RC_LP_U_306.2 Evaluating Sole Proprietorships
Determining qualifying income for self-employed borrowers can be more challenging than for their salaried counterparts. It involves careful review of sometimes complex tax returns and analysis of what income reported can be used to qualify for a mortgage loan. This course examines how to perform this review and analysis for borrowers with sole proprietorship businesses, discussing what tax forms to expect with this particular business structure, and how reported income should be adjusted to calculate qualifying income.
The Evaluating Sole Proprietorships course begins with a look at characteristics of sole proprietorships. Next, it looks at documentation requirements for Fannie Mae and Freddie Mac. Finally, it describes how to determine allowable income for sole proprietors using Schedule C and the Fannie Mae Cash Flow Analysis (Form 1084)
This is a single-family/residential course.
Seat time approximately 1 hour.