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Why was overtime, bonus, commission, or tips not determined?

The number one email we get from our clients working with employed borrowers on IncomeXpert PLUS is “My borrower has overtime (or any other variable income) why didn’t IncomeXpert PLUS add in these income types?” The agencies state in the document requirements section for variable income to either get a VOE or “most recent pay stub and IRS W-2 covering most recent 2 years”.  In 99% of the cases, getting paystubs and W-2s only will

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IncomeXpert PLUS Supported Income Types

IncomeXpert PLUS allows users to upload borrower tax returns and income documentation. IncomeXpert supports all agency income types, however IncomeXpert PLUS only supports the following subset. All uploaded documents must meet the the following document requirements. Documents containing unsupported income types will not result in income calculators being created or populated with data. Supported Income Types Unsupported Income Types

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How to Calculate Income for Self-Employed Borrowers

There are four steps on how to calculate income for self-employed borrowers. Borrowers who are self-employed have two distinct roles in the process of generating their personal income.  Due to the dual nature of their daily roles of income generation and the higher risk, it can prove to be more challenging to determine their income than it would be for employed borrowers. The first role is of the employer, meaning they need to create a

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How to calculate social security income

Borrowers who have contributed to the US Government Social Security program may qualify for retirement, disability, or survivors benefits.  The contributions for this program are collected by your employer’s payroll provider, or if the borrower is self-employed, it is collected via the 1040 tax forms along with other federal taxes. When a borrower is using social security retirement benefits the underwriter typically follows these steps: First, the underwriter confirms receipt of the retirement income to

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How is income calculated for mortgages?

The process of analysis of a borrower’s income for mortgages is one of the best documented processes in the lending world. Regardless of the investor or agency that is offering the loan, an overwhelming majority of them follow these four principles to determine how income is calculated for mortgages. Principle # 1: Income must reasonably continue for 36 months to qualify Since mortgages are long-term loans and generally offered between fifteen to thirty years, the investors want

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