U.S. Mortgage Index

Gross income

Definition

Gross income is income before taxes and most deductions. Mortgage underwriting commonly uses a gross monthly figure when it calculates debt-to-income ratios.

In plain English

Pay stubs show both gross pay and take-home pay. Qualification math usually starts from the larger, pre-deduction amount. How a lender documents overtime, self-employment, or other income is an underwriting practice. This page names the gross-income idea, not a documentation checklist.

Technical definition

The CFPB consumer glossary supports income before taxes as the everyday heading. USDA annual-income tests are program context, not this consumer definition.

Why it matters

DTI and prequalification discussions are unreadable if “income” silently means take-home pay.

Sources reviewed