Hourly Income
Per hour × hours × 52 ÷ 12
YTD / Current
Prior Year
1
Per Hour Rate
$
$
2
Hours Per Week
3
YTD EarningsDivide by months received
$
$
Months Received
Hourly Monthly Income
—
—
Underwriter's Note
Use lowest of: per-hour × hours × 52÷12, YTD average, or W-2 average. If YTD is declining from prior year, use lower amount and confirm reason in LOE.
Salary Income
Monthly · Bi-weekly · Semi-monthly · Weekly
Select Salary Type
1
Monthly (×1)
$
2
Bi-Weekly (×26÷12)
$
3
Semi-Monthly (×24÷12)
$
4
Weekly (×52÷12)
$
YTD & W-2 Verification
5
YTD Salary (paystub)
$
months
6
Prior Year W-2
$
months
7
2nd Prior Year W-2
$
months
Salary Calculation Results
Base Monthly
—
YTD Monthly Avg
—
W-2 Monthly Avg
—
Underwriter's Note
Use base salary type that matches the pay frequency. If YTD or prior year is lower than base — confirm reason. Otherwise use lower of YTD and W-2.
Overtime & Bonus Income
Break out from base salary — 2-year history required
Amount
Months
1
YTD OT / Bonus**Annualize if DU requires YTD only
$
2
Prior Year OT / Bonus
$
3
Additional Year OT / Bonus
$
Monthly OT/Bonus (2-Yr Avg)
—
Underwriter's Note
OT/Bonus requires 2-year receipt history documented on W-2s. If income is declining year over year use the lower year. If no 2-year history — exclude entirely.
Commission Income
Net of 2106 unreimbursed expenses
Commission
2106 Expenses
1
YTD Commission
$
$
2
Prior Year
$
$
3
Additional Year
$
$
YTD Net Monthly
—
PY Net Monthly
—
2-Yr Net Avg/Mo
—
Total W-2 Qualifying Income
Base Salary
$0
OT / Bonus
$0
Commission
$0
Total Monthly Qualifying
$0
Property 1
Property 2
Property 3
Property 4
All Properties
Net Rental Income — All Properties
Total Net Monthly Rental
2025 · Net losses added to liabilities
Underwriter's Note — Net Rental Losses
Net rental losses are typically included with liabilities when calculating the debt ratio. Check applicable guidelines when rental income is declining year to year. This method should not be used when calculating rental income on a borrower's primary residence.
Schedule C & F — P&L Review
Sole proprietorship · 1099 contractor · Farm income
2025
2024
1
P&L Net IncomeSchedule C Line 31
$
$
2
Depreciation ADD-BACKLine 13
$
$
3
Depletion ADD-BACK
$
$
4
Amortization ADD-BACK
$
$
5
Non-Recurring Casualty Loss ADD-BACK
$
$
6
Non-Recurring Loss ADD-BACK
$
$
7
Non-Recurring Income DEDUCT
$
$
8
Other DEDUCT
$
$
Total Net Business Income
$0
$0
Monthly Qualifying Income
$0
$0
Enter both years to see trend analysis
—
—
Underwriter's Note
Consider business liquidity and solvency before using business income. Declining income requires use of lower year only. Add-backs are non-cash items that reduce taxes but are allowable for qualifying.
Form 1065 & 1120S — Partnership / S-Corp
K-1 income with ownership percentage
2025
2024
1
P&L Net Income
$
$
2
Depreciation ADD-BACK
$
$
3
Amortization/Depletion ADD-BACK
$
$
4
Non-Recurring Casualty Loss ADD-BACK
$
$
5
Non-Recurring Income DEDUCT
$
$
6
Other DEDUCT
$
$
P&L Business Subtotal
$0
$0
7
% Ownership from K-1
%
Total Net Business Income
$0
$0
Monthly Qualifying Income
$0
$0
Form 1120 — C-Corporation
Add net business income only if borrower is 100% owner
2025
2024
1
P&L Net Income
$
$
2
Depreciation ADD-BACK
$
$
3
Amortization/Depletion ADD-BACK
$
$
4
Non-Recurring Loss ADD-BACK
$
$
5
Non-Recurring Income DEDUCT
$
$
6
Taxes Paid DEDUCT
$
$
7
Other DEDUCT
$
$
Subtotal Business Income
$0
$0
8
% OwnershipMust be 100% to add to qualifying
Total Net Business Income
$0
$0
Total Qualifying Income Summary
Grand Total Monthly Qualifying
Jennifer Heller
Annual Qualifying
$0
Max DTI 45% Housing
$0
Important — Underwriter Guidance
This calculator provides suggested guidance only and does not replace Fannie Mae, Freddie Mac, FHA, VA, or USDA instructions or applicable guidelines. Always check declining income situations with investor guidelines. Lenders may want to consider current business liquidity and solvency before using business income. Please check with your legal advisors for interpretations of legal and compliance principles applicable to your business.
DISCLAIMER: This calculator is for educational purposes only and does not constitute financial, legal, or mortgage advice. Results do not guarantee loan approval. Individual circumstances vary. Always consult a licensed mortgage professional and verify against current agency guidelines.
Jennifer Heller | NMLS# 2375826 | The Everyday Underwriter, LLC | Equal Housing Lender
© 2026 The Everyday Underwriter MasterClass. All rights reserved. Reproduction prohibited without written permission.
Jennifer Heller | NMLS# 2375826 | The Everyday Underwriter, LLC | Equal Housing Lender
© 2026 The Everyday Underwriter MasterClass. All rights reserved. Reproduction prohibited without written permission.