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Are you considering buying or refinancing a home in the near future? If so, you will likely need to complete a Fannie Mae income worksheet. This document is used to help determine whether you are eligible for a mortgage and, if so, how much you can afford. Completing the worksheet is not difficult, but it does require some patience and attention to detail. In this blog post, we will walk you through the steps of completing the Fannie Mae income worksheet and provide some tips for ensuring accuracy.

Below, you can see some specifics of fannie mae income worksheet PDF. You can go through it prior to typing in the gaps.

QuestionAnswer
Form NameFannie Mae Income Worksheet
Form Length1 pages
Fillable?No
Fillable fields0
Avg. time to fill out15 sec
Other namesfannie mae self employed worksheet, fannie mae income worksheet, mae income worksheet, fannie mae form 1038 fillable

Form Preview Example

Rental Income Worksheet

Individual Rental Income from Investment Property(s): Monthly Qualifying Rental Income (or Loss)

Documentation Required:

Schedule E (IRS Form 1040) OR

Lease Agreement or Fannie Mae Form 1007 or Form 1025

Enter

Investment Property Address

Investment Property Address

Step 1. When using Schedule E, determine the number of months the property was in service by dividing the Fair Rental Days by 30.

If Fair Rental Days are not reported, the property is considered to be in service for 12 months unless there is evidence of a shorter term of service.

Step 1. Result: The number of months the property was in service:

Result

Step 2. Calculate monthly qualifying rental income (loss) using Step 2A: Schedule E OR Step 2B: Lease Agreement or Fannie Mae Form 1007 or Form 1025.

 

 

Step 2 A. Schedule E - Part I

 

 

 

 

 

A1

Enter total rents received.

Enter

 

 

 

 

 

 

 

 

 

 

 

A2

Subtract total expenses.

Subtract

 

 

 

 

 

 

 

 

 

 

 

A3

Add back insurance expense.

Add

 

 

 

 

 

 

 

 

 

 

 

A4

Add back mortgage interest paid.

Add

 

 

 

 

 

 

 

 

 

 

 

A5

Add back tax expense.

Add

 

 

 

 

 

 

 

 

 

 

 

A6

Add back homeowners’ association dues.

Add

 

 

 

 

 

This expense must be specifically identified on Schedule E in order to add it back.

 

 

 

 

 

 

 

 

 

 

A7

Add back depreciation expense or depletion.

Add

 

 

 

 

 

 

 

 

 

 

 

A8

Add back any one-time extraordinary expense (e.g., casualty loss). There

Add

 

 

 

 

 

must be evidence of the nature of the one-time extraordinary expense.

 

 

 

 

 

 

 

 

 

 

 

Equals adjusted rental income.

Total

 

 

 

 

A9

Divide by the number of months the property was in service (Step 1

Divide

 

 

 

 

 

Result).

 

 

 

 

 

 

 

 

 

 

 

Equals adjusted monthly rental income

Total

 

 

 

 

A10

Subtract proposed PITIA (for subject property) or

Subtract

 

 

 

 

 

existing PITIA (for non-subject property).

 

 

 

 

 

 

 

 

 

 

 

Step 2A. Result: Monthly qualifying rental income (or loss):

Result

 

 

 

 

 

 

 

 

 

 

Step 2 B. Lease Agreement OR Fannie Mae Form 1007 or Form 1025

This method is used when the transaction is a purchase, the property was acquired subsequent to the most recent tax filing, or

the lender has justification for using a lease agreement.

B1 Enter the gross monthly rent (from the lease agreement) or

 

market rent (reported on Form 1007 or Form 1025).

Enter

For multi-unit properties, combine gross rent from all rental units.

 

B2 Multiply gross monthly rent or market rent by 75% (.75). The remaining

Multiply

x.75

x.75

 

 

 

25% accounts for vacancy loss, maintenance, and management expenses.

 

 

 

 

 

 

 

 

 

Equals adjusted monthly rental income.

Total

 

 

 

 

B3 Subtract proposed PITIA (for subject property) or existing PITIA (for non-

Subtract

 

 

 

 

 

subject property).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Step 2B. Result: Monthly qualifying rental income (loss):

Result

 

 

 

 

 

 

 

 

 

 

Step 3. Determine the qualifying impact using the result of Step 2A or Step 2B.

 

 

 

 

 

If the combined result of Step 2A or 2B is positive, add the positive amount to the borrower’s

 

 

 

monthly qualifying income. Because the PITIA expense was included in the calculations above, do not add it to the debt-to-income (DTI) ratio.

If the combined result of Step 2A or 2B is negative, include the amount of the loss in the borrower’s monthly expenses when calculating the DTI ratio.

DU Data Entry

 

Monthly Income and Combined Housing Expenses

 

 

Mortgage Liabilities

 

 

 

 

 

 

 

 

 

Subject

 

Enter the amount of the monthly qualifying income (positive result) or

 

 

For refinance transactions, identify the

Property

 

monthly qualifying loss (negative result) in “Subject Net Cash.”

 

 

mortgage as a subject property lien.

Non-Subject

 

Enter the amount of the monthly qualifying income (positive result) or

 

 

Identify the mortgage as a rental

Property

 

monthly qualifying loss (negative result) in “Net Rental.”

 

 

property lien.

Refer to the Rental Income topic in the Selling Guide for additional guidance.

Fannie Mae Form 1038

09.30.2014

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