Residential · Calculator
Income Qualifier
Pick how the borrower earns a living, copy the numbers from the pay stub or tax return line by line, and see the qualifying income under Conventional, FHA and VA side by side.
Step 1
How does the borrower earn a living?
Pick every type that applies. Add the same type twice for a second job, a co-borrower or another property.
Frequently asked
About this calculator.
How do lenders calculate self-employed income from a Schedule C?
Start with net profit on Schedule C, Line 31. Fannie Mae Form 1084 then adds back depletion (Line 12), depreciation (Line 13), business use of home (Line 30) and amortization or casualty loss, subtracts one-time other income (Line 6) and the non-deductible half of meals (Line 24b), and adds back the depreciation portion of the standard mileage rate for business miles (Line 44a). The result for each year is averaged over 24 months when income is stable or rising.
Why is qualifying income different for Conventional, FHA and VA?
Each program has its own rulebook. FHA uses the lesser of the two-year average or the most recent year, so rising income is averaged down. Fannie Mae allows the most recent year alone when the business is five years old and the borrower has owned 25% or more the whole time. Fannie Mae Form 1084 adds back mileage depreciation; HUD Handbook 4000.1 does not mention it. VA files are analyzed the same way as Conventional. When income is declining, every program falls back to the most recent year. The same tax return can produce different incomes.
How much is the mileage depreciation add-back?
It is the business miles on Schedule C, Line 44a multiplied by the depreciation portion of the IRS standard mileage rate for that tax year: 28 cents per mile for 2023, 30 cents for 2024, 33 cents for 2025 and 35 cents for 2026. On 10,000 business miles in 2025 that adds $3,300 to annual qualifying income under Fannie Mae Form 1084.
How is Social Security income grossed up?
Non-taxable income can be increased because the borrower keeps all of it. Fannie Mae adds 25% of the non-taxable portion, and treats 15% of Social Security as non-taxable with no documentation. FHA adds the greater of 15% or the borrower’s tax rate for the previous year. VA uses 125% of the non-taxable income, for the debt-to-income ratio only. A $2,000 fully non-taxable benefit counts as $2,500 for Conventional and VA and $2,300 for FHA at the 15% rate.
How is S corporation income calculated for a mortgage?
Add the W-2 wages the corporation paid the borrower to the ordinary income on the K-1 (Box 1), then add the borrower’s ownership share of the corporate adjustments: depreciation, depletion and amortization added back, and notes payable in less than one year and excluded travel and entertainment subtracted. Fannie Mae counts the K-1 income only if the borrower actually received distributions or the business has enough liquidity to support them.
Can rent from the home I am moving out of count as income?
Only to offset that home’s payment. Under Fannie Mae’s departing-residence rule (B3-3.8-05, mandatory for applications dated November 1, 2026 or later) 75% of market rent is set against the payment and any surplus is ignored. FHA counts the rent only when the borrower is relocating more than 100 miles away and has at least 25% equity. VA allows the rent to offset the payment and never adds it to income.
Is the information I enter saved?
No. The calculator runs entirely in your browser. Nothing is stored or transmitted, and closing the page clears it. Use the print button to save the worksheet as a PDF for the loan file.
Income is where files are won
Not sure which program fits? Ask us.
Self-employed, commissioned, retired or a mix: send us the returns and we will run the income every way the guidelines allow before you apply.
Prefer to talk first? Call (305) 703-9001