HB-1-3555

(03-09-16) SPECIAL PN 9-1

Revised (09-27-23) PN 592

CHAPTER 9: INCOME ANALYSIS

7 CFR 3555.152

9.1 INTRODUCTION

The lender is responsible to confirm applicants and households meet the eligibility 

criteria for the Single Family Housing Guaranteed Loan Program (SFHGLP). Lenders 

must calculate and document annual, adjusted annual, and repayment income. The 

guidance provided applies to all loans, including manually underwritten loans and loans 

that utilize the Agency’s automated underwriting system, GUS.

SECTION 1: ELIGIBILITY INCOME

9.2 OVERVIEW

The SFHGLP assists very-low, low, and moderate-income households. Therefore, the 

lender must certify that any household that requests a loan guarantee does not exceed the 

adjusted annual income threshold for the applicable state and county where the dwelling 

is located. Additional information on income limits can be found in Appendix 5 of this 

Handbook.

This section assists lenders in analyzing income types, completing income calculations 

(annual, adjusted annual, and repayment), and documenting the income with acceptable 

verifications. Documentation of income calculations are recorded on Attachment 9-B, 

Worksheet for Documenting Eligible Household and Repayment Income, FNMA Form

1008 or Freddie Mac Form 1077, Uniform Underwriting and Transmittal Summary, or an 

equivalent lender income worksheet. Attachment 9-C provides a case study to illustrate

how to properly complete the income worksheet. A public website is available to assist in 

the calculation of annual and adjusted annual income at: 

https://eligibility.sc.egov.usda.gov/eligibility/incomeEligibilityAction.do?pageAction=state.

9.3 ANNUAL INCOME [7 CFR 3555.152(b)]

Annual income includes all eligible income sources from all adult household 

members, not just parties to the loan note. The annual income for the household will be 

used to calculate the adjusted annual household income. The adjusted annual income 

determines if the household is eligible for a guaranteed loan.
HB-1-3555

Paragraph 9.3 Annual Income

9-2

A. Income that is Never Counted

7 CFR 3555.152(b)(5) lists income sources that are never included in the annual 

income calculation. Refer to Attachment 9-A to review income and asset types, guidance 

for annual and repayment purposes, and documentation options acceptable to verify the 

income or asset source.

B. Calculation of Annual Income

Annual income is calculated for the ensuing 12 months, based on income 

verifications, documentation, and household composition. Lenders must examine all 

evidence to ensure the calculation is supported.

In addition to 7 CFR 3555.152(b) and Attachment 9-A, lenders must consider the 

following to calculate annual income:

• Use the gross amount, before any payroll deductions, of base wages and salaries, 

overtime pay, commissions, fees, tips, bonuses, housing allowances, and other 

compensations for personal services of all adult members of the household, unless 

they meet the exclusion criteria of 7 CFR 3555.152(b)(5) and Attachment 9-A. 

Documented cost of living allowances or wage increases that will be effective on 

or before loan closing must be included in the annual income calculation.

• Include the first $480 of earned income from adult full-time students who are not 

an applicant, or a spouse of an applicant.

• Include the income of an applicant’s spouse, unless the spouse has been living 

apart from the applicant for at least three months (for reasons other than military 

or work assignment), or court proceedings for divorce or legal separation have 

been commenced. Evidence to support living apart for three months may include, 

but is not limited to, an apartment lease, bills, or bank statements in their name 

alone delivered to a different address, etc. This guidance applies to domestic 

partners, significant others, and fiancée’s that are currently living with the 

applicant as a household/family unit. This guidance does not apply to adult 

dependents age 18 and up.

• An adult household member that is currently unemployed but is seeking new 

employment must have their previous earnings included in annual income. The 

previous earnings are not required to be included when there is documented 

evidence to support they are not seeking to be reemployed, such as a tendered 

resignation, official termination from previous employer, or a signed statement

from the adult household member that they do not plan to pursue new employment.
HB-1-3555

Paragraph 9.3 Annual Income

(03-09-16) SPECIAL PN 9-3

Revised (09-27-23) PN 592

• Income verifications provided by applicants that do not currently support 

historical earnings with the same employer (e.g. less hours worked, less overtime, 

less bonus, declining self-employment income, etc.) must be carefully reviewed to 

determine appropriate calculations.

• Verified changes of income amounts or sources in the ensuing 12 months must be 

documented. Examples include, but are not limited to, pending retirement, 

resignation tendered, documented raise that will occur prior to loan closing, etc.

