Continuation of Income Rules
Continuation of income is the lender's check that the money you earn now will keep coming after you close. Continuation of income matters most for pay that has an end date, like alimony, benefits, or contract work.
This guide explains what continuation of income means and how to prove it. Mortgage Capital, NMLS# 1859012, helps Florida buyers document income that must be shown to last.
What continuation of income means
Continuation of income is proof that a source of pay will continue for a reasonable time, usually at least three years. Lenders apply this test to income that could stop, so they know the loan stays affordable.
Steady W2 wages usually pass without a second look; income with an expiration date needs evidence.
Income that must be shown to continue
Child support, alimony, Social Security, disability, pension, and some contract or bonus income all draw the continuation test. If any could end within three years, the lender needs proof it will not.
The rule protects both you and the lender from a payment you cannot keep once the income stops.
How to prove continuation
You prove continuation with documents that show the source and its length. A benefit award letter, a divorce decree, or a signed contract stating the term all establish that the income will last.
The clearer the paperwork on how long the income runs, the smoother the approval.
The three-year guideline
Most programs want income to continue at least three years from closing. If a support order or contract ends sooner, that income often cannot be counted, even if you are receiving it now.
Timing is everything here; income ending in two years usually will not help you qualify.
Documenting continuation in Florida
Florida buyers with benefit, support, or contract income qualify regularly once continuation is proven. The key is gathering the right award letters or agreements before you apply.
We tell you exactly which documents establish continuation for your income so nothing is counted out.
Continuation of Income Rules: step by step
Frequently asked questions
What is continuation of income?
It is the lender's check that your income will keep coming after closing, usually for at least three years.
Which income needs the continuation test?
Child support, alimony, Social Security, disability, pension, and some contract or bonus income.
How long must income continue?
Most programs want it to last at least three years from closing.
How do I prove continuation of income?
With award letters, a divorce decree, or a signed contract that shows the source and its length.
What if my support ends in two years?
That income usually cannot be counted, even if you are receiving it now.
Does W2 salary need continuation proof?
Steady W2 wages usually pass without special documentation.
Can bonus income need continuation proof?
Yes. Some bonus and contract income must be shown to continue to be counted.
Can you help document continuation in Florida?
Yes. We identify the exact documents that establish continuation for your income.
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Verify the details for your own situation against these government and agency sources: CFPB Owning a Home guide and HUD homebuyer resources.