Borrower information
Borrower name
Co-borrower
Loan #
Date
Guideline / program
Tax year reference
2025
Most recent tax return filed — enter in all 2025 fields
2024
Prior tax return filed — enter in all 2024 fields
2026
Current year — YTD paystub reconciliation only (W-2 section)
Tax returns being used:
Dividing over 24 months
Select all income types that apply — sections stay open until you deselect
📋 W-2 / Salary
💰 Sch B Interest/Div
💼 Sch C Sole Prop
📈 Sch D Cap Gains
🏠 Sch E Rental
🚜 Sch F Farming
🤝 Form 1065 Partnership
🏢 Form 1120-S S-Corp
🏛 Form 1120 C-Corp
🏦 Retirement / SS
📋
W-2 / SalaryConventional$0 / mo
IRS Form 1040 — W-2 wages from employment
Employment type
Base annual salary
📍 Offer letter or W-2 Box 1 minus bonus/OT
Hourly rate (if hourly)
📍 Rate × 40 hrs × 52 wks = annual
Variable income — bonus / overtime / commission (2-year average required)
Year 1 variable — most recent W-2
📍 W-2 Box 1 minus base salary amount
Year 2 variable — prior year W-2
📍 Prior year W-2 Box 1 minus base salary
YTD paystub reconciliation (optional but recommended)
YTD gross earnings
📍 Most recent paystub — YTD gross pay box
Pay periods completed
e.g. biweekly: 13 periods by July
Pay frequency
Enter YTD figures above to reconcile against W-2 base pay.
Variable income averaged 2 years. Declining income may require exclusion per agency guidelines.
UW justification notes
💰
Schedule B — Interest & Dividends from Self-EmploymentConventional$0 / mo
Form 1084 Lines 2a–2b — only include income paid BY borrower's own business
Confirm payer EIN on 1099-INT / 1099-DIV matches the EIN of the borrower's business entity.
2a. Interest income from self-employment 2025 (most recent)
📍 Schedule B Part I — match payer EIN to business EIN
2a. Interest income from self-employment 2024 (prior year)
📍 2024 (prior year) Schedule B Part I
2b. Dividends from self-employment 2025 (most recent)
📍 Schedule B Part II — match payer EIN to business EIN
2b. Dividends from self-employment 2024 (prior year)
📍 2024 (prior year) Schedule B Part II
Interest and dividends from self-employment averaged 2 years.
UW justification notes
💼
Schedule C — Sole ProprietorConventional$0 / mo
Form 1084 Lines 3a–3g — from borrower's Schedule C (2024 & 2025)
3a. Net profit / (loss) 2025 (most recent)
📍 Schedule C Line 31 — 2024 return (prior year) (most recent)
3a. Net profit / (loss) 2024 (prior year)
📍 Schedule C Line 31 — 2024 return (prior year)
3b. Nonrecurring other income 2025 (+/–) (most recent)
📍 Schedule C Line 6 (other income) — deduct if one-time
3b. Nonrecurring other income 2024 (+/–) (prior year)
📍 2024 (prior year) Schedule C Line 6
3c. Depletion add-back 2025 (+) (most recent)
📍 Schedule C Line 12
3c. Depletion add-back 2024 (+) (prior year)
📍 2024 (prior year) Schedule C Line 12
3d. Depreciation add-back 2025 (+) (most recent)
📍 Schedule C Line 13 (also add vehicle depreciation factor from standard mileage)
3d. Depreciation add-back 2024 (+) (prior year)
📍 2024 (prior year) Schedule C Line 13
3e. Non-deductible meals/travel 2025 (–) (most recent)
📍 Schedule C Line 24b — 50% disallowed meals portion must be subtracted
3e. Non-deductible meals/travel 2024 (–) (prior year)
📍 2024 (prior year) Schedule C Line 24b
3f. Business use of home 2025 (+) (most recent)
📍 Schedule C Line 30 — home office deduction add-back
3f. Business use of home 2024 (+) (prior year)
📍 2024 (prior year) Schedule C Line 30
3g. Amortization / casualty loss 2025 (+) (most recent)
📍 Schedule C Part V other expenses or Form 4684 — non-recurring only
3g. Amortization / casualty loss 2024 (+) (prior year)
📍 2024 (prior year) Schedule C Part V other expenses
Business income stability check
Business cash on hand
📍 Business bank statement ending balance
Monthly business obligations
Debts not appearing on personal credit report
Enter business financials to assess stability.
Adjusted income = net profit + add-backs − subtractions. Averaged 2 years ÷ 24 months.
UW justification notes
📈
Schedule D — Capital GainsConventional$0 / mo
Form 1084 Line 4a — recurring capital gains only
Only include capital gains that recur regularly (e.g. annual K-1 pass-through business gains). Sporadic or one-time gains (property sale, stock liquidation) must be excluded. Capital losses do NOT need to be counted as liabilities.
