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Ordinary income from the corporation can be used to qualify the borrower only if the following requirements are met All documentation used to establish stable monthly income must be retained in the mortgage file. The business income must be stable and consistent, the sales and earnings trends must be positive, and the business must have adequate liquidity to support the borrower’s withdrawals of cash without having severe negative effects.
Calculating income from 1040, k1 & 1120s (s corporation) tax return review series december 2017 The rationale for determining that the source and the amount of the qualifying income are stable, including any rationale applicable to the stability, history, calculation and continuance of the income mortgage file documentation The stable and reliable flow of income is a key consideration in mortgage loan underwriting
Individuals who change jobs frequently, but who are nevertheless able to earn consistent and predictable income, are also considered to have a reliable flow of income for qualifying purposes.
Retained earnings are a firm’s cumulative net earnings or profit after accounting for dividend payments They’re also referred to as the earnings surplus. The new, user friendly seller/servicer guide will make it significantly easier for you and your team to find, understand and share critical information. The stability of the borrower’s income, the location and nature of the borrower’s business, the demand for the product or service offered by the business, the financial strength of the.
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