FHA Loan Qualification

[Rajat Chopra]

Most of my income is currently W2 income from my companny. However next year there will be a portion of my income which will also be interest income (simple interest received on 1099s or maybe K1s). So if I decide next year to purchase a home using an FHA loan, will I be able to show my interest income from 1099s as additional income to help me qualify for a higher home price? Additionally, what if I get to a situation where more than half of my income comes in on 1099s and K1s (rather than W2)? Will FHA allow me to qualify for a new home purchase based on the mix of my W2 and 1099 income? Will they only count my W2 income or will they look at all sources of income on my tax return and qualify me based on all sources of income?