Public Assistance Income
The following table provides verification requirements for public assistance income.
|✓||Verification of Public Assistance Income|
|Document the borrower’s receipt of public assistance income with letters or exhibits from the paying agency that state the amount, frequency, and duration of the benefit payments.|
|Verify that the income can be expected to continue for a minimum of three years from the date of the mortgage application.|
The Housing Choice Voucher Program (more commonly known as Section 8) is also an acceptable source of qualifying income. There is no requirement for the Section 8 voucher payments to have been received for any period of time prior to the date of the mortgage application or for the payments to continue for any period of time from the date of the mortgage application.
|✓||Verification of Section 8 Payment Vouchers|
|Determine from the public agency that issues the vouchers the monthly payment amount and whether the income is nontaxable.
If the income is nontaxable, the lender can develop an adjusted gross income for the borrower. See B3-3.1-01, General Income Information, for additional information.
For additional information, see B3-3.1-09, Other Sources of Income.