On a fixed or limited income? Here are a couple tips on how you can still qualify for a mortgage.

Given the recent downturn in the stock market coupled with the high inflation we have seen in the last couple of years people on fixed income are really feeling the economic pressure. On the other side some have more equity than ever before in their home due to the drastic rise in home values.?

The problem is that it can be hard to qualify for a mortgage if you have fixed income. Here are a couple of things you can do to get qualified if you have a limited and or fixed income.

Disclaimer- This information is based on Fannie Mae and Freddie mac guidelines which do not cover all mortgages and are subject to change

Here are 3 tips that can take you from not qualifying to being approved. ?

Pay off other debts within the new mortgage

By rolling other debts into your loan, you are lowering your monthly liabilities and lowering your debt-to-income ratio.

?Lay off credit card purchases a few months before applying

According to Fannie Mae guidelines- Credit Card debt must be considered part of the borrower's recurring monthly debt obligations.?The minimum payment will be used to calculate your monthly liability.

Know your income tax situation

Some forms of income are not taxable or taxed at a lower rate so it is possible that this income can be grossed up. For retirees their social security income is often not taxed in full if at all by the federal government. Gross up amounts are as follows

FHA- 15%

Conventional & VA- 25%

Be sure to work with a loan officer that is familiar with the guidelines because believe it or not some if not many will leave options on the table for lack of knowledge.

For more insider tips on real estate and finance?click here.

Benjamin Kell NMLS 2126313