4a. Recurring capital gains 2025 (most recent)
📍 Schedule D — identify recurring business gains passed through on K-1 only
4a. Recurring capital gains 2024 (prior year)
📍 2024 (prior year) Schedule D — same recurring gain source
Recurring gains averaged 2 years. Document that gains recur annually before including.
UW justification notes
🏠
Schedule E — Rental Income & RoyaltiesConventional$0 / mo
Rental properties — use Fannie Form 1037 (subject) or 1038 (investment) per property
Schedule E Lines 5a–5c — Royalty income (if applicable)
5a. Royalties received 2025 (most recent)
📍 Schedule E Part I Line 4 (royalties received)
5a. Royalties received 2024 (prior year)
📍 2024 (prior year) Schedule E Part I Line 4
5b. Royalty expenses 2025 (–) (most recent)
📍 Schedule E Part I — total expenses column for royalty property
5b. Royalty expenses 2024 (–) (prior year)
📍 2024 (prior year) Schedule E expenses column
5c. Royalty depletion add-back 2025 (+) (most recent)
📍 Schedule E Part I — depletion line for royalty income
5c. Royalty depletion add-back 2024 (+) (prior year)
📍 2024 (prior year) Schedule E depletion line
Conv: rental from subject property requires 30% equity or signed lease. Investment rentals require 2-yr landlord history.
Net rental + royalty income will appear here after entering property data above.
UW justification notes
🚜
Schedule F — Farming IncomeConventional$0 / mo
Form 1084 Lines 6a–6f — from borrower's Schedule F (2024 & 2025)
6a. Net farm profit / (loss) 2025 (most recent)
📍 Schedule F Line 34 (accrual) or Line 9 (cash basis)
6a. Net farm profit / (loss) 2024 (prior year)
📍 2024 (prior year) Schedule F Line 34 or Line 9
6b. Non-taxable CCC / coop payments 2025 (+) (most recent)
📍 Schedule F Lines 4a/4b — federal ag program non-taxable portion only
6b. Non-taxable CCC / coop payments 2024 (+) (prior year)
📍 2024 (prior year) Schedule F Lines 4a/4b
6c. Nonrecurring other income 2025 (+/–) (most recent)
📍 Schedule F Line 8 (other income) — deduct if not recurring
6c. Nonrecurring other income 2024 (+/–) (prior year)
📍 2024 (prior year) Schedule F Line 8
6d. Depreciation add-back 2025 (+) (most recent)
📍 Schedule F Line 14
6d. Depreciation add-back 2024 (+) (prior year)
📍 2024 (prior year) Schedule F Line 14
6e. Amortization / casualty / depletion 2025 (+) (most recent)
📍 Schedule F other expenses section or Form 4684
6e. Amortization / casualty / depletion 2024 (+) (prior year)
📍 2024 (prior year) Schedule F other expenses
6f. Business use of home 2025 (+) (most recent)
📍 Schedule F Line 32 (farm house expenses)
6f. Business use of home 2024 (+) (prior year)
📍 2024 (prior year) Schedule F Line 32
Farm income adjusted and averaged 2 years per Form 1084.
UW justification notes
🤝
Form 1065 — PartnershipConventional$0 / mo
Step 1 — Schedule K-1 (Form 1065) Lines 7a–7c • Documents needed: K-1 2024 & 2025 + 1065 business return 2024 & 2025
Borrower must have ≥25% ownership. Income usable only if K-1 shows documented distribution history OR business liquidity is confirmed separately.
