"Qualifying purposes" refers to reasons or conditions that have been determined as suitable or acceptable for a specific situation or goal.
Full definition
Your contributions can be withdrawn without penalty at any time, and your earnings can be withdrawn without penalty if for
certain qualified purposes, including higher education, buying your first house or paying health insurance premiums while unemployed.
In addition, the Lender must consider the Borrower's experience in the business before considering the income
for qualifying purposes.
FHA uses two main tools in calculating the rental factor for
qualifying purposes: a rental appraisal report of the subject property or rental properties listed on the application, and the HOC vacancy and maintenance factor.
When 529 funds are used for
these qualified purposes, there is no federal income tax on investment gains (no capital gains tax, ordinary income tax, or Medicare surtax).
Among
these qualified purposes are: purchase of a first home, education expenses, or health - care expenses.
However, it's important that you see all three of your credit scores because mortgage lenders pull all three and then use the middle credit score for
qualifying purposes.
Here's an example: If you're applying for a mortgage together and need both of your income to qualify, the lender will take the lower credit score into account for
qualifying purposes.
In addition, you need to get your mortgage advisor involved so that they can help you «back into the amount needed» for
qualifying purposes.
If the Borrower has been self - employed for less than two years or is relocating to a different geographic area, the Lender must consider the acceptance of the company's service or products in the marketplace before considering the income for
qualifying purposes.
Bonus tip: Besides keeping your credit pristine for
qualifying purposes, it's also a good idea to monitor your statements, says Serfas.
Being required to put more money down and being able to use less potential rental income for
qualifying purposes will displace many new real estate investors (who currently only make up around four per cent of all mortgage consumers in Canada).
Gross Income — For
qualifying purposes the income of the borrower before taxes or expenses are deducted.
The homeowners association dues are included in the total monthly mortgage payment for
qualifying purposes.
Note: if you are married, your spouse will need to be «on title» even if you are not using his / her income for
qualifying purposes.
Deposits as small as $ 500 that are from «mattress money,» untraceable foreign bank accounts, or cash payments of any kind can render an entire bank account invalid and unusable for
qualifying purposes.
* If you will be borrowing money to purchase an investment property, your lender will use 75 % of expected income but 100 % of expected expenses for
qualifying purposes.
The discussion is how long must you hold the replacement property and use it for
a qualified purpose to validate the exchange.