Unless you have an extensive, multi-year track record, the lender is unlikely to count the proceeds from selling flipped homes as income when you apply for a mortgage. For example, your tax returns, bank statements or other documentation must demonstrate that you generate steady income from flipping homes. You are usually required to show a two year history of earning income, as evidenced by your tax returns, for the lender to include the income when you apply for a mortgage. Additionally, lenders typically use your average monthly income from flipping homes over the prior two years. So if your income increased significantly the year you apply for a mortgage, the lender may not give you full credit for the higher figure because your average income for the prior two years is lower. Additionally, if you have only flipped homes a couple of times and it is not your primary source of income, then lenders do not consider the income to be permanent or sustainable and will likely discount it or exclude it altogether when you apply for a mortgage. In this case the income may provide an extra nudge for your application but you will need to qualify for the mortgage based on other sources income such as from a job or steady self-employment.
Please note that you can use the proceeds from selling flipped homes as a source of funds for your down payment but to reiterate, lenders are unlikely to count the proceeds as income to help you qualify for the mortgage unless the proceeds have been a steady source of income over the prior two years. We provide a comprehensive overview of mortgage qualification requirements including your credit score, debt-to-income ratio, employment history and other factors. You can also use our mortgage qualification calculator to determine what size mortgage you can afford based on your monthly gross income and debt expenses.