Can you use income from a note or loan to qualify for a mortgage?
For conventional mortgages, including Freddie Mac and Fannie Mae loans, guidelines typically require that borrowers provide two years of W-2s and two years of tax returns for most income sources, including income from wages, salary and bonuses. For income from a note receivable, however, borrowers are only required to provide the receipt of payments for the most recent consecutive twelve months (one year) to verify the income. Please note that income from a note must continue for at least three years for a borrower to include note income when they apply for a mortgage.
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