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.
Question | Answer |
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Form Name | Fannie Mae Income Worksheet |
Form Length | 1 pages |
Fillable? | No |
Fillable fields | 0 |
Avg. time to fill out | 15 sec |
Other names | fannie mae self employed worksheet, fannie mae income worksheet, mae income worksheet, fannie mae form 1038 fillable |
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.
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Step 2 A. Schedule E - Part I |
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A1 |
Enter total rents received. |
Enter |
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A2 |
Subtract total expenses. |
Subtract |
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A3 |
Add back insurance expense. |
Add |
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A4 |
Add back mortgage interest paid. |
Add |
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A5 |
Add back tax expense. |
Add |
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A6 |
Add back homeowners’ association dues. |
Add |
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This expense must be specifically identified on Schedule E in order to add it back. |
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A7 |
Add back depreciation expense or depletion. |
Add |
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A8 |
Add back any |
Add |
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must be evidence of the nature of the |
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Equals adjusted rental income. |
Total |
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A9 |
Divide by the number of months the property was in service (Step 1 |
Divide |
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Result). |
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Equals adjusted monthly rental income |
Total |
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A10 |
Subtract proposed PITIA (for subject property) or |
Subtract |
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existing PITIA (for |
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Step 2A. Result: Monthly qualifying rental income (or loss): |
Result |
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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 |
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market rent (reported on Form 1007 or Form 1025). |
Enter |
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B2 Multiply gross monthly rent or market rent by 75% (.75). The remaining |
Multiply |
x.75 |
x.75 |
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25% accounts for vacancy loss, maintenance, and management expenses. |
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Equals adjusted monthly rental income. |
Total |
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B3 Subtract proposed PITIA (for subject property) or existing PITIA (for non- |
Subtract |
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subject property). |
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Step 2B. Result: Monthly qualifying rental income (loss): |
Result |
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Step 3. Determine the qualifying impact using the result of Step 2A or Step 2B. |
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If the combined result of Step 2A or 2B is positive, add the positive amount to the borrower’s |
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monthly qualifying income. Because the PITIA expense was included in the calculations above, do not add it to the
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 |
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Monthly Income and Combined Housing Expenses |
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Mortgage Liabilities |
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Subject |
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Enter the amount of the monthly qualifying income (positive result) or |
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For refinance transactions, identify the |
Property |
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monthly qualifying loss (negative result) in “Subject Net Cash.” |
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mortgage as a subject property lien. |
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Enter the amount of the monthly qualifying income (positive result) or |
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Identify the mortgage as a rental |
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Property |
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monthly qualifying loss (negative result) in “Net Rental.” |
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property lien. |
Refer to the Rental Income topic in the Selling Guide for additional guidance.
Fannie Mae Form 1038 |
09.30.2014 |