• Income sources that will not be received for the entire ensuing 12 months must 

continue to be included in annual income unless excluded under 7 CFR 

3555.152(b)(5). Examples include, but are not limited to, child support, alimony, 

maintenance, Social Security, etc. Annual income is the total of all income 

sources for a 12- month timeframe. Income calculations must state the income 

source, the number of months receipt remaining for the ensuing 12- month 

timeframe, and the total amount to be received.

Lenders are responsible for accurately calculating annual household income. The 

calculation should be logical based on the history of income and documentation provided. 

Training is available on the USDA LINC Training and Resource Library website, located 

at https://www.rd.usda.gov/resources/usda-linc-training-resource-library/lender-training.

Annual income calculations will typically vary from adjusted annual and repayment 

income.

C. Income of Temporarily Absent Household Members

A household member is defined as all persons routinely living in the dwelling as a 

principal residence, except for live in aides, foster children, and foster adults (7 CFR 

3555.10). If a member of the household that will make the dwelling their principal 

residence is temporarily absent, their income must be included.

D. Applicant Assets

Income earned from non-retirement assets may be required to be included in the 

annual income calculation, as applicable. Refer to paragraph 9.4 for guidance.
HB-1-3555

Paragraph 9.3 Annual Income

9-4

E. Verification Requirements

Lenders must verify income and asset documentation provided by applicants and 

other adult household members. Lenders will verify the income for each adult household 

member for the previous 2 years. The following guidance will assist:

• Written, oral, or electronic verifications, and documents provided or prepared by 

third-party sources are acceptable, unless otherwise specified. These verifications 

must be provided directly to the lender.

• Lenders may not accept verifications or documents transmitted by, or passed 

through, an interested third party such as builders, real estate professionals, or 

sellers.

• Facsimiles, photocopies, digital images, and computer-generated documents may 

be accepted in lieu of original forms, unless otherwise specified.

• The lender is responsible for the integrity and accuracy of the information in the 

mortgage underwriting file. Regardless of the type of documentation used to 

support the loan application, the documents must be legible and free of any 

alterations, erasures, “white-outs,” or similar indications that changes have been 

made.

• Verification documentation of household annual, adjusted annual, and repayment 

income will be retained in the lender’s permanent case file.

• Paystubs/earning statements must include adequate information to calculate 

income and include year-to-date earnings. The lender must utilize 

paystub(s)/earning statement(s) that are dated no earlier than 30 days prior to the 

initial loan application date.

• W-2 forms must include the most recent one or two years, as applicable. W-2’s 

must clearly identify the applicant and employer.

• Tax returns for self-employed borrowers must be copies of the original returns 

filed with the IRS and include all supporting schedules. Lenders may substitute 

IRS transcripts obtained directly from the IRS with all supporting schedules. The 

most recent tax return refers to the last return filed as determined by IRS 

schedule/deadlines. Lenders must continue to obtain the most recent two years of 

returns, as applicable. USDA requires all applicants to be current on their income 

tax filings.
HB-1-3555

Paragraph 9.3 Annual Income

(03-09-16) SPECIAL PN 9-5

Revised (09-27-23) PN 592

• Applicants with an approved IRS extension for the current tax year may continue

to be eligible if they are not delinquent on taxes owed, as determined by the IRS. 

Evidence of the extension and tax payment made, if applicable, must be retained 

in the lender’s permanent loan file. USDA does not require applicants to file a 

return for the current tax year if the IRS schedule/deadline for that tax year has 

not passed (i.e. prior to April 15th).

• Income and asset documents and verifications cannot be greater than 120 days old 

at time of loan closing. Divorce decrees, income tax returns, and other documents 

that do not expire will continue to have the most recent or filed copy accepted.

• Applicable income and asset documents greater than 120 days old at the time of loan 

closing must be updated or re-verified to support applicant/household eligibility.

For all loan types, lenders must verify the income for all applicants and adult 

household members (excluding eligible full- time students age 18 and above) through one 

of the following documentation methods. Refer to Attachment 9-A for documentation 

and verification options that are acceptable to support income types.

1. Full Income Documentation – Non-Self-Employed

• W-2 forms for the most recent two tax years, which may be electronically 

generated or provided in paper format, or IRS Wage and Income transcripts;

• Paycheck stubs or payroll earning statements that report the most recent four 

weeks of earnings; and

• Prior to loan closing, a Verbal Verification of Employment (VVOE) must be 

obtained for all applicants within 10 business days of loan closing. This 

VVOE will be retained in the lender’s permanent loan file. Adverse changes 

to the applicant’s employment may render the loan ineligible.

