If you get Social Security income, you might be able to gross up that income when applying for a mortgage. Grossing up means increasing the amount of your non-taxable income by a set percentage to match the pre-tax equivalent. This helps you show higher qualifying income, which can make mortgage approval easier.

How Grossing Up Social Security Income Mortgage Calculations Work

Lenders follow specific rules when grossing up Social Security income mortgage amounts:

  • Fannie Mae & Freddie Mac – Usually allow a 25% gross-up when tax returns are available.
  • VA Loans – Commonly allow a 25% gross-up with the right documents.
  • USDA Loans – Follow the same 25% guideline.
  • FHA Loans – Often use a 15% gross-up unless a higher rate is supported by IRS tax tables.

Grossing Up Social Security Income Mortgage Example

Let’s say you receive $1,500 a month in non-taxable Social Security income:

  1. Confirm the non-taxable amount – Check your award letter or tax return.
  2. Apply the gross-up percentage – $1,500 × 25% = $375.
  3. Add to your income – $1,500 + $375 = $1,875 qualifying income.

That $375 increase could improve your debt-to-income ratio and help you qualify for a higher loan amount.

Documents Needed for Grossing Up Social Security Income Mortgage

You’ll need to provide:

  • Your Social Security Award Letter (current year)
  • Most recent tax returns if available
  • Proof your income is non-taxable (IRS confirmation or award letter)

Why Grossing Up Social Security Income Mortgage Calculations Matter

A higher qualifying income can:

  • Lower your debt-to-income ratio
  • Give you more loan options
  • Help you get better rates and terms

Bottom Line:
If you receive non-taxable Social Security benefits, ask about grossing up. At North Star Mortgage Network, we help clients maximize their qualifying income so they can get the home they want.

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