What types of income count for a personal loan application?

The Equal Credit Opportunity Act (ECOA) prohibits lenders from discriminating in considering income based on: the source of income (employment vs. benefits vs. investments), whether income is derived from public assistance, part-time employment status, age (for retirees), or receipt of alimony/child support/separate maintenance.

Income types with documentation requirements: W-2 employment income: pay stubs (most recent 1-2 months), W-2 form. Self-employment income: 2 years of Schedule C tax returns; YTD profit and loss statement. Social Security / SSDI / SSI: award letter or current benefit statement (SSA-1099). Pension and retirement: award letter, 1099-R, or benefit statement. Rental income: Schedule E of tax return; lease agreements for verification. Alimony and child support: court order and 12 months of payment records. You are not legally required to disclose alimony/child support, but if you choose to include it as qualifying income, lenders may require documentation of its consistency. Investment income (dividends, interest, capital gains): 2 years of Schedule B and investment account statements. Part-time income: pay stubs; 2 years of tax returns showing consistency.

What lenders do with multiple income sources: All qualifying income sources are added together to determine gross monthly income for DTI calculation. If you have W-2 income of $4,000/month and rental income of $800/month, your qualifying income may be $4,800/month. Lenders vary in how conservatively they treat variable income - some use a 24-month average for rental, freelance, or investment income.