What does NACA allow as Non-payroll deposits?

NACA recognizes that non-payroll deposits include various types of funds that are not part of regular, recurring income. Lump-sum payments such as tax refunds and bonuses are classified as non-payroll deposits because they do not represent consistent, ongoing income. Instead, they are one-time payments that can positively impact a borrower's financial situation and reinforce their ability to make mortgage payments.

While other forms of assistance or income might play a role in an individual's financial profile, they often don’t fall under the strict definition of non-payroll deposits as understood in this context. Regular monthly salary deposits are characterized as payroll income rather than non-payroll, and direct deposits from government assistance programs may be viewed differently based on specific guidelines within lending contexts. Additionally, while cash donations from family can provide support, they must often meet certain criteria to qualify for consideration as non-payroll income. Thus, with lump-sum payments being recognized broadly in financial assessments, they represent a valid form of non-payroll deposit in this circumstance.