INCOME

Tax Return Income Analysis

Walk through Form 1040, Schedules B, C, D, E and F, and entity returns. Compare adjusted cash flow across tax years before selecting an income basis.

Business Liquidity Ratios Rental Income

Fannie MaeLast agency guidance update: Not yet verifiedLast verified: Nov 9, 2026Effective date: Not yet verified

Freddie MacLast agency guidance update: Not yet verifiedLast verified: Nov 9, 2026Effective date: Not yet verified

HUD / FHALast agency guidance update: Not yet verifiedLast verified: Nov 9, 2026Effective date: Not yet verified

VALast agency guidance update: Not yet verifiedLast verified: Nov 9, 2026Effective date: Not yet verified

Agency guidanceSee verification scopeView guideline history

Fannie MaeForm 1084, Cash Flow Analysis ↗

Source publication: Not yet verified
Last verified: Nov 9, 2026
Effective date: Not yet verified

Sources and allowable adjustment categories for supported individual schedules and business returns.

Fannie MaeB3-3.5-01, Self-Employment ↗

Source publication: Not yet verified
Last verified: Nov 9, 2026
Effective date: Not yet verified

Verify required years, income stability, access, and business analysis.

Fannie MaeB3-3.7-03, Corporate Returns ↗

Source publication: Jun 5, 2019
Last verified: Nov 9, 2026
Effective date: Not yet verified

Review ownership, distributions, corporate cash-flow adjustments and double counting.

Freddie MacForm 91, Income Calculations ↗

Source publication: Not yet verified
Last verified: Nov 9, 2026
Effective date: Not yet verified

Use the current Form 91 adjustment treatment and verify business access before including positive earnings.

HUD / FHAHandbook 4000.1, Self-Employment Income ↗

Source publication: Not yet verified
Last verified: Nov 9, 2026
Effective date: Not yet verified

Required history and documentation differ. The worksheet does not apply a conventional income finding to FHA.

VALender’s Handbook, Ch. 4 § 2 ↗

Source publication: Not yet verified
Last verified: Nov 9, 2026
Effective date: Not yet verified

Review years, fluctuations, current financials and ability to access business income.

01 / SCENARIO

Inputs

Start with the example or enter your own figures. You can type dollar amounts above the slider ranges.

Agency

Documented tax return period

Income trend or decision basis

Form 1040 and Schedule B / Eligible W-2 wages · recent

Form 1040 and Schedule B / Eligible interest and dividends · recent

Form 1040 and Schedule B / Eligible pension, IRA and Social Security · recent

Form 1040 and Schedule B / Other verified recurring Form 1040 income · recent

Additional tax return sections

Select each schedule or entity return that applies. Enter the borrower’s share where indicated and avoid counting the same income twice.

Schedule C · sole proprietorship

Schedule D · capital gains

Schedule E · property or royalty

Schedule F · farm income

1065 / 1120-S · Schedule K-1 and entity return

1120 · C corporation

02 / WORKSHEET

Results

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MortgageRisk is independent of the agencies cited. Results are for professional review and do not constitute an underwriting decision or loan approval.

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