What type of income can always be excluded when qualifying a borrower for a mortgage loan?

The correct response highlights the principle that when qualifying a borrower for a mortgage loan, lenders consider the stability and reliability of income sources. "Income not expected to continue" refers to income that is temporary or uncertain, such as seasonal work, bonuses, or one-time payments. Lenders generally prefer to exclude such income from qualifying calculations because it does not provide a reliable basis for long-term repayment capabilities.

The emphasis is on ensuring that the income used to qualify a borrower is both steady and predictable. Since income not expected to continue lacks these characteristics, it can logically be excluded from the qualifying process. This approach helps mitigate the risk of borrower default by ensuring that only sustainable income streams are factored in during the mortgage application review.

In contrast, the other options represent income types that, under certain conditions, may be factored into a borrower’s overall financial picture. Child support and alimony can sometimes be counted if there is documentation showing that they will continue for a predictable period. Welfare or benefits might also be considered in some circumstances depending on the lender's policies and the borrower's overall financial situation. However, the unsteady nature of "income not expected to continue" affirms its exclusion from qualifying criteria.