Wage Earner
What tax form does borrower provide for wage earner income?
W2
What document is needed to verify social security income?
Most recent social security award letter
Mrs. Lady has been renting out an investment property but does not claim the income on taxes. Can we include this income to qualify Mrs. Lady?
No, Mrs. Lady would need to be claiming this income on her tax returns for the last 2 years.
Please provide the required income disclosure
You don't need to include alimony, child support, or separate maintenance income if you don't wish to have it considered as a basis to repay this loan
Miss Baker is an independent contractor. What tax forms are we required to collect for Miss Baker?
Last 2 years 1099
Most recent 2 years 1040
One if two consecutive weeks
Two if weekly
If income is non taxable, what is needed?
Most recent 1 year tax return (1040) with all schedules
If a borrower doesn't have access to the current lease for their rental property, what can be accepted in place of this?
Original lease & two months proof of receipt
Mr. Parker receives alimony income. How long of a history and continuance of the income must Mr. Parker have in order for us to include this income to qualify?
2 year history
3 year continuance
For self employment, do we go off of the gross or net income?
Net
Borrowers paystub has to be dated within how many days of the application
30 days
Mr. Jones has been claiming is 401k income on his taxes for the last one year and is not on a set distribution, can we include Mr. Jones 401k income to qualify?
No.
Mr Jones will need a 2 year history of claiming on taxes. Mr Jones will also need to be on a set distribution and have enough funds to verify a 3 year continuance.
What fees should we be asking the borrower about when it comes to a rental property? (4)
Tax, Insur, Flood, HOA
Bonus 100: If the bo escrows, do we include in the fees?
When verifying child support- what 3 forms can be accepted in place of the Divorce Decree?
Legal separation agreement
Court Order
Voluntary payment agreement
A profit and loss form & balance sheet are required to be dated within how many days of the application date?
90
To verify pension income, in place of the current award letter- what can be accepted?
Original award letter and most recent 1099
The mortgage statement for a rental property has to be dated within how many days of the application?
45
To verify Capital Gains, how many years of tax returns are needed?
3 years
What form shows how much percentage of ownership a borrower has in a company?
What additional item does a borrower need to provide in order to provide proof of overtime/bonus/commission income?
Most recent two years year end pay stubs
Mr. Jones received annuity income but hasn't filed his taxes yet for this year. What can you advise Mr. Jones?
Form 4868 proof of automatic extension, and the most recent two years filed 1040s.
If there is no mortgage on a rental, a mortgage statement won't be obtained. What documents are obtained in place of this?
Tax bill and HOI information. (Hoa & Flood if applicable)
When verifying Social Security minor income, what 4 things are needed?
Copy of most current award letter
Birth cert/Passport/State ID
Most recent bank statement
LOE to verify 3 year continuance
Mr. Cobb has LESS than 25 percent ownership in an S Corporation, what documents do we require?
Most recent 2 years K1 showing ownership
Most recent 2 years 1040s
Most recent pay stub if applicable
Most recent w2 if applicable