Self Employed Borrower Worksheet

Borrowers the paycheck protection program ppp authorizes up to 349 billion in forgivable loans to small businesses to pay their employees during the covid 19 crisis. Self employed borrower tools we offer a valuable collection of downloadable calculators and reference guides to help you with calculating and analyzing the average monthly income of self employed borrowers.

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Keep your career on the right track our income analysis tools are designed to help you evaluate qualifying income quickly and easily.

Self employed borrower worksheet. This form is a tool to help the seller calculate the income for a self employed borrower. The seller s calculations must be based on the requirements and guidance for the determination of stable monthly income in topic 5300. Radian s self employed cash flow analysis calculator is designed to assist you in underwriting loan applications from self employed borrowers for coverage with radian mortgage insurance.

Self employed individuals generally must pay self employment tax se tax as well as income tax. Use our pdf worksheets to total numbers by hand or let our excel calculators do the work for you. The self employed income analysis form 1084a or 1084b should be used to determine the borrower s share of the partnership s adjusted business income that will be available for qualifying the borrower for the mortgage if the borrower is able to provide evidence that he or she has access to the funds.

When determining the appropriate qualifying income for a self employed borrower it is important to note that business income specifically from a partnership or s corporation reported on an individual irs form 1040 may not necessarily represent income that has actually been distributed to the borrower. Form 91 is to be used to document the seller s calculation of the income for a self employed borrower. Both general and limited partnerships.

Our cash flow analysis worksheets promote ease and accuracy in determining self employed borrowers income. Se tax is a social security and medicare tax primarily for individuals who work for themselves. It is similar to the social security and medicare taxes withheld from the pay of most wage earners.

Click here to download and begin using radian s self employed cash flow analysis calculator. As business owners self employed borrowers goal is to maximize income yet reduce tax liability. A self employed borrower s share of partnership or s corporation earnings can only be considered if the lender obtains documentation such as schedule k 1 verifying that the income was actually distributed to the borrower or the business has adequate liquidity to support the withdrawal of earnings.

The problem with that is reducing tax liabilities minimizes taxable income and makes qualifying for a loan more challenging.

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