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How to determine variable income from a paystub

How to determine variable pay from a paystub When reviewing a borrower’s paystubs, you’ll quickly notice that payroll providers often use different formats and terminology, making it challenging to accurately determine employment income. For example, something as simple as overtime might be labeled in a variety of ways, such as Overtime, OT, Double Time, Weekend OT, Triple Time, and more. To address this issue, focus on placing each paystub entry into its proper class of

Calculating Income For Union or Skilled Trades

How do I determine income for union workers? Determining income for union workers comes with unique challenges. Unlike conventional employment, these workers typically take on a series of short-term assignments. They don’t job-hop in the traditional sense; rather, they’re dispatched by their union halls to work on projects, moving from one to the next as assignments are completed. You’ll commonly see electricians, welders, carpenters, and other construction laborers in this group. Union-based work extends beyond

How to determine variable income

How to Determine Variable Income for My Borrower Variable income is the leading cause of income calculation issues for most lenders. Variable income is generally categorized into the following classes as outlined in the guidelines: overtime, bonus, commission, tips, and base pay when the base is variable. Variability in base pay typically occurs when it depends on hours worked each week, the amount paid per hour, or a combination of both. Accurately underwriting variable income

Understanding Non-Taxable Income (aka Grossing Up Income)

How do I gross up non-taxable income? Non-taxable income refers to earnings exempt from income taxes. Common examples include child support, alimony, Social Security income, VA benefits, interest income, and 401(k)/pension income. Properly accounting for these income types is essential for mortgage qualification. Why Grossing Up Non-Taxable Income Matters Mortgage qualification relies on debt-to-income (DTI) ratios, which are based on gross (pre-tax) income rather than take-home pay. For most conforming loans, the DTI limit is

What if my self-employed borrower changes tax filing types?

What if my borrower changes tax filing status? Business owners often change their business entity type as their enterprise evolves. For example, a business may start as a sole proprietorship or single-member LLC filing IRS Schedule C, but later transition to an S-corporation to take advantage of tax benefits. This change raises important questions for underwriters and processors: Is this still the same business, and does the borrower remain qualified? Why business tax filing changes

Determine mortgage income for travel nurses

How Do You Calculate Income for a Travel Nurse? Travel nurses play a vital role in the healthcare industry by taking on temporary assignments through staffing agencies. These assignments can be local, national, or even international. Unlike traditional nurses, their income can be variable and depends on the contracts they take. For mortgage companies, determining the income of travel nurses can be challenging due to their unique employment circumstances. However, with the right framework and

PR – Fannie Mae Income Calculator Release

Detroit, July 22, 2024 – Blueprint Solutions, the creators of the innovative mortgage income analysis software IncomeXpert and IncomeXpert PLUS, is thrilled to announce a new integration with Fannie Mae’s Income Calculator. This integration allows lenders to directly access Fannie Mae’s Income Calculator from within the Blueprint platform. Clients using IncomeXpert or IncomeXpert PLUS will now have additional options when determining qualifying income for their borrowers. Beyond the comprehensive analysis provided by IncomeXpert, users can

January Income Documentation

Happy New Year 2024 from the Blueprint Team, and welcome to our Zone Of Confusion Blog PART TWO. Posting these blogs has become a tradition for us as we go into our 11th year in business in 2024! If you have not read the fist part of this blog, “Zone of Confusion Part 1 of 2,” that covers the “wild YTD calculations,” take a look there, and this blog continues on from that blog. So

January Zone Of Confusion

Happy New Year 2024 from the Blueprint Team, and welcome to our Zone Of Confusion Blog, which has become a tradition for us to post as we go into our 11th year in business! Why do we post this blog as a tradition? Just like in life, we have fun traditions for the holidays (i.e. a ski trip at Christmas or friends over on New Year’s Day to watch the big college game). Some traditions

Future Employment Income to Qualify a Borrower?

Securing a mortgage for your borrower is exciting, but sometimes, you might find your borrower is on the edge of qualification. Imagine helping your borrower who is just a step away from obtaining that coveted mortgage approval when an unexpected opportunity arises, for instance,a new promotion or a potentially higher-paying position! This scenario opens up a fascinating question: Can you use your future income to tip the scales to get an approval? In this blog