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) […]
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 […]
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 […]
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. […]
Calculating Income For Union or Skilled Trades
At Blueprint we get all kinds of questions on how to calculate different types of income through our support email. In a recent email, the client told us the borrower had an unusual income history. The borrower had four to five different W-2s for each year in the last two years and had three different […]
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 […]
Rental income and Form 8825
Over the years I have seen many borrower applications with rental real estate as part of a borrower’s financial picture. Personally, I think the increase in rentals is partially due to people watching “fix it and flip it” shows. But what happens when you get a borrower who owns rental properties that are personally financed […]
Rental income forms you need to know
As more and more people pursue a side hustle to supplement their income, one smart investment option that many people are diving into is the world of rental property. The long-term passive method of collecting monthly rent gives stable and reliable returns in today’s market – often better than random investments or flipping homes! […]
Top 3 income issues that will slow your clear to close
New Year’s is an interesting holiday to me. It is the only holiday that seems to prompt the most change in people’s lives. When you think about it, does anyone say, “This Thanksgiving I am going to start doing push-ups every day”? Some New Year’s changes occur whether you plan them or like them or […]
How to determine variable income
When I was in the Army, getting instructions from Army manuals or from higher ranks was often “clear as mud,” meaning that even though you were given the instructions and read them over and over, you still required additional help just to figure the task out. Over the many years I have been underwriting, some […]