m. All guidance specific to COVID-19 will be communicated through Lender Letters . Home Possible Income Limit – For the specific census tract, this is the maximum borrower income allowed to qualify for Home Possible. Biweekly. This is the total amount of eligible assets minus the following: The amount of any penalties that would apply if the assets were distributed early. For manually underwritten loans, the income from a non-occupant borrower may be considered as acceptable qualifying income. Determining the Need for Federal Income Tax Returns. Depository Assets. If your mortgage is owned or guaranteed by either Freddie Mac or Fannie Mae, you may be eligible toYou can calculate your DTI ratio by dividing your recurring minimum expenses by your total monthly income. Refer to B3-3. Sign-In Seller/Servicer ID Business Role: Looking for the servicing policy? Not a customer?. a copy of retirement award letter or benefit statement, a copy of financial or bank account statement, a copy of signed federal income tax return, an IRS W-2 form, or. To calculate asset depletion income for Fannie Mae, you will need to follow these steps: 1. 2-01, Underwriting Factors and Documentation for a Self-Employed Borrower. Non-taxable income refers to earnings that are exempt from income taxes. So, $1,000 a month in child support counts as $1,250 a month. Fannie Mae permits lenders to request specific or limited documentation from the IRS when submitting a request with the borrower’s consent on IRS Form 4506-C (such as requesting only the transcript for forms W2 or 1099), rather than always requiring the full transcript of the borrower’s personal income tax return (aka Form 1040). Home, 80 percent. Individuals who change jobs frequently, but who are nevertheless able to earn consistent and predictable income, are also considered to. 1, Employment and Other Sources of Income. The employment offer must clearly state the borrower has fixed base income (e. Stable and Predictable Income. (Weekly gross pay x 52 pay periods) / 12 months. 1-09, Other Sources of Income. The date of the completed form must comply with B1-1-03, Allowable Age of Credit Documents and Federal Income Tax Returns . The required documentation to verify income disclosed by the Borrower(s) on Form 710, Mortgage Assistance Application, and the corresponding methods to calculate the income from each type are provided in this exhibit. Verification of Retirement, Government Annuity, and Pension Income Document current receipt of the income, as verified by. an IRS 1099 form. This is the total amount of eligible assets minus the following: The amount of any penalties that would apply if the assets were distributed early. The statement must specify the income type, amount. 1-01, General Income Information, for additional information. Obtain a copy of the borrower’s disability policy or benefits statement from the benefits payer (insurance company, employer, or other qualified disinterested party) to determine. All of the above calculations must be compared with the documented year-to-date base earnings (and past year earnings, if applicable) to. Funds needed to complete the. PART A Doing Business with Fannie Mae. Social Security, VA, or other government retirement or annuity. CASH FLOW ANALYSIS (Fannie Mae Form 1084) Instructions. of this publication are granted to Fannie Mae-approved lenders, servicers, and other mortgage finance professionals, strictly for their own use in originating mortgages, selling mortgages to Fannie Mae, or servicing mortgages for Fannie Mae. Our sample generally desired immediate over deferred annuities. 1 $11. (Biweekly gross pay x 26 pay periods) / 12 months. the amount and duration of the borrower's “temporary leave income,” which may require multiple documents or sources depending on the type and duration of the leave period; and. Home, 80 percent. The borrower's monthly gross income is defined as the borrower's monthly income amount before any payroll deductions and includes the following items,. checking or savings accounts; investments in stocks, bonds, mutual funds, certificates of deposit, money market funds, and trust accounts; the amount vested in a retirement savings account; and. However, Fannie Mae does allow certain exceptions to this policy for boarder income and properties with accessory units. Be sure to consult your automated underwriting system response and program descriptions. Non-taxable income refers to earnings that are exempt from income taxes. 25% Fannie. 2022. If the property has resale restrictions, see B 5-5. Make sure you have your annuity and tax documents organized before you apply for the loan and you should be well-positioned to qualify. Fannie Mae customers! Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. The following table provides the requirements for employment-related assets that may be used as qualifying income. All of the above calculations must be compared with the documented year-to-date base earnings. Inflation -adjusted annuities are typically offered by. Want to use money that was gifted to you toward your mortgage. Explore Tools and Information to Help with Your Housing Journey. Determine if there is any information outside of the data submitted to DU that could have affected DU's. Launch Ask Poli for Sellers . DU considers the following assets non-liquid assets: Cash Deposit on Sales, Net Worth of Business, Other Non-Liquid Asset, and Unsecured Borrowed Funds. an IRS 1099 form. It does not apply to disability income that is received from the Social Security Administration. Study with Quizlet and memorize flashcards containing terms like Private mortgage insurance (PMI) is usually required on _____ loans with loan-to-value ratios greater than _____ percent. The date of the completed form must comply with B1-1-03, Allowable Age of Credit Documents and Federal Income Tax Returns . This field is located in the Underwriting section of the Loan Detail screen in Loan Delivery. Total qualifying income = supplemental income plus the temporary leave income. DU considers the following assets non-liquid assets: Cash Deposit on Sales, Net Worth of Business, Other Non-Liquid Asset, and Unsecured Borrowed Funds. 02 C Ordinance or Law Insurance. For loan casefiles underwritten through DU, the maximum allowable DTI ratio is. Section 5303. 1, Employment and Other Sources of Income. Total verified liquid assets: $30,000. Tax returns are required if the borrower. Regular income amount: $6,000 per month. All other paystub requirements remain unchanged. Borrowers whose qualifying income is less than or equal to 50% of county area median income may qualify for a Very Low Income Loan. 1, Employment and Other Sources of Income. Maximum LTV, CLTV, and HCLTV Ratio. Subpart B2: Eligibility. While Fannie Mae does not have a stated age minimum for a borrower to use retirement income to qualify, a borrower must have unrestricted access without penalty to use income from certain types of retirement accounts, such as a 401(K), IRA or Keogh account (which may have a minimum age Retirement, Government Annuity, and Pension Income. The Guaranteed Minimum Withdrawal Benefit (GMWB) is a feature of certain annuity contracts. The statement must specify the income type, amount and frequency of the payment, and include confirmation of the initial start date. This verification can be provided by the borrower, by the borrower’s employer, or by a third-party employment verification vendor. These can include various sources such as child support, alimony, social security income, VA benefits, interest income, 401K/pension income, or any other documented income that is deemed non-taxable. ). 1 $3. The most common way for retirees to get a mortgage is by qualifying based on income, said certified financial planner Daniel Graff, a principal and client advisor at. When the borrower owns property – other than the subject property – that is rented, the lender must document the monthly gross (and net) rental income with the borrower’s most recent signed federal income tax return that includes Schedule 1 and Schedule E. When the loan casefile is resubmitted to DU after closing and prior to delivery to Fannie Mae, the lender is responsible for ensuring that: all information provided in the final submission to DU matches the terms of the closed loan;Company to Host Conference Call. The lender must obtain. If income from a government annuity or a pension account will begin on or before the first payment date, document the income with a benefit statement from the organization providing the income. Fannie Mae. When you purchase an annuity, you can choose from several payout. 2-02, Loans with Resale Restrictions: Eligibility, Collateral and Delivery Requirements, for additional requirements. Effective June 12, 2023, the 2023 area median income estimates (AMIs) will be implemented in Desktop Underwriter ® (DU ® ), HomeReady ® Application Programming Interfaces (API), Loan Delivery, the Area Median Income Lookup Tool, and published on the HomeReady ®, RefiNow ®, and Duty to. Gift Funds. 1, Employment and Other Sources of Income. The lender must verify the borrower's income in accordance with Section B3–3. self-employment income. November 1, 2023. Refer to Selling Guide Announcement SEL-2012-13 for details. Note: Ask Poli is an Artificial Intelligence powered search tool. an IRS 1099 form. This type of annuity is designed to help individuals maintain their purchasing power over time, as the payments they receive will increase in response to rising prices. If income from a government annuity or a pension account will begin on or before the first payment date, document the income with a benefit statement from the organization providing the income. For example, if you receive $4,000 a month from fixed income sources and your debt and recurring payments equal $1,000, your DTI ratio is 25%. 32). a cash-out refinance transaction with a DTI ratio greater than 45%. 