Household Income
The combined gross income of all members of a household 15 years old and older. Individuals do not have to be related in any way to be considered members of the same household. Alternatively, household income is the combined income of all members of a household who jointly apply for credit. Household income is an important risk measure used by lenders for underwriting loans. Investopedia Says:
Average household income is a frequently reported economic statistic. Because many households consist of a single person, average household income is usually less than average family income, another frequently reported economic statistic, because a household consisting of a single person is not included in the average family income calculation. Related Terms:
Co-borrower
Combined Loan to Value Ratio - CLTV Ratio
Debt-To-Income Ratio - DTI
Economics
Gross Income
Net Income - NI |