2. Alternative Income Documentation – Non-Self-Employed

• Written Verification of Employment (VOE): Electronically generated 

verifications from the employer or a verification service utilized by the 

employer, Form RD 1910-5, Request for Verification of Employment, or an 

equivalent HUD, VA, Fannie Mae, or Freddie Mac form may be utilized to 

verify the current year-to-date (YTD) and previous year’s employment 

earnings. This verification must confirm base income/wages, bonus, overtime, 

commissions, and other income sources earned, as applicable;
HB-1-3555

Paragraph 9.3 Annual Income

9-6

• Recent paycheck/earnings statement: Lenders must compare a recent paystub 

that includes YTD earnings and employment information to the VOE to 

confirm these two documents reasonably agree; and

• Prior to loan closing a VVOE must be obtained for all applicants within 10 

business days of the loan closing. This VVOE will be retained in the lender’s 

permanent loan file. Adverse changes to the applicant’s employment may 

render the loan ineligible.

3. Self-Employed Income Documentation

Applicants or household members are considered self-employed when they have a 

25 percent or greater ownership interest in a business. If the ownership interest is less 

than 25 percent, neither the “Business Owner” or “Self-Employed” options should be 

selected in GUS.

Federal Income Tax Returns for the business will be required when ownership is 

25 percent or greater. The lender must analyze the most recent two- year history of 

the business earnings. Sharp increases or decreases in self-employment income may 

require the lender to review additional documentation to support their calculation of 

annual, adjusted annual, and repayment income. Sharp increases or decreases are 

defined as a 20 percent or greater variance for income earnings from the previous 12 

months. The lender’s permanent file must contain the following, as applicable:

• Federal Income Tax Returns (filed and signed) for the most recent two 

consecutive years with all schedules, or IRS transcripts that include all 

applicable schedules;

• Federal Income Tax Returns for the business (filed and signed) for the most 

recent two consecutive years with all schedules, or IRS transcripts that include 

all applicable schedules, if required for the ownership interest/business type;

• Recent profit and loss statement (not required to be audited); and

• Confirmation the business is operational, obtained within 30 days of the loan 

closing. Documentation may include evidence of a website, additional internet 

documentation, licensing bureau certification, etc. Adverse changes to the 

business may render the applicants ineligible.

Lenders may utilize Fannie Mae Form 1084, Cash Flow Analysis, Fannie Mae 

Form 1088, Comparative Income Analysis, or a comparable self-employment
HB-1-3555

Paragraph 9.3 Annual Income

(03-09-16) SPECIAL PN 9-7

Revised (09-27-23) PN 592

evaluation form(s), and Attachment 9-E to assist in the calculation of selfemployment income.

A business (full time or part-time) that is closed may be removed from 

consideration for annual income when the applicants provide a letter of explanation 

and documentation to the lender which details: 1. When the business was closed; 2. 

Why the business was closed; 3. How the business was closed; and 4. Evidence, 

satisfactory to the lender, to support the closure of the business.

REMINDER: Refer to Attachment 9-A for documentation options and 

verification requirements of additional income and asset types that may apply to the 

household. If a specific income or asset type is not listed, refer to 7 CFR 3555.152. 

All income and asset types must be documented and verified. The lender must retain 

all documentation and calculations in their permanent loan file.

4. IRS Transcripts: Verification of Income

IRS transcripts are required for all required household members in addition 

to the documentation option selected by the lender. Lenders must require each 

adult household member, as applicable, to complete and sign IRS Form 4506-T, 

Request for Transcript of Tax Return, or IRS Form 4506-C, IVES Request for 

Transcript of Tax Return, for the previous two tax years at the time of submission to 

the Agency. The 4506-T/4506-C must be used to request full transcripts with all 

schedules.

Full time students age 18 and up that are not the applicant, co-applicant, or spouse 

of an applicant are not required to sign the 4506-T/4506-C or have transcripts 

provided.

Guaranteed loans cannot be made to a household that exceeds the applicable 

adjusted annual income limit. The transcripts provide a quality control measure to 

ensure all income and asset earnings reported to the IRS have been disclosed to the 

lender.

Lenders must obtain and review the transcripts prior to loan closing and retain 

them in their permanent loan file.

Previously unknown/undisclosed income or asset sources that are identified by the 

transcripts will require additional review by the lender and may render a loan file 

ineligible.
HB-1-3555

Paragraph 9.3 Annual Income

9-8

The lender is responsible for requesting tax transcripts in the early stages of the 

application process. When the lender is unable to obtain transcripts from the IRS for 

the applicants or required household members, they may document their 

correspondence to and from the IRS in the permanent loan file to support the 

omission. The loan file will be considered complete when the explanation is

documented. Loan closings will not be delayed due to obstacles in obtaining the tax 

transcripts when the tax returns were filed timely. However, a “failure to file” tax 

returns by the applicants, when legally required to do so and by the due date 

established by the IRS, is not an eligible explanation to forego obtaining tax 

transcripts. The lender remains responsible for obtaining transcripts, even if postclosing (when permitted).

9.4 CALCULATING INCOME FROM ASSETS [7 CFR 3555.152(d)]

Household members with cumulative net family assets (non-retirement) of $50,000 or 

greater, must have those assets reviewed for annual income purposes, as indicated in 7 

CFR 3555.152(d). Lenders must review asset information provided by applicants and 

household members at the time of loan application. Net family assets with actual earnings 

will use the stated rate of interest to calculate annual income. Net family assets that do

not earn interest will use a current passbook savings rate (verified through the lender’s 

personal banking rates, online website, etc.) to calculate annual income.

If the applicants have ownership in a business, or are self-employed, the lender 

should closely review the asset accounts to verify assets are not transferred between a 

personal account and a business account and vice versa. These accounts should function 

as two separate financial tools, one for personal transactions and one for business 

transactions. In the event the assets from the business account and personal account are 

co-mingled, the co-mingled assets would need to be included in the calculation of net 

family assets.

Refer to the Asset section in Attachment 9-A for individual asset types and options for 

documentation/verification.

9.5 ADJUSTED ANNUAL INCOME [7 CFR 3555.152(c)]

The adjusted annual income calculation will determine if the household is eligible for 

the guaranteed loan program. Adjusted annual income is calculated by using the annual 

income calculation and subtracting any of the eligible deductions in 7 CFR 3555.152(c) 

for which the household may qualify. Attachment 9-C provides an example of using 

deductions.
HB-1-3555

Paragraph 9.5 Adjusted Annual Income

(03-09-16) SPECIAL PN 9-9

Revised (09-27-23) PN 592

Refer to Attachment 9-A for information and documentation options to support these 

eligible deductions:

• Dependents

• Child Care Expenses

• Elderly Household

• Care of Household Members with Disabilities

• Medical Expenses

9.6 AGENCY REVIEW OF HOUSEHOLD INCOME

The Agency will recalculate the lender’s determination of adjusted annual income, as 

a quality control step, when the lender’s calculation is within 10 percent of the applicable 

published income limit. The Agency review is only required for manually underwritten 

loans, defined as application types that are not supported by GUS and applications 

submitted to GUS that have received an underwriting recommendation of Refer or Refer 

with Caution.

If the Agency’s calculation exceeds the adjusted annual income threshold, the Agency 

will contact the approved lender to review the results and determine the appropriate 

calculation. This review will ensure adjusted annual household income calculations are 

correctly computed and include all applicable income. The Agency will complete 

Attachment 9-F, Worksheet for Documenting Eligible Household and Repayment Income, 

to record their calculation, which will then be uploaded to the Electronic Customer File 

(ECF).

SECTION 2: REPAYMENT INCOME [7 CFR 3555.152(a)]

9.7 OVERVIEW

Repayment income will determine if applicants have sufficient income to repay the

mortgage in addition to recurring debts. Repayment income calculations often differ from 

the calculation of annual and adjusted annual income.
HB-1-3555

Paragraph 9.7 Overview

9-10

 

Repayment income is the stable and dependable income of the applicants who will be 

parties to the note. Co-signers and non-occupant co-borrowers are not permitted for a 

guaranteed loan transaction.

9.8 STABLE AND DEPENDABLE INCOME [7 CFR 3555.152(a)]

7 CFR 3555.152(a) and Attachment 9-A assist lenders in reviewing income types.

The following guidance also assists lenders to consider repayment income sources:

• The income source must be documented.

• There must be evidence to support the historical receipt of earnings.

• Establish the likelihood of its continuance for at least 3 years into the mortgage.

• Analyze any gaps in employment to make a final determination of stable and 

dependable income. The Agency does not impose specific criteria regarding 

when a gap in employment is acceptable. It is the approved lender’s 

responsibility to analyze the complete employment history to determine stable and 

dependable income.

• Caution should be utilized for applicants that have documented declining wages or 

earnings. Lenders must ensure repayment income is not inflated/overstated.

• Caution should be utilized for applicants that have a documented sharp increase in 

earnings. A sharp increase in earnings is defined as a 20 percent or greater 

variance in income from the previous 12 months. Lenders must determine if an 

increase is supported and logical. Examples include, but are not limited to, a 

promotion with the current employer, documented pay raise, income trend 

analysis for overtime, bonus, commission, seasonal employees, etc.