2-06, Fannie Mae Flex. When submitting rental income to DU for an investment property: The lender should calculate the net rental income amount for each property and enter the amount (either positive or negative) in the Net Monthly Rental Income in Section 3. the conditions of eligibility for these loans, and features such as annuity income calculations used in these loans. the amount and duration of the borrower's “temporary leave income,” which may require multiple documents or sources depending on the type and duration of the leave period; and. However, Fannie Mae does allow certain exceptions to this policy for boarder income and properties with accessory units. Temporary leave income: $2,000 per month. Why were the Fannie Mae Income Limits 2023 adjusted?Fannie Mae customers! Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. Lender must document 3–year continuance. 1 $8. 2-06, Fannie Mae Flex. There may be more coverage offerings. The following table provides verification requirements for retirement, government annuity, and pension income. 3-01,Stocks, Stock Options, Bonds, and Mutual Funds. m. This Job Aid contains requirements when using accessory unit income and boarder income on a HomeReady. If income from a government annuity or a pension account will begin on or before the first payment date, document the income with a benefit statement from the organization providing the income. mortgage credit certificates. a copy of signed federal income tax return, an IRS W-2 form, or. Home, 60 percent. The lender must verify the borrower's income in accordance with Section B3–3. Temporary Leave Income. Cash Value of Life Insurance and Debt-to-Income Ratios. WASHINGTON, DC – Fannie Mae (FNMA/OTCQB) today announced plans to report its second quarter 2023 financial results on Tuesday morning, August 1, 2023, before the opening of U. Base Pay (Salary or Hourly) Income. Lender must document 3–year continuance. Fannie Mae may revoke these limited permissions by written notice to any or all Fannie Mae-approved users. Annuity payout options determine how and when the funds invested in an annuity contract are paid out to the annuity holder. The lender must verify the borrower's income in accordance with Section B3–3. Lender must document 3–year continuance. Fannie Mae’s underwriting guidelines emphasize the continuity of a borrower’s stable income. 3-01, Fannie Mae Short Sale. Note : The policy which required 60% of the vested amount in a retirement account be used was eliminated in November of 2012. For a comprehensive list of resources such as access forms,. This blog covers just some of the basics about establishing income continuance. If the actual amount of federal and state taxes that would generally be. Perez Senior Vice President andFor borrowers putting in sweat equity to their homes for HomeReady loans, Fannie Mae no longer requires a 3% personal funds contribution nor caps the sweat equity contribution towards a down payment. The following table provides the requirements for employment-related assets that may be used as qualifying income. 1-09, Other Sources of Income. 01. Need additional assistance options for your down payment. The policy that permitted this type of income was eliminated in 2009. The requirement to reduce the value of retirement assets consisting of stocks, bonds, and mutual funds by 30% when measuring the three-year continuance for retirement income. Whether you’re just thinking about buying a home or have already started shopping, Fannie Mae offers expert guidance and insight into the homebuying process, your mortgage options, and what to expect along the way. Fannie Mae Homestyle Loan . . Learn MoreIf the borrower is financing a second home or investment property that is underwritten through DU and the borrower will have one to six financed properties, Fannie Mae’s standard eligibility policies apply (for example, LTV ratios and minimum credit scores). The lender must obtain. 1-09, Other Sources of Income, for boarder income requirements, and B5-6-02,. The value of the asset and any related documentation must meet the requirements. This income can offset certain weaknesses that may be. Annuity Income. Freddie Mac HomeOne ℠. You'll need proof of income, such as pay stubs or tax returns, proof of assets, credit history, and more. What are the income eligibility requirements for HomeReady borrowers? Effective July 20, 2019, the income limit for all HomeReady loans is 80% of area median income (AMI) for the property’s location, including properties in low-income census tracts. It's best to gather these documents ahead of time to streamline the application process. To gross up net income, the Servicer must: Establish the Borrower’s monthly net income in accordance with this Section 9202. Retirement, Government Annuity, and Pension Income • Fannie DU – letter from organization, award letter, tax returns, W2 or 1099 OR proof of currentFannie Mae purchases and securitizes mortgages to non-citizens who are lawful permanent or non-permanent residents of the United States under the same terms available to U. Ginnie Mae insures MBSs made up of government-insured or guaranteed loans. These payments can be made for a predetermined period or continue for the annuity holder's lifetime. Fannie Mae Home Price Index . 