Your Income is Dropping? Here's What Lenders Do Next скачать в хорошем качестве

Your Income is Dropping? Here's What Lenders Do Next

How do mortgage underwriters calculate qualifying income? If your paycheck doesn't match your mortgage approval amount, here's the underwriter's formula — step by step, dollar by dollar. You earn $120,000 a year… so why did the lender only qualify you on $85,000? 👉 Have a question about YOUR qualifying income? Ask confidentially here: https://www.seanbiggins.com/YouTube After 36 years in mortgage banking and thousands of closed loans, I've seen buyers lose homes simply because they didn't understand how income is analyzed. Whether you're a first-time home buyer, self-employed borrower, or trying to understand your debt-to-income ratio — this is the underwriter's playbook. We cover: • The Ability-to-Repay (ATR) Rule — What "verified, documented, stable, and likely to continue" really means under CFPB Regulation Z. • Lender Overlays — Why some lenders are stricter than Fannie Mae, Freddie Mac, FHA, or VA guidelines. • Base vs. Variable Income — Overtime, bonuses, commissions, 2-year averaging, and how declining income impacts approval. • Self-Employed Income — Why underwriters use tax returns (net profit, not gross revenue), depreciation add-backs, and documentation requirements. • Employment Gaps & W-2 to 1099 Changes — The 6-month rule and how switching to 1099/self-employment can reset your qualifying clock. • Grossing Up Non-Taxable Income — How Social Security, VA disability, and child support may be adjusted 15–25% to improve your debt-to-income ratio. Key Takeaways • Underwriters typically average 2 years of variable income • Self-employed qualifying income = net profit, not gross revenue • A 6+ month employment gap can require requalification • Non-taxable income (VA disability, Social Security) may be grossed up up to 25% Official Underwriting Guidelines Referenced: Fannie Mae Selling Guide https://selling-guide.fanniemae.com/ Freddie Mac Seller/Servicer Guide (Chapter 5300 Stable Monthly Income) https://guide.freddiemac.com/ FHA Handbook 4000.1 https://www.hud.gov/program_offices/h... VA Pamphlet 26-7, Chapter 4 – Credit Underwriting (KnowVA) https://www.knowva.ebenefits.va.gov/s... CFPB Ability-to-Repay Rule (Regulation Z §1026.43) https://www.consumerfinance.gov/rules... I'm Sean Biggins — 36-year mortgage veteran and Realtor®. No hype. Just underwriting mechanics explained clearly. Need a trusted agent referral anywhere in the U.S.? Request here: https://www.seanbiggins.com/contact.php (Referral fees may apply; no additional cost to you.) Confidential question? https://www.seanbiggins.com/YouTube SC Realtor License #139940 #MortgageUnderwriting #QualifyingIncome #DebtToIncomeRatio #FirstTimeHomeBuyer #SelfEmployedMortgage Educational content only. Not legal, tax, or financial advice. Guidelines and regulations change. Always consult licensed professionals regarding your specific situation.