Frequently Asked Questions. FHLB Des Moines

Transcription

1 Frequently Asked Questions FHLB Des Moines

2 Income Calculation Workbook FHLB DES MOINES 2

3 Income Documentation Type If income is documented with paystubs, use Paystub section. If income is documented with a VOE, use VOE section. If income is from self-employment, use Self-Employment section. If income is seasonal, use Seasonal section. For all other income, use Other Income section. FHLB DES MOINES 3

4 Household Summary Member- Participating Member Bank name. Enrollment Date- The loan application or application for assistance date. Borrower- Primary Homeowners Name. Household Size- Do Not Enter- this will auto populate. Address- Address of property location being purchased Enter the names of all people living in the household. Relationship to Head of Household is a drop down- select option that best correlates. Enter date of birth- age will auto populate. Income will auto populate once the workbook is completed. In this Example, John and Betsy are on title. John and Betsy will both sign this form. Betsy and Gary will each complete a Certificate of Zero Income. (Martha does not as she is under 18.) Once completed: 1. Print this tab 2. All person(s) on title will need to sign and date the document at the bottom 3. The Household Summary along with all applicable Certificates of Zero Income will get uploaded together on the Homeowner Selection screen during reservation. FHLB DES MOINES 4

5 Income documented with Paystubs Select dropdown: Paystubs Confirm hire date with employer or household member Select drop down for pay frequency 3 consecutive paystubs in chronological order Hours worked per pay period Pay rate (example: per hour) Total base pay + vacation, holiday, personal, sick, PTO for particular pay period All other income: tips, commissions, bonuses, shift differentials, premium pay, etc. Select dropdown for indicated pay Gross Wages will total all pay type(s) for each paystub Year to date column gets taken from most recent paystub. Categorize income same as individual paystubs. FHLB DES MOINES 5

6 Income documented by Verification of Employment (VOE) Hire Date can be found in box 9 on the VOE Verification should read VOE if using a VOE or Paystubs if you are using paystubs to determine income- this will not update automatically Verify in box 15 on VOE Verify in box 12A on VOE Pay Rate is can be verified in box 12A on VOE- select dropdown to best correlate Verify in box 12B on VOE Verify in box 12B on VOE: Separate boxes for each pay type Verify in box 12B as Total *This will total the entire column including base pay, OT, Commissions, and Bonus *Please note: Average Hours Per Week should not exceed 40. Verify in box 12B on VOE <Under past years>. If not employed previously with company, leave blank FHLB DES MOINES 6

7 Income documented by Federal Tax Returns (Self-Employment) Months self-employed- number of months self employed Prior Year 1- previous year Prior Year 2- second previous year Example: Sally owns her own business- she started this business in May Current Year is Prior Year 2- will be 7 as she only owned the business for 7 months in Prior Year 1- will be 12 as she owned the business for the entire year in The amounts entered can be found on line 12 of the Tax Return. (2 years are required regardless of the amount of time they have owned the business) Farm Income can be found on line 18 of the Tax Return- same method can be used as described above. * If borrower has more than one business, please contact our Down Payment Products team to assist in completing this portion FHLB DES MOINES 7

8 Seasonal Employment Enter number of weeks off per yearconfirmation of this can be found on the VOE Weeks Employed to Date- Weeks employed year to date in current calendar yearconfirmation of this should be on the VOE or confirmed with the employer. Select from dropdown if Unemployment is received by household member. (If household member received unemployment, the unemployment income amount will get entered into other income as well.) Average Hours per Week: Confirm number of hours worked per week in box 15 of the VOE. If number exceeds 40- please enter 40. If left blank, please enter 40. Base Wages + Overtime + Commissions, etc should combine to equal Gross Income *Please Note: Seasonal Employment will require a VOE from the employer FHLB DES MOINES 8

9 Other Income All other income sources can be utilized the same way. The Amount is the gross amount received in each payment. The Schedule is the number of times they receive this payment per year. *Other Income- can be edited for items not listed in the Income Source category. Specific comments will get entered into the green box to clarify type of income. Example: Sally receives $ (gross) per month from SSI. Amount: $ Schedule: 12 The Total column will auto populate once you hit enter. This will then carry over to the Household Summary. Example: Sally received a one time sign on bonus of $1500. The amount will be $1500 and the schedule will be 1 as she is only receiving this amount one time this year. Documentation from the employer stating this is a one time bonus can be added to the Supporting Income Documentation on the Household Summary screen. FHLB DES MOINES 9

10 Documents needed for other income (as applicable) Unemployment: Past two years years tax returns Social Security (SSI): Most recent benefit letter stating monthly gross amount received Supplemental SSI: Most recent benefit letter stating monthly gross amount received Pension/Retirement/Annuities: Most recent benefit letter stating monthly gross amount received Alimony/Child Support: Child support order, Divorce decree or Formal statement from recognized state or local agency administering support Rental Income: Copy of lease or appraisal to confirm gross monthly rent- Use 75% of gross amount FHLB DES MOINES 10