1-02, Standards for Employment Documentation and B3-3. monthly income from annuities, insurance policies, retirement funds, pensions, disability or death benefits, rental income, and other income such as. Subpart B2: Eligibility. This verification can be provided by the borrower, by the borrower’s employer, or by a third-party employment verification vendor. The statement must specify the income type, amount and frequency of the payment, and include confirmation of the initial start date. The stable and reliable flow of income is a key consideration in mortgage loan underwriting. Choosing an annuity mortgage involves. Fannie Mae Military Housing Loan . com Fannie Mae Mae has just issued an update to the Selling Guide (SEL-2011-04) that affects underwriting of loans as follows: Deferred Student Loans While it has been Fannie Mae’s policy to include payments for deferred student loans in the DTI, Fannie Mae has. 9 Billion for 2022 and $1. current receipt of trust income with one month’s bank statement or other equivalent document. Social Security, VA, or other government retirement or annuity. When a loan casefile receives an Approve/Ineligible recommendation, the lender should: Review the DU loan data for accuracy and verify that all income, assets, and liabilities were accurately recorded and fully disclosed by the borrower. Income (or loss) from secondary self-employment can be excluded if the borrower is using non-self-employment income to qualify (for example, salary or retirement income). Subpart B3: Underwriting Borrowers. Approximately 78% of our participants preferred to pay $100,000 for lifelong cash payments immediately at retirement than to pay. Determine the net documented assets. Borrowers whose qualifying income is greater than 50% and is less than or. 1-09, Other Sources of Income, for boarder income requirements, and B5-6-02,. Weekly. Fannie Mae customers! Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. com. To learn more about sweat equity, click here. In some cases, the total payout through an annuity can exceed the amount received as a lump sum. Using Nontaxable Income to Adjust the Borrower’s Gross Income. The stable and reliable flow of income is a key consideration in mortgage loan underwriting. To learn more about income continuance or to discuss your homebuying and mortgage financing options, contact our team by phone at (855)855-4491 or by email at jvmteam@jvmlending. If income from a government annuity or pension account will begin on or before the first payment date, document the income with a benefit statement from the. Bonus pay at Fannie Mae Corporation ranges from $8,000 to $8,000 annually among. Area median income (AMI) estimates are provided to Fannie Mae by our regulator, the Federal Housing Finance Agency. If retirement income is paid in the form of a distribution from a 401 (k), IRA, or Keogh retirement account, determine whether the income is expected to continue for at least. The lender must verify the borrower's income in accordance with Section B3–3. Determining. HomeReady and Home Possible are commendable initiatives by Fannie Mae and Freddie Mac, respectively, aiming to make homeownership more attainable for low to moderate-income borrowers. Welcome to an improved Seller/Servicer Guide. the borrower’s recent paystub and IRS W-2 forms covering the most recent two-year period. Announcement SEL-2023-10: Selling Guide Updates. $1. Examples of liquid financial assets that can be used for reserves include readily available funds in. The documentation required for each income source is described below. Temporary leave income: $2,000 per month. The lender may use the Request for Verification of Employment (Form 1005) to document income for a salaried or commissioned borrower. Subpart B1: Loan Application Package. The stable and reliable flow of income is a key consideration in mortgage loan underwriting. Going forward, all commission income will be treated the same, and individual tax returns (or tax. Document regular receipt of income for the most recent 12 months. Freddie Mac Home (opens in new window) Single-Family Division (opens in new window). See B3-3. These can include various sources such as child support, alimony, social security income, VA benefits, interest income, 401K/pension income, or any other documented income that is deemed non-taxable. the business provides more than $12 billion of protected income payments. Beware of scamsSelling Notice - Area Median Incomes 2023. the lender must evaluate it according to Fannie Mae’s guidelines for income received from a partnership or an S corporation. This. published by . The primary beneficiary of the trust must be the individual (s) establishing the trust. How Underwriters Calculate Income on Freddie Mac Asset Depletion Mortgages. Fannie Mae lets lenders use a borrower’s retirement assets in one of two ways to help them qualify for a mortgage. 4155. 80% if the owner of the asset (s) being used to qualify is at least 62 years old at the time of closing. For mortgages originated for sale to the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation. Her previous roles included litigation partner at Jenner & Block and general counsel at Fannie Mae. Standard Fannie Mae. Base Pay (Salary or Hourly) Income. Other options include Individual Retirement Accounts (IRAs), 401. Launch Ask Poli for Sellers . Annuity Income Watch Me! Annuity & Retirement Distribution Answer Me! Foundations On-Demand NOT YOUR ORDINARY INCOME 13 Notes: Watch Me! Annuity & Retirement DistributionConclusion. 