Expected Income refers to income from cost-of-living adjustments, performance raises, a new job, or retirement that has not been, but will be received within 60 days of mortgage closing.
The Mortgagee (lender) may consider Expected Income as effective income except when expected income is to be derived from a family-owned business.
The Mortgagee must verify and document the existence and amount of expected income with the employer in writing and that it is guaranteed to begin within 60 days of mortgage closing. For expected retirement income, the lender must verify the amount and that it is guaranteed to begin within 60 days of the mortgage closing.
Expected Income is calculated in accordance with the standards for the type of income being received. The lender must also verify that the HECM borrower will have sufficient income to meet his or her financial obligations between mortgage closing and the beginning of the receipt of the income.
For additional information see Mortgagee Letter 2016-10 and the attached revised HECM Financial Assessment and Property Charge Guide, Sections 3.59 and 3.60 at https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee