r. Other Types of Income

If it is reasonable to conclude that other types of income will continue in the foreseeable future, include it in effective income.  Otherwise, consider whether it is reasonable to use the income to offset obligations of 10 to 24 months duration.

“Other” types of income which may be considered as effective income include, but are not limited to

·   pension or other retirement benefits

·   disability income

·   dividends from stocks

·   interest from bonds, savings accounts, and so on, and

·   royalties.

The lender may include verified income from public assistance programs in effective income if evidence indicates it will probably continue for 3 years or more.

The lender may include verified workers’ compensation income that will continue in the foreseeable future, if the veteran chooses to reveal it.

The lender may include verified income received specifically for the care of any foster child(ren).  Generally, however, foster care income is to be used only to balance the expenses of caring for the foster child(ren) against any increased residual income requirements.

Do not include temporary income items such as VA educational allowances and unemployment compensation in effective income.

Exception:

If unemployment compensation is a regular part of the applicant’s income due to the nature of his or her employment (for example, seasonal work), it may be included.