Can I use Self-Directed IRA Income to Qualify for Mortgage

[Jamie Greenberg]

Hi folks. Quick question for the lenders out there. My wife and I trend toward the asset-rich but income-poor side of the spectrum so I'm trying to completely understand our ability to borrow in the future to upgrade to a slightly newer/larger primary residence, as well as for future mortgages on investment properties. Currently I own several mortgage notes through my Self Directed IRA LLC. They make a monthly income through interest payments. One of the notes is currently under foreclosure so I may end up owning and renting out that property as well. Can I use that income (both the interest income and the potential rental income) to improve my reported income/DTI on a mortgage application, or does it not count because the money is theoretically "locked" away in a retirement account? If I CAN use it, would I just show invoices, etc. as proof of income since those details don't appear on our tax returns like taxable income would?

Thanks in advance!