Short Term Workers (travel nurses, union trades, and movie/television trades)
The Linked Income feature in IncomeXpert helps you qualify borrowers that hold short term assignments and move employer to employer due to the short term nature of their professions. What is Linked Income? Linked Income allows you to combine income from multiple jobs — both current and previous — into a single, averaged income stream. […]
When a Business Changes Tax Filing Types
Why this comes up more than you’d think Business owners restructure their companies all the time — and almost always for tax reasons, not because they started a new business. A plumber who’s been operating as a sole proprietor for a decade discovers the S-corp salary/distribution split could save them $8,000 a year. They make […]
What Is Form 1007? A Complete Overview for Appraisal Pros
Fannie Mae’s Form 1007, formally known as the Single-Family Comparable Rent Schedule, is a vital document in the appraisal process for investment properties, particularly one-unit properties and single-family homes. This form plays a critical role for both appraisers, who are responsible for its accurate completion, and lenders, who rely on it to evaluate a property’s […]
The Underwriting Process Explained: 10 Essential Steps
As a lender, the mortgage underwriting process is one of the key components of your lending operations. If you’re making loans for home purchases, refinancing existing mortgages, or issuing home equity loans or second mortgages, effective underwriting is a must. This guide offers a clear overview of the key steps in the mortgage underwriting process—from […]
Fannie Mae Asset Depletion: Key Policies & Calculation Guide
Assessing borrowers with substantial accessible liquid assets but limited recurring income can present unique underwriting challenges. Fannie Mae’s asset depletion program offers lenders a way to qualify these borrowers by converting their accessible assets into a usable income stream for mortgage approval. This approach allows underwriters to recognize financial stability beyond traditional employment income and […]
Freddie Mac Form 91: Step-by-Step Guide + Free Download
Self-employment is great, but it can make the mortgage application process somewhat challenging. The good news is that Form 91 by Freddie Mac can simplify things for both lenders and self-employed borrowers by streamlining the process and accurately assessing a borrower’s self-employed income, which can lead to faster approvals. Our guide provides a comprehensive, step-by-step […]
Calculating Income For Union or Skilled Trades
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, […]
Variable Income Calculation: A Complete Guide for Lenders
Variable income presents unique challenges in mortgage underwriting due to its fluctuating nature. Unlike fixed salaries, this type of income can vary over time, making it harder to assess stability and predictability. As a result, lenders must apply careful analysis and follow consistent documentation and calculation practices to determine whether variable income can be used […]
Non-Taxable Income Explained | Blueprint Guide
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) […]
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 […]