Which type of income do lenders typically not count as stable income?

Lenders typically consider stable income to be consistent and reliable, as it helps them assess a borrower's ability to make regular mortgage payments. Unemployment compensation does not fall into this category because it is temporary and dependent on specific conditions, such as the borrower’s unemployment status. It is not a reliable or ongoing source of income, and lenders understand that it can vary greatly in availability and duration.

In contrast, regular employment income is generally viewed as stable and predictable, as it is often tied to a consistent job and salary. Investment income can also be considered stable, especially if it comes from reliable sources like dividends or interest that are expected to continue. Retirement income, such as Social Security or pension distributions, is regarded as stable because it is typically received regularly, though it may not always match the amounts from employment.

Thus, unemployment compensation stands out as the type of income that lenders do not typically count as stable because of its inherent uncertainty and the lack of guarantee that it will continue over time.