Verification of Income

The underwriter may verify a self-employed borrower’s employment and income by obtaining from the borrower copies of their signed federal income tax returns (both individual returns and in some cases, business returns) that were filed with the IRS for the past one year (with all applicable schedules attached).

Alternatively, the underwriter may use IRS-issued transcripts of the borrower’s individual and business federal income tax returns that were filed with the IRS for the most recent one year—as long as the information provided is complete and legible and the transcripts include the information from all of the applicable schedules.

Business tax returns are not required.