Royalty Payment Income

The following table provides verification requirements for royalty income.

	Verification of Income From Royalty Payments
	Obtain copies of the royalty contract, agreement, or statement confirming amount, frequency, and duration of the income; or borrower’s most recent signed federal income tax return, including the related IRS Form 1040, Schedule E.
	Confirm that the borrower has received royalty payments for at least 12 months and that the payments will continue for a minimum of three years after the date of the mortgage application.

Refer to the Variable Income section of General Income Information, for additional information.