Simplifying Income Calculation for Conventional Loans

Are you aware of the unique income calculation guidelines offered by MortgageDepot for conventional loans?

Varied Income Sources

At MortgageDepot, we understand that not all income types should be averaged over 24 months. We consider various income sources, including but not limited to:

– Commissions
– Overtime
– Bonus
– Tips
– National Reserve/Guard pay
– Unemployment benefits (seasonal workers ONLY)

Calculation Method

If an additional income source has been consistent for at least 12 months and shows an increasing trend, we allow the income calculation to be based on the most previous year and the year-to-date (YTD) income divided by the number of months.

Additional Analysis for Income Increase

According to Freddie Mac guidelines, if there is an increase of 10% or more in income year after year, our Underwriters conduct further analysis to determine if the higher amount can be used.

Declining Income Considerations

At MortgageDepot, we never average declining income from the previous year. Instead, we rely on the YTD total. However, if there is a decline of 10% or more, our Underwriters obtain additional documentation to assess if the income can be used at all.

We believe in simplifying the income calculation process for conventional loans, ensuring transparency and flexibility for our borrowers. By considering a wide range of income sources and implementing specific guidelines, we aim to provide exceptional service and support throughout the loan process.

At MortgageDepot, we are committed to delivering the best conventional loan solutions to our clients. Whether you are a consumer or a commercial borrower, our knowledgeable sales teams are here to assist you. Stay tuned for our upcoming innovative loan products designed to meet the evolving needs of today’s borrowers.

Choose MortgageDepot as your trusted partner for conventional loans and experience the difference in service and expertise. Contact us today to explore the possibilities and start your journey towards homeownership or investment success.