• Caution should be utilized for applicants that have a documented decrease in 

earnings. A documented decrease in earnings is defined as a 20 percent or greater 

variance in income from the previous 12 months. Lenders must determine if the 

decrease has/will continue or if there is evidence to support the earnings have 

stabilized. Examples include, but are not limited to, loss of job but new 

employment secured with lower wages, new profession/line of work, loss of

contract/clients, economic cycle impact such as real estate, finance/lending, 

manufacturing, construction, etc.

• Lenders may gross up income that is not subject to Federal taxes 25 percent.
HB-1-3555

Paragraph 9.8 Stable and Dependable Income

(03-09-16) SPECIAL PN 9-11

Revised (09-27-23) PN 592

• Any loss incurred by a self-employed business (full time or part-time) that is 

closed may be removed from consideration when the applicants provide a letter of 

explanation and documentation to the lender which details: 1. When the business 

was closed; 2. Why the business was closed; 3. How the business was closed; and

4. Evidence, satisfactory to the lender, to support the closure of the business.

REMINDER: Approved lenders are responsible for their underwriting decisions, 

which includes the determination of stable and dependable income. Loans that default 

within 60 months of the date the Loan Note Guarantee is issued may result in 

indemnification from the approved lender to USDA due to unauthorized underwriting per 

7 CFR 3555, HB-1-3555, and additional published USDA guidance.

9.9 AGENCY REVIEW OF REPAYMENT INCOME

The Agency will recalculate the lender’s determination of repayment income, as a 

quality control step, when the repayment ratios are within 10 percent of the published 

debt ratio threshold of 7 CFR 3555.151(h). Repayment ratios greater than 26 percent for 

principal, interest, taxes, and insurance (PITI) and/or greater than 37 percent for total debt 

(TD) require Agency recalculation. The Agency review is only required for manually 

underwritten loans, defined as application types that are not supported by GUS and 

applications submitted to GUS that have received an underwriting recommendation of 

Refer or Refer with Caution.

If the Agency’s calculation does not agree with the repayment income calculation of 

the lender, the Agency will contact the approved lender to review the results and 

determine the appropriate calculation. This action will strengthen the oversight 

procedures to verify compliance with regulatory requirements. The Agency will complete 

Attachment 9-F, Worksheet for Documenting Eligible Household and Repayment Income, 

to record their calculation, which will then be uploaded to the Electronic Customer File 

(ECF).

9.10 OPTIONAL DOCUMENTATION OF INCOME FORMS

Attachment 9-G of this Chapter provides optional verification forms for the lender’s 

use in verifying non-employed income or adjusted annual income deductions as follows:

• Verification of Pensions and Annuities

• Verification of Student Income and Expenses
HB-1-3555

Paragraph 9.10 Optional Documentation of Income Forms

9-12

• Verification of Medical Expenses

• Verification of Social Security Benefits

• Verification of Public Assistance

• Verification of Child/Dependent Care

• Verification of Unemployment Benefits

• Verification of Business Expenses

• Verification of Support Payments

Also available is an optional form to record an oral verification of employment.

• Record of Oral Verification of Employment

9.11 EDUCATION

The Agency will allow time spent in school towards the required employment history 

for repayment income This includes college, technical school, and career-based 

certificates in high school (e.g. health and public safety career tracks). A standard high 

school diploma without an accompanying certificate does not meet the time requirements.
HB-1-3555

Attachment 9-A

Page 1 of 30

(03-09-16) SPECIAL PN

Revised (09-27-23) PN 592

Income and Documentation Matrix

Income guidance: 7 CFR 3555, Sections 3555.152(a) and (b)

This matrix cannot cover every income/asset type, employment scenario, etc. USDA requires approved lenders 

to use sound judgment to make an accurate and dependable analysis of income per 7 CFR 3555.152. Exclusions 

may apply under 7 CFR 3555.152(b)(5) and Attachment 9-D.

Considerations for Income Calculations

• Annual and adjusted annual income calculations must include all eligible income sources from all adult 

household members, not just parties to the loan note.

• Annual income is calculated for the ensuing 12 months, based on income verifications, documentation, and 

household composition.

• Include only the first $480 of earned income from adult full-time students who are not the applicants, or 

a spouse of an applicants in annual and adjusted annual income.

• Income from assets that meet the criteria of Section 9.4 must be included in annual and adjusted annual 

income.

• Repayment income calculations include the income sources of the applicants who will be parties to the note 

that meet the minimum required history identified in this matrix and have been determined to be stable and 

dependable income by the approved lender.