7a. Ordinary income / (loss) 2025 (most recent)
📍 Schedule K-1 (Form 1065) Box 1
7a. Ordinary income / (loss) 2024 (prior year)
📍 2024 (prior year) K-1 (Form 1065) Box 1
7b. Net rental real estate income 2025 (most recent)
📍 K-1 (Form 1065) Box 2 and/or Box 3
7b. Net rental real estate income 2024 (prior year)
📍 2024 (prior year) K-1 Box 2 and/or Box 3
7c. Guaranteed payments 2025 (most recent)
📍 K-1 (Form 1065) Box 4 — need 2-yr receipt history
7c. Guaranteed payments 2024 (prior year)
📍 2024 (prior year) K-1 Box 4
Step 2 — Form 1065 business return adjustments (Lines 8a–8g) • Pull from the partnership's 1065 tax return
8a. Income from other partnerships 2025 (+/–) (most recent)
📍 Form 1065 Page 1 Line 4 — deduct unless separately documented
8a. Income from other partnerships 2024 (+/–) (prior year)
📍 2024 (prior year) Form 1065 Page 1 Line 4
8b. Nonrecurring other income 2025 (+/–) (most recent)
📍 Form 1065 Page 1 Line 7 (other income) — deduct if one-time
8b. Nonrecurring other income 2024 (+/–) (prior year)
📍 2024 (prior year) Form 1065 Page 1 Line 7
8c. Depreciation add-back 2025 (+) (most recent)
📍 Form 1065 Page 1 Line 16a AND/OR Form 8825 Line 14
8c. Depreciation add-back 2024 (+) (prior year)
📍 2024 (prior year) Form 1065 Line 16a and/or Form 8825
8d. Depletion add-back 2025 (+) (most recent)
📍 Form 1065 Page 1 Line 17
8d. Depletion add-back 2024 (+) (prior year)
📍 2024 (prior year) Form 1065 Line 17
8e. Amortization / casualty loss 2025 (+) (most recent)
📍 Form 1065 Page 1 other deductions or Form 4684
8e. Amortization / casualty loss 2024 (+) (prior year)
📍 2024 (prior year) Form 1065 other deductions
8f. Mortgages/notes payable <1 yr 2024 (–)
📍 Form 1065 Schedule L Line 18 — END of year column only
8f. Mortgages/notes payable <1 yr 2025 (–)
📍 2024 (prior year) Form 1065 Schedule L Line 18 end-of-year
8g. Non-deductible travel/entertainment 2025 (–) (most recent)
📍 Form 1065 Schedule M-1 Line 4b — excluded meals/entertainment
8g. Non-deductible travel/entertainment 2024 (–) (prior year)
📍 2024 (prior year) Form 1065 Schedule M-1 Line 4b
Borrower ownership %
📍 Schedule K-1 — ending % of capital ownership (front of K-1)
Partnership stability check
Income trend year over year
Business operating since (year)
📍 First year return filed — check IRS transcript or CPA letter
Select trend and operating year to check stability.
Total = (K-1 income + adjustments) × ownership% + guaranteed payments, averaged 2 years.
UW justification notes
🏢
Form 1120-S — S-CorporationConventional$0 / mo
Step 1 — W-2 wages from S-Corp • Documents needed: borrower's W-2 + K-1 (Form 1120-S) + 1120-S business return, 2024 & 2025
Borrower must own ≥25%. Verify W-2 EIN matches S-Corp EIN. Cross-reference W-2 wages with 1120-S Line 7 (compensation of officers).
W-2 wages from S-Corp 2025 (most recent)
📍 Borrower's W-2 Box 1 where EIN = S-Corp EIN (confirm on 1120-S Line 7)
W-2 wages from S-Corp 2024 (prior year)
📍 Prior year W-2 Box 1 from same S-Corp entity
Step 2 — Schedule K-1 (Form 1120-S) Lines 9a–9b
9a. Ordinary income / (loss) 2025 (most recent)
📍 Schedule K-1 (Form 1120-S) Box 1 — shareholder's ordinary income
9a. Ordinary income / (loss) 2024 (prior year)
📍 2024 (prior year) K-1 (Form 1120-S) Box 1
9b. Net rental real estate income 2025 (most recent)
📍 K-1 (Form 1120-S) Box 2 and/or Box 3
9b. Net rental real estate income 2024 (prior year)
📍 2024 (prior year) K-1 Box 2 and/or Box 3
Step 3 — Form 1120-S business return adjustments (Lines 10a–10f) • Pull from the 1120-S return itself
10a. Nonrecurring other income 2025 (+/–) (most recent)
📍 Form 1120-S Page 1 Line 5 (other income) — deduct if one-time (PPP, lawsuit, asset sale)
10a. Nonrecurring other income 2024 (+/–) (prior year)
📍 2025 1120-S Page 1 Line 5
10b. Depreciation add-back 2025 (+) (most recent)
📍 Form 1120-S Page 1 Line 14 AND/OR Form 8825 Line 14 if S-Corp owns real estate
10b. Depreciation add-back 2024 (+) (prior year)
📍 2024 (prior year) 1120-S Line 14 and/or Form 8825
10c. Depletion add-back 2025 (+) (most recent)
📍 Form 1120-S Page 1 Line 15 — usually $0 unless oil/gas/mining
10c. Depletion add-back 2024 (+) (prior year)
📍 2025 1120-S Line 15
10d. Amortization / casualty loss 2025 (+) (most recent)
📍 Form 1120-S Schedule K Line 11 or other deductions detail — amortization only
10d. Amortization / casualty loss 2024 (+) (prior year)
📍 2024 (prior year) 1120-S Schedule K Line 11
10e. Mortgages/notes payable <1 yr 2025 (–) (most recent)
📍 Form 1120-S Schedule L (Balance Sheet) Line 18 — END of year column only
10e. Mortgages/notes payable <1 yr 2024 (–) (prior year)
📍 2024 (prior year) 1120-S Schedule L Line 18 end-of-year column
10f. Non-deductible travel/entertainment 2025 (–) (most recent)
📍 Form 1120-S Schedule M-1 Line 3b — meals/entertainment excluded for tax
10f. Non-deductible travel/entertainment 2024 (–) (prior year)
📍 2024 (prior year) 1120-S Schedule M-1 Line 3b
Borrower ownership % of stock
📍 Schedule K-1 (Form 1120-S) front page — ending % of stock ownership
S-Corp business stability check
Business bank account balance
📍 Business checking/savings — most recent statement ending balance
Monthly business overhead / obligations
Debts not appearing on borrower's personal credit report
Enter business financials to assess stability.