1, Employment and Other Sources of Income. Certain components of the loan file – income, employment, and assets – are eligible for validation by DU using electronic verification reports obtained from vendors. For all mortgage loans (existing and new construction), the credit documents must be no more than four months old on the note date. Note: Changes since the last update are marked either NEW or UPDATED. 50% Loan Term 180. The HomeReady® mortgage includes innovative income flexibilities that can help your customers qualify for an affordable mortgage with a down payment as low as 3%. Examples of income of this type include income from hourly workers with fluctuating hours, or income that includes commissions. Funds needed to complete the. Mortgage qualification requirements for retirees: Assets. Income payments from deferred annuities are also taxed as income when received. Income Assessment. Fannie Mae Reports Net Income of $12. 1-09, Other. The IRS changed the 2019 tax returns to separate IRA distributions from pension and annuity income; therefore, these fields are now separated on the tax transcript data used by the DU validation service. current receipt of trust income with one month’s bank statement or other equivalent document. Income property, 75 percent. citizens. Fannie Mae may revoke these limited permissions by written notice to any or all Fannie Mae-approved users. 4 for additional information about income calculation requirements and guidance. You can calculate your DTI ratio by dividing your recurring minimum expenses by your total monthly income. The lender may use the Request for Verification of Employment (Form 1005) to document income for a salaried or commissioned borrower. The following table provides verification requirements for retirement, government annuity, and pension income. Fannie Mae Corporation pays an average of $7,537 in annual employee bonuses. Download PDF Guide (Published: November 01 2023) Search the Guide (For best result, pose your search like a question. monthly income from annuities, insurance policies, retirement funds, pensions, disability or death benefits, rental. While every effort has been made to ensure the reliability of the content in Ask Poli, Fannie Mae's Selling Guide and its updates, including Guide Announcements and Release Notes, are. Retirees often have significant assets, but limited income, so Fannie and Freddie have found ways to help retirees qualify based on their assets. Guide Resources. Guide Resources. 50% Loan Term 180. Examples of liquid financial assets that can be used for reserves include readily available funds in. The total qualifying income that results may not exceed the borrower's regular employment income. The servicer must determine the borrower's new modified mortgage loan terms in accordance with Determining the Fannie Mae Flex Modification Terms in D2-3. Fannie Mae, October 2. Weekly. an IRS 1099 form. Tax returns are required if the borrower. Investment-linked annuities are financial products that combine the features of insurance and investment. For more information, see B3-3. See B3-3. Visit our consumer alert web page for more information, and please report any such scams to us: 1-800-2FANNIE (1-800-232-6643) Option 4. There may be more coverage offerings. Fannie Mae Gift of Equity . Financing Concession . Study with Quizlet and memorize flashcards containing terms like Private mortgage insurance (PMI) is usually required on _____ loans with loan-to-value ratios greater than _____ percent. The Selling Guide has been updated to include changes to the following:. Retirement, Government Annuity, and Pension Income. Fannie Mae purchases or securitizes ATR Exempt Loans as long as such loans meet the other eligibility and underwriting requirements described in this Guide. S. Income property, 75 percent. Temporary leave income: $2,000 per month. The DU validation service offers lenders an opportunity to deliver loans with more certainty. Chapter B3-4: Asset Assessment. of this publication are granted to Fannie Mae-approved lenders, servicers, and other mortgage finance professionals, strictly for their own use in originating mortgages, selling mortgages to Fannie Mae, or servicing mortgages for Fannie Mae. , ET. Total verified liquid assets: $30,000. Lenders have difficulty using income from the growing number of gig economy workers* to. The DU validation service offers lenders an opportunity to deliver loans with more certainty. Hourly. and monthly income from annuities, insurance policies, retirement funds, pensions, disability or death benefits, rental income. . Requirement. The lender must obtain. Section 5303. The table below details the standard coverage requirements. 