BankerBroker.com California Home Loans, Mortgage Refinance, No Doc Mortgages, VOE programs Call 1(877)410-MONEY

Search this site
  • Home
    ABA Disclosure
    About BankerBroker.com
    Career
    Contact Us
    Disclaimer
    Gift of Giving
    Legal Notices
    Testimonials
    What is BankerBroker®
    Where we Lend
    Why Us
  • Refinance
    Lower your Payment
    Consolidate your Debt
    Get Cash from your Home / Cash Out
    Keep your Payment from Rising
    Refinance Investment Property
    Contact a Refinance Expert
  • Buying a Home
    First Time Home Buyer
    Moving & Buying a Home
    Buying a Vacation Home
    Real Estate Investors
    Contact a Home Buying Expert
  • Interest Rates
    Best Price Guarantee
    How to get lower Rates, Tips
    FAQ
    Markets
    8 day closing
  • Loan Programs
    Applied Finance
    Motion Picture Entertainment Financing
    Commercial Loans
    DU Refinance HARP 2.0
    FHA Home Loans
    HUD Reverse Mortgage
    NO DOC, NINA, SIVA, SISA Home Loans
    Private HardMoney
    Streamline Refinance
    USDA Loans
    VOE Home Loan (Verification of Employment)
    VA Loans CALVET
  • Resources
    BankerBroker Documents
    Fees & Closing Costs
    FHA Links
    Forms & Disclosure
    Glossary
    Link Exchange
    Look Up License
    Mortgage Terminology
    Property Tax Links
    Video
    REO Links
  • Mortgage Calculators
  • News Blog
    National Mortgage News
    Questions & Answers
  • Free Home Valuation
  • Apply Now for a Mortgage in California
  • Sitemap

Calculations of Self Employed Income For Full Doc loans

Self-Employment Income.
Net income from self-employment shall be based on the previous two years Federal tax returns in addition to, if available, current years income and expenses. Self-employment income can be calculated as follows: 

A two year average of the net profit (item # 31 on 1040 Schedule C or item # 36 on 1040 Schedule F) typically serves as self-employment income for loan purposes. In addition, it is permissible to add back to the net profit certain deductible items, specifically: 
  • Depletion (item # 12 on Schedule C);
  • Depreciation (item # 13 on Schedule C, or item # 16 on Schedule F);
  • Interest (items #16a and #16b on Schedule C, or items # 23a and # 23b on Schedule F)
Comments

Sign in|Recent Site Activity|Report Abuse|Print Page|Powered By Google Sites