Which of the following is NOT considered an acceptable source of repayment income?

Repayment income is crucial for assessing a borrower's ability to repay a USDA Rural Housing Loan. Acceptable sources of income are typically stable, predictable, and reliable.

Net income from a business, payments from social security, and interest and dividends from investments are all considered acceptable sources of repayment income because they are structured and can be verified. Net income from a business reflects the earnings generated through legitimate business operations. Social security payments are regular and guaranteed income provided by the government, while interest and dividends from investments represent consistent revenue streams based on asset ownership.

In contrast, irregular cash gifts are not considered an acceptable source of repayment income. This form of income can be unpredictable and sporadic, lacking the stability required for repayment assessments. Lenders prefer income sources that are documented and can be counted on over time, which is why irregular cash gifts do not meet these criteria. Therefore, it is essential for borrowers to have stable and verifiable sources of income when applying for a loan.