Qualifying income = W-2 wages + (ordinary income + rental income + adjustments) × ownership%, averaged 2 years.
UW justification notes
🏛
Form 1120 — C-CorporationConventional$0 / mo
Form 1084 Lines 11a–11m — from Form 1120 business return (2024 & 2025)
C-Corp income usable ONLY when borrower owns 100% of the corporation AND business has adequate liquidity to support withdrawal of earnings.
11a. Taxable income 2025 (most recent)
📍 Form 1120 Page 1 Line 30
11a. Taxable income 2024 (prior year)
📍 2024 (prior year) Form 1120 Page 1 Line 30
11b. Total tax 2025 (–) (most recent)
📍 Form 1120 Page 1 Line 31
11b. Total tax 2024 (–) (prior year)
📍 2024 (prior year) Form 1120 Page 1 Line 31
11c. Nonrecurring gains / losses 2025 (+/–) (most recent)
📍 Form 1120 Schedule D or Page 1 — deduct gains unless recurring
11c. Nonrecurring gains / losses 2024 (+/–) (prior year)
📍 2024 (prior year) Form 1120 Schedule D
11d. Nonrecurring other income 2025 (+/–) (most recent)
📍 Form 1120 Page 1 Line 10 (other income) — deduct if one-time
11d. Nonrecurring other income 2024 (+/–) (prior year)
📍 2024 (prior year) Form 1120 Page 1 Line 10
11e. Depreciation add-back 2025 (+) (most recent)
📍 Form 1120 Page 1 Line 20
11e. Depreciation add-back 2024 (+) (prior year)
📍 2024 (prior year) Form 1120 Page 1 Line 20
11f. Depletion add-back 2025 (+) (most recent)
📍 Form 1120 Page 1 Line 21
11f. Depletion add-back 2024 (+) (prior year)
📍 2024 (prior year) Form 1120 Page 1 Line 21
11g. Amortization / casualty loss 2025 (+) (most recent)
📍 Form 1120 other deductions schedule or Form 4684
11g. Amortization / casualty loss 2024 (+) (prior year)
📍 2024 (prior year) Form 1120 other deductions
11h. Net operating loss / special deductions 2025 (+) (most recent)
📍 Form 1120 Page 1 Line 29a (NOL deduction)
11h. Net operating loss / special deductions 2024 (+) (prior year)
📍 2024 (prior year) Form 1120 Page 1 Line 29a
11i. Mortgages/notes payable <1 yr 2025 (–) (most recent)
📍 Form 1120 Schedule L Line 18 — END of year column only
11i. Mortgages/notes payable <1 yr 2024 (–) (prior year)
📍 2024 (prior year) Form 1120 Schedule L Line 18 end-of-year
11j. Non-deductible travel/entertainment 2025 (–) (most recent)
📍 Form 1120 Schedule M-1 Line 5b — excluded meals/entertainment
11j. Non-deductible travel/entertainment 2024 (–) (prior year)
📍 2024 (prior year) Form 1120 Schedule M-1 Line 5b
11l. Dividends paid to borrower 2025 (–) (most recent)
📍 Form 1120 Schedule M-2 — subtract to avoid double-counting with Schedule B
11l. Dividends paid to borrower 2024 (–) (prior year)
📍 2024 (prior year) Form 1120 Schedule M-2
C-Corp income requires 100% ownership AND confirmed business liquidity to support withdrawal of earnings.
Form 1120 total averaged 2 years per Form 1084 Line 11m.
UW justification notes
🏦
Retirement / Social SecurityConventional$0 / mo
Social Security, pension, and retirement income
Monthly SS benefit amount
📍 SSA Award Letter or 1099-SSA Box 5 (net benefit paid)
SS income tax status
📍 1040 Line 6b — if taxable SS > $0 it is taxable; check SSA letter for withholding
Pension / annuity / 1099-R (monthly)
📍 1099-R Box 1 (gross distribution) ÷ 12 — must document 3-yr continuance
IRA / asset depletion (monthly)
📍 Non-QM only: total eligible assets ÷ 360 months
Asset depletion / IRA draw income excluded on Conventional, FHA, and VA. Leave blank unless Non-QM program selected above.
Non-taxable SS grossed up 1.25× per agency guidelines. Pension requires 3-yr continuance documentation.
UW justification notes
