Wage Earners

Generally two years of employment history is required. Sometimes borrowers may have gaps in employment due to loss of job or illness or other reasons. This is a case by case scenario and can be handled if the reasons are legitimate.

Gross Income is traditionally averaged over last two years. However if a borrower is on salary the current salary can be used as income if this is based on growth achieved by the borrower. Similarly if a borrower is hourly and hourly wage has gone up the new hourly wage may be used if the Borrower is full time and the hourly increase is based on growth achieved by the borrower.

Bonus,Overtime ,Other allowances are generally averaged over two years .

Income from Part time jobs is acceptable only if the borrower has been on the job for last 2 years.

Incomes such as child support ,social security,pension ,disability ,foster care etc will be included in the borrowers income if the income is expected to be received for next 2 years.

Self Employed

Only the adjusted gross income ( after deducting all expenses) is considered. Generally  some misconstrue this and try to use Gross Receipts.That is not permissible. Income after deducting expenses from gross receipts is considered.This basically is your taxable income from Business.However non cash charges like depreciation can be added back to your taxable income ,thus increasing the borrowers income.

It is a must to have the business in operation for two years .Income will be averaged for two years.

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