Can structured settlement be used toward income when buying a home? How would they count it?

Answer 1

There may be some lenders who may consider using a structured settlement as a source of income when you are looking to buy a home. The biggest factors would be how long will the structured settlement last, how will the payments to you be in the structured settlement and what is the structured settlement from. This income would probably be counted as "other" income depending on the terms. You would be best off working with a mortgage broker to try and find financing for this type of income documentation.

Answer 2

Typically, your non-standard income would have to have a three year guaranteed continuance.  This is the industry standard for child support, disability and other forms of "temporary" income.  As mentioned in a prior answer, check with your mortgage broker to see what their lenders allow.

Answer 3

Generally if there is at least a 3 year continuance of the income you can use it.  It is ultimately up to an underwriter, but I have closed dozens of loans with that scenario.