three years of tax returns.
Capital Losses On Fannie Mae
On a Fannie Mae loan, capital losses on Schedule D do not have to be counted against you, even if they recur.
FHA Uses The Lower Average
FHA uses the lesser of your two-year average or one-year average investment income.
Some Programs Say No
At least one conventional loan option does not accept dividend or interest income, and at least one jumbo program needs that income to continue for three years after closing.
Hear From Homeowners Like You
Frequently Asked Questions
Straight answers about using investment income for a home loan.
Yes. Fannie Mae needs a two-year history and proof you own the assets, and FHA needs two years of tax returns and your latest statement.
Fannie Mae averages two years if it is steady or rising, or uses the most recent year if it is falling. FHA uses the lesser of the two-year or one-year average.
They can. Capital gains are usually treated as one-time income, but Fannie Mae can use them with a two-year history and assets that could be sold, and FHA needs three years of tax returns.
Not on a Fannie Mae loan. Capital losses on Schedule D do not have to be considered, even if they recur. On FHA, a steady capital loss is subtracted from your income.
Yes, on a Fannie Mae loan where your tax returns are analyzed, if it has been received for the past two years and is expected to continue.
On a Fannie Mae loan, assets used for the down payment or closing costs are subtracted before future interest or dividend income is figured.
On at least one jumbo program, yes, with a two-year history and three more years expected after closing. Money you need for the purchase is subtracted first.
Find out what you qualify for
Tell us how your portfolio pays you and what you want to buy, and we will show you the programs that fit.
Get Pre-QualifiedLoan amounts, rates, terms, and eligibility are subject to credit approval, asset and income verification, appraisal, and program guidelines. Draw requirements and variable rate terms apply. Program availability varies by state. Not all applicants will qualify. Saxton Mortgage, LLC is an Equal Housing Lender.