1-05, Secondary Employment Income (Second Job and Multiple Jobs) and Seasonal Income (12/15/2021). a. Guide Resources. Chapter B3-4: Asset Assessment. For example, if you receive $4,000 a month from fixed income sources and your debt and recurring payments equal $1,000, your DTI ratio is 25%. Insurance companies usually offer it to individuals eager to secure a steady cash flow after retirement. See B3-3. Assets used for the calculation of the monthly income stream must be owned individually by the borrower, or the co-owner of the assets must be a co-borrower of the mortgage loan. Launch Ask Poli for Sellers . 1-01, General Income Information), and use the averaged amount as part of the borrower’s qualifying income as long as the borrower provides current evidence that they own additional property or assets that can be sold if extra income is needed. a copy of signed federal income tax return, an IRS W-2 form, or. Income Assessment. We have a program that will take the sum of all liquid assets and divide the sum by 60 months. m. Note: The tax-exempt nature of some of the above payments should also be considered. Average Fannie Mae. See the applicable section below for information on Social Security income. equivalent to 25% of the non-taxable income to the borrower’s income. This topic contains general information for income, including: Stable and Predictable Income. The borrower has the right to select the insurer of their choice to provide property insurance for the subject property, provided that the insurance meets Fannie Mae's requirements. There are five main types of pension annuities: fixed, variable, indexed, immediate, and deferred. HomeReady and Home Possible are commendable initiatives by Fannie Mae and Freddie Mac, respectively, aiming to make homeownership more attainable for low to moderate-income borrowers. Weekly. For additional information, see B3-3. Chapter B3-2: Desktop Underwriter (DU) Chapter B3-3: Income Assessment. 7 $3. Fannie Mae purchases or securitizes mortgages that are secured by properties that have a business use in addition to their residential use, such as a property with space set aside for a day care facility, a beauty or barber shop, or a. All of the following loan parameters must be met in order for employment-related assets to be used as qualifying income: Loan Parameter. Available liquid reserves: $12,000. The lender must obtain. Assets used for the calculation of the monthly income stream must be owned individually by the borrower, or the co-owner of the assets must be a co-borrower of the. Refer to the applicable topics in Chapter B3-3, Income Assessment for additional information about specific tax return requirements. Lender must document 3–year continuance. Approximately 78% of our participants preferred to pay $100,000 for lifelong cash payments immediately at retirement than to pay. 3; and. The initial adjustment period in months must align with the initial fixed-rate period in years. When a component of the loan is validated by DU, the. Subpart B3: Underwriting Borrowers. 12 CFR 30, Appendix A, and 12 CFR 160. Beware of scamsHave less than 20% to put down on your home. the amount and duration of the borrower's “temporary leave income,” which may require multiple documents or sources depending on the type and duration of the leave period; and. You can also use the income from annuities, an investment vehicle that pays out regular monthly payments, when applying for a mortgage. Portfolio Manager, or Fannie Mae’s Single-Family Servicer Support Center at 1-800-2FANNIE (1-800-232-6643) with any questions regarding this Lender Letter. The below provides the verification requirements for long-term disability income. Retirement, Government Annuity, and Pension Income . If the part-time income is variable, refer to FAQ: How is variable income calculated? For information on part-time income that is seasonal, refer to FAQ: What are the requirements for seasonal income?Temporary leave income: $2,000 per month. Exceptions are specified in B3-2-10, Accuracy of DU Data, DU Tolerances, and Errors in the Credit Report . For additional information, see B3-3. The provisions should not be applied as a means to calculate a higher income amount for qualifying purposes, unless the income meets the definition of self-employment as stated in B3-3. Maximum LTV, CLTV, and HCLTV Ratio. ) Home / Underwriting Borrowers / Income. the amount and duration of the borrower's “temporary leave income,” which may require multiple documents or sources depending on the type and duration of the leave period; and. If the income is verified to be nontaxable, and the income and its tax-exempt status are likely to continue, the lender may develop an “adjusted gross income” for the borrower by adding an amount equivalent to 25% of the nontaxable income to the borrower’s income. The total qualifying income that results may not exceed the borrower's regular employment income. Continuity of Income. The payments from an ordinary annuity can be fixed or variable, and it has the potential to generate compound interest and. The borrower's monthly gross income is defined as the borrower's monthly income amount before any payroll deductions and includes the following items, as.