• Income used in repayment income calculations must be confirmed to continue a minimum of three years into 

the mortgage.

• If the income is tax exempt, it may be grossed up 25 percent for repayment income.

• “Documentation Source Options” lists eligible documentation. Every item listed is not required unless 

otherwise stated. Lenders must obtain and maintain documentation in the loan file supporting the lender’s

income calculations.

Income Type Annual Income Repayment Income

Adoption Assistance 

or Subsidy

If the income will be received in 

the ensuing 12 months, include the 

first $480 of adoption income or 

subsidy assistance for each

grantee.

Required History: None, the income 

must be received at the time of 

submission to the Agency.

Lenders must document:

o The applicants are currently

receiving the income; and

o The amount of the income received 

each month.

Benefits that do not include expiration 

dates on the documentation will be 

presumed to continue.

Documentation Source Options:

• Benefit/Award letter to document the amount and duration of payments.

• Online payment schedule from the Agency, bank statements, etc.

• Federal income tax returns or IRS tax transcripts with all schedules.
HB-1-3555

Attachment 9-A 

Page 2 of 30

Income Type Annual Income Repayment Income

Automobile Allowance Include amounts documented on 

the pay statements as taxable gross 

earnings that will be received in 

the ensuing 12 months.

Required History: Two years

Continuance: Income will be presumed 

to continue unless there is documented 

evidence the income will cease.

The full amount of the expense allowance 

may be included.

Refer to Chapter 11 for additional 

guidance when there is a monthly debt 

associated with the income (such as a car 

payment).

Documentation Source Options:

• Paystub(s)/Earning statement(s).

• Contract/agreement from employer to state terms and duration of payments.

• Federal income tax returns or IRS tax transcripts with all schedules.

Base Wages 

(Hourly or Salary)

Include amounts received before 

deductions for payroll taxes, 

insurance, etc. Include amounts 

that will be received in the ensuing 

12 months. Exclusions may apply 

under 7 CFR 3555.152(b)(5).

Full time students age 18 and above 

that are not applicants, coapplicants, or a spouse of an 

applicant will only have $480 of 

their earnings included in the 

annual income calculation. These 

household members are not

required to present income 

documentation.

Required History: One year

Income must be received at the time of 

submission to the Agency.

The one year of required history may be 

met through a combination of employers, 

education, or military service. This 

history is not required to be with the same 

or current employer. Applicants that were 

on leave with their employer due to 

maternity/paternity leave, medical leave, 

relocation, etc. remain employed.

Underwriters may use discretion for 

applicants returning to the workforce after 

leaving a previous job to care for a 

child/family member, complete education, 

etc. for an extended time of one year or 

greater.

Documentation Source Options:

• Paystub(s)/Earning statement(s).

• W-2’s.

• Written Verification of Employment (VOE) or electronic verifications.

• Federal income tax returns or IRS tax transcripts with all schedules.

• Section 9.3E provides additional information on employment verification options.
HB-1-3555

Attachment 9-A

Page 3 of 30

(03-09-16) SPECIAL PN

Revised (09-27-23) PN 592

Income Type Annual Income Repayment Income

Boarder Income

Guaranteed loans are for the 

purchase of a primary residence. 

Boarder income refers to rental 

income received from an 

individual renting space inside 

the dwelling, thus making the 

property income producing. The 

financing of income producing

property is an ineligible loan 

purpose for the SFHGLP.

Ineligible Ineligible

Bonus Include amounts that will be 

received in the ensuing 12 months 

based on employment verifications. 

Exclusions may apply under 7 CFR 

3555.152(b)(5).

Required History: One year in the same, 

or similar, line of work.

Underwriters must analyze bonus income 

for the current pay period and YTD 

earnings. Significant variances (increase or 

decrease) of 20 percent or greater in 

income from the previous 12 months must 

be analyzed and documented (e.g. paid 

once annually, paid monthly, etc.) before 

considering the income stable and 

dependable.

Continuance: Income will be presumed

to continue unless there is documented 

evidence the income will cease.

Documentation Source Options:

• Paystub(s)/Earnings statement(s).

• W-2’s.

• Written VOE or electronic verifications.

• Federal income tax returns or IRS tax transcripts with all schedules.

• Section 9.3E provides additional information on employment verification options.

Capital Gains Include amounts that will be 

received in the ensuing 12 months. 

Exclusions may apply under 7 

CFR 3555.152(b)(5).

Required History: Two years

Lenders must analyze the previous two 

years of capital gains income. An average 

of the previous two years may be logical, 

or if the current year was 20 percent less 

than the previous year, the lesser must be 

utilized.

