The Unofficial SMART Scholarship Forum

Hello everyone,

I am a senior in college and have been with the SMART program for 1.5 years so far. I am extending to a 4+1 program, so my total commitment to the program will be three years. I wanted to explore the option of applying for a mortgage to either buy a primary residence or a rental property. However, about 75% of my income comes from the 1099-MISC tax form from SMART scholarship stipends, ISPS, and miscellaneous payments. I was wondering if anyone has any information on the ability to use this income to contribute towards eligible income for a mortgage application. Thank you in advance for your knowledge and help on the subject!

Odds aren't great, unfortunately.

I'd suggest trying a local credit union or a broker, since credit unions tend to have more flexible underwriting criteria, and a broker may have some experience with obtaining loans for clients with non-traditional income sources. But even then, I'm skeptical this is going to work out for you. You might have had better odds applying at the beginning of the program, rather than in the middle. Still, it can't hurt to try.

When I asked, I was told I could not count my fellowship as income, but I only talked to one originator. I ended up having to wait until I had a job offer letter. You should expect to be told no a couple times before finding someone who is willing to work with you (if you find anyone at all who is willing). A lot of banks are understandably hesitant to offer you a 30-year loan based on income that is only coming in for another year and a half.

Hopefully someone else can respond to your question who was actually successful in getting a loan based on fellowship income. Good luck!