Tag: Business Income

PPP/SBA Loans During Pandemic & Business Income

Question: How does the Payroll Protection Loan from the Small Business Administration help or hurt a business when we are qualifying them for a mortgage loan? Answer: The SBA loans will have little to no impact with regard to qualifying for a mortgage. The agencies consider these types of assistance to be temporary. Therefore, the […]

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Determining the Financial Strength of a Self-Employed Borrower

Question: My client owns a business and I am trying to decide the best way to demonstrate the criteria of “the ability of the business to continue generating and distributing sufficient income to enable the borrower to make the payments on the requested mortgage” as required by Fannie Mae.  What are your suggestions? Answer: Fannie […]

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Fannie Mae – Self-Employed Income: Can I use the personal returns of a self-employed borrower to document income, or do I also need business tax returns? [NEW Calculator – Fannie Mae Form 1088 – Business Income Comparative Analysis]

Answer: This really depends on whether or not your borrower meets the exception for waiving the requirement for business tax returns.  See the highlighted portion below.  If your borrower is not exempt, then the lender will need to evaluate the business income.  If the business income is required to be analyzed, Fannie Mae has a […]

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