Grossing Up Your Income...What Does It Mean? What Income Can You Gross Up?

If income is eligible to be grossed up, here are the gross up limits; ·      Gross up to 25% on Conventional loans ·      Gross up to 15% on FHA loans ·      VA loans do not allow grossing up any income   The Following Income types never subject to taxes that can be grossed up with Conventional and FHA loans: * Adoption Income * Foster Care Income * Child Support Income * Military Income - Regular Military * Military Income - Reserves or National Guard * Supplemental Social Security Income - Received on Behalf of a Client * Supplemental Social Security Income - Received on Behalf of a Non-Client * VA Income Benefits - Service Connected Disability Compensation * VA Income Benefits - Non-Service Connected Pension * VA Income Benefits - Program of Comprehensive Assistance for Family Caregivers * VA Income Benefits - Dependency Indemnity Compensation * Temporary Disability or Temporary Leave Income (Workers' Compensation)   The following sources of income may be subject to income taxes depending on the client's adjusted gross income, and therefore may or may not be grossed up depending on amount of income that is not taxable according to borrower tax returns.   * Annuity Income * Housing Allowance * IRA Distribution Income * Private and Long Term (Permanent) Disability Income * Pension Retirement Income * Recently Retired and Not Yet Receiving Pension Income * Retirement Account Income (401k, 403b, Keogh) * Social Security Disability Income - Received on Behalf of a Client * Social Security Disability Income - Received on Behalf of a Non-Client * Social Security Retirement Income - Received on Behalf of a Client * Social Security Retirement Income - Received on Behalf of a Non-Client * Social Security Retirement Income - Recently Retired and Not Yet Receiving Income