When applying for a conventional loan, lenders typically allow for the grossing up of Social Security income. Grossing up means increasing the reported income by a certain percentage to account for taxes that are not actually paid on that income. This is often done to qualify for a larger loan amount.

The specific amount by which Social Security income can be grossed up varies depending on the lender and loan program. However, it's common for lenders to allow a gross-up percentage of 15% to 25%. This means that if a borrower receives $1,000 in monthly Social Security income, the lender may consider it as $1,150 to $1,250 for loan qualification purposes.

It's important to note that not all lenders offer grossing up of Social Security income, and those that do may have different policies and requirements. Borrowers should check with their lender to confirm the allowable gross-up percentage and ensure they meet any other eligibility criteria. Additionally, the borrower's total income, debt-to-income ratio, credit score, and other factors will still be considered during the loan approval process.