Required Documentation:

• Federal income tax returns or IRS transcripts with all schedules.

• Evidence of additional property or assets retained by the applicants through title, bank statements, etc.
HB-1-3555

Attachment 9-A 

Page 4 of 30

Income Type Annual Income Repayment Income

Child Support Include amounts that will be 

received in the ensuing 12 months. 

Exclusions may apply under 7 

CFR 3555.152(b)(5).

Legally enforceable payments that 

have not been received may be 

excluded when payments are not 

received for an extended time and a 

reasonable effort has been made to 

collect them through the official 

entity responsible for enforcing 

such payments.

Court Ordered Payments:

Required History: Six months

Child support that meets the minimum 

history, but the payment amounts are not 

consistent, must use an average consistent 

with the payor’s current ability/willingness 

to pay.

Voluntary Payment Agreements:

Required History: One year

Child support that meets the minimum 

history, but the payment amounts are 

not consistent, must use an average 

consistent with the payor’s current 

ability/willingness to pay.

Documentation Source Options:

• Final divorce decree, legal separation agreement, or court order (front and pertinent pages) to document the 

amount and timeframe of the obligation.

• Evidence of timely receipt/consistent amount for required history: bank statements, canceled checks, deposit

slips, tax returns, etc.

Commission Include amounts that will be 

received in the ensuing 12 months. 

Exclusions may apply under 7 

CFR 3555.152(b)(5).

Required History: One year in the same, 

or similar, line of work.

Underwriters must analyze commission 

for the current pay period and YTD 

earnings. Significant variances (increase 

or decrease) of 20 percent or greater in 

income from the previous 12 months must 

be analyzed and documented (e.g. 

variances due to seasonal/holiday, etc.) 

before considering the income stable and 

dependable.

Continuance: Income will be presumed

to continue unless there is documented 

evidence the income will cease.

Documentation Source Options:

• Paystub(s)/Earning statement(s).

• W-2’s.

• Written VOE or electronic verifications.

• Federal income tax returns or IRS tax transcripts with all schedules.

• Section 9.3E provides additional information on employment verification options.
HB-1-3555

Attachment 9-A

Page 5 of 30

(03-09-16) SPECIAL PN

Revised (09-27-23) PN 592

Income Type Annual Income Repayment Income

Contract / Employment Offer Include amounts that will be 

received in the ensuing 12 months 

based on employment verifications.

Required History: One year

The one year of required history may be 

met through a combination of employers, 

education, or military service. This 

history is not required to be with the 

same or current employer.

Applicants moving to a new employer 

(e.g. school district, same profession,

etc.) with a contract to begin employment 

within 60 days of loan closing may be 

eligible if the underwriter determines the 

applicants have reserves available post

loan closing to cover all monthly liability 

payments and the new mortgage 

obligation until employment begins.

Documentation Source Options:

• Copy of signed employment contract/offer.

• Paystub(s)/Earning statement(s) of current/former employer to confirm employment/income history.

• W-2’s.

• Written Verification of Employment (VOE) or electronic verifications.

• Federal income tax returns or IRS tax transcripts with all schedules.

• Section 9.3E provides additional information on employment verification options.

Depreciation/Depletion The amount(s) of straight-line 

depreciation and/or depletion 

documented on acceptable IRS 

forms may be deducted.

Required History: Two years

Continuance: These amounts will be 

presumed to continue unless there is 

documented evidence they will cease.

The amount(s) of straight-line 

depreciation and/or depletion may be

added back to repayment income.

Required Documentation:

• Federal income tax returns or IRS tax transcripts with all schedules.
HB-1-3555

Attachment 9-A 

Page 6 of 30

Income Type Annual Income Repayment Income

Disability Income – Long Term

This section does not refer to 

disability income received from 

the Social Security 

Administration.

Include amounts that will be 

received in the ensuing 12 months. 

Exclusions may apply under 7 

CFR 3555.152(b)(5).

Required History: None, the income 

must be received at the time of 

submission to the Agency.

Lenders must document:

o The applicants are currently

receiving the income;

o The amount of the income received 

each month; and

o Determine if there is a contract 

termination or modification date.

Documentation Source Options:

• Verification from the disability policy or benefits provider to document the applicant’s eligibility for 

benefits, amount and frequency of payments, and termination/modification date.

• Federal income tax returns or IRS transcripts with all schedules.

Dividends Include amounts that will be 

received in the ensuing 12 months. 

Exclusions may apply under 7 

CFR 3555.152(b)(5).

