[mdunker]

can we use funds received for a guardianship as income to qualify the customer on a residential mortgage? We have the SSI letter and show that the customer is the guardian but can these be used to qualify them?

[rcooper]

Great question…
My initial thought is that if these funds are being paid to a guardian for the care of the beneficiary of the funds, so in a representative payee capacity, then they would not be considered income of the guardian in determining his/her ability to repay a loan.

I’m going to run this by Jack to get his thoughts.

[rcooper]

mdunker,

I have talked to Jack.

He researched several Social Security publications and found that they indicate such income can be used to help a guardian provide housing for the beneficiary. It is even suggested that the tax-free income be grossed up for underwriting purposes. It also suggested that if the beneficiary is within three months of his/her eighteenth birthday the income may not be acceptable for underwriting.

Again, this information is based on our interpretation of the information we read in various SS publications. We suggest you verify how guardianship benefits may be used with a specialist from the Social Security Administration or an attorney that specializes in SSI.

[Author]

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