TPO Kit
Qualifying income worksheet for loan officers.
Qualifying income for salary, hourly, overtime, bonus, commission, Schedule C and fixed income, with each calculation shown. Declining income is flagged.
Estimates from the inputs shown. Not a Loan Estimate or an offer to lend.
Inputs stay in this browser. Usage counts record the tool used and a few rounded figures, such as loan purpose, state and loan-amount band. No names, addresses or exact amounts.
Questions
How is each income type worked out?
Salary: the annual amount ÷ 12. Hourly: rate × hours a week × 52 ÷ 12.
Overtime, bonus, commission paid through the year: this year to date plus the two years before it, averaged. If this year is running below that average, the lower, current figure is used and flagged. An annual bonus: the last two years' totals, averaged.
Self-employed: Schedule C net profit plus depreciation, depletion, business use of home and amortization, minus meals that aren't deductible. Two years averaged; if the more recent year is lower, that year is used and flagged.
Fixed income: can be grossed up when it isn't taxed. Fannie Mae and Freddie Mac allow up to 25%. FHA allows the greater of 15% or the borrower's tax rate. Check your program's rule.
What does it leave out?
Self-employed income from returns other than Schedule C. It doesn't replace Form 1084, the agency income calculators or an underwriting decision: your investor's guide and the AUS findings decide what counts.