SELF EMPLOYED BORROWER USING IRS FORM 1120
This document will review how to navigate the UberWriter income analysis tool including the following topics
A) Using IRS Tax Form 1120 to determine income for your self-employed borrower
Fannie Mae B3-3-4-03 Analyzing Returns for a corporation
Freddie Mac 5304.1
FHA Appendix 2.0
Step by step instructions
A) Using the IRS Tax Form 1120 to determine your self-employed borrower’s income
Your borrower should have 1120 self-employed income type for the calculator
On the income tab choose the borrower the income is being evaluated for
Click the magnifying glass next to the 11120 income calculator
Enter the most recent tax year being evaluated
The left column is always the most recent year and the right column is the previous year
Enter the income from the borrower W-2 form if applicable
Enter the cash flow adjustments found on the business IRS 1120 forms if applicable
NOTE: UberWriter contains “pop up” messages for income fields with additional requirements to ensure the most accurate income calculation is determined. For example if you enter a number into line 17D (mortgage notes bonds due in less than 1 year) UberWriter will remind you that this does not need to be deducted from the income if the business has enough cash or the CPA confirms the debt can “roll over”.
Click the save/calculate button on the left side of the screen to complete income analysis.
Use the income analysis section to choose the correct qualified income analysis
1 Year Average
2 Year Average
User override ignores all calculations and will report the income submitted as the qualified income.
Notes in regard to the borrowers income can be entered in for review by the underwriter, auditor, or investor.
Income notices embedded in calculator
Fannie Mae B3-3. 4-03 // FHLMC 5304.1 // FHA Appendix 2.0