Required History: Two years

Required Documentation:

• Account statements to support amount of income utilized for repayment purposes, including the balance, rate 

of interest, and payment amounts/continuance.

• Federal income tax returns or IRS tax transcripts with all schedules.

Earned Income Tax Credit Do not include Do not include

Employee Fringe Benefits Include amounts documented on the 

pay statements as taxable gross 

earnings that will be received in the 

ensuing 12 months. Exclusions

may apply under 7 CFR 

3555.152(b)(5).

Required History: One year

Employer-provided fringe benefit 

packages documented on earning 

statements as taxable income may be 

included.

Documentation Source Options:

• Paystub(s)/Earning statement(s).

• Contract/agreement from employer to state terms and duration of payments.

• Written VOE or electronic verifications.

• Federal income tax returns or IRS tax transcripts with all schedules.

• Section 9.3E provides additional information on employment verification options.
HB-1-3555

Attachment 9-A

Page 7 of 30

(03-09-16) SPECIAL PN

Revised (09-27-23) PN 592

Income Type Annual Income Repayment Income

Employment Related Account

This income source may be a 

non-self-employed severance 

package. Lump sum retirement 

packages should refer to 

Retirement Income. All 

payments must be deposited to 

a verified asset account with 

acceptable documentation of 

receipt.

Include amounts that will be 

received in the ensuing 12 

months. Exclusions may apply 

under 7 CFR 3555.152(b)(5).

Required History: None, the income 

must be received at the time of submission 

to the Agency.

Lenders must document:

o The applicants are currently

receiving the income;

o The amount of the income received 

each month; and

o Determine if there is a contract 

termination or modification date.

Required Documentation:

• Contract/agreement from employer to state terms and duration of payments.

• Benefit/Award verification letter, IRS 1099, evidence of current receipt, bank statements, etc.

• Federal income tax returns or IRS transcripts with all schedules.

Expense Allowance Include amounts documented on the 

pay statements as taxable gross 

earnings that will be received in the 

ensuing 12 months. Exclusions

may apply under 7 CFR 

3555.152(b)(5).

Required History: Two years

Continuance: Income will be presumed 

to continue unless there is documented 

evidence the income will cease.

The full amount of the expense allowance 

may be included.

Refer to Chapter 11 for additional 

guidance when there is a monthly debt 

associated with the income.

Documentation Source Options:

• Paystub(s)/Earning statement(s).

• Contract/agreement from employer to state terms and duration of payments.

• Federal income tax returns or IRS tax transcripts with all schedules.

Foreign Income Include all wages, salaries, and 

additional income types that will be 

received in the ensuing 12 months. 

Exclusions may apply under 7 CFR 

3555.152(b)(5).

Required History: One year (Refer to 

Base Wages)

Continuance: Income will be presumed

to continue unless there is documented 

evidence the income will cease.

Documentation Source Options:

• Paystub(s)/Earning statement(s), translated into English if applicable.

• Written VOE or electronic verifications.

• Federal income tax returns or IRS tax transcripts with all schedules.

• Section 9.3E provides additional information on employment verification options.

Foster child or adult income Do not include Do not include
HB-1-3555

Attachment 9-A 

Page 8 of 30

Income Type Annual Income Repayment Income

GI Bill

This income source is paid 

directly to veterans and/or their 

dependents attending college or 

university for the purpose of

covering tuition and related 

expenses.

Do not include Do not include

Government Benefits Include amounts that will be 

received in the ensuing 12 months.

Exclusions may apply under 7 

CFR 3555.152(b)(5) and

Attachment 9-C.

Required History: None, the income must 

be received at the time of submission to

the Agency.

Lenders must document:

o The applicants are currently

receiving the income; and

o The amount of the income received 

each month.

Continuance: Benefits that do not include 

expiration dates on the documentation will 

be presumed to continue.

Required Documentation:

• Benefit/Award documentation to support payment amounts and duration.

Guardianship/Conservatorship 

Income

This guidance does not apply to 

income earned from foster care.

Include amounts that will be 

received in the ensuing 12 months.

Exclusions may apply under 7 

CFR 3555.152(b)(5).

Required History: None, the income must 

be received at the time of submission to

the Agency.

Lenders must document:

o The applicants are currently

receiving the income; and

o The amount of the income received 

each month.

Continuance: Benefits that do not include 

expiration dates on the documentation will 

be presumed to continue.

Documentation Source Options:

• Documentation to support payment amounts and duration, such as a court order, legal documents, or other 

supplemental information.

• Online payment schedule from the Agency, bank statements, etc.

• Federal income tax returns or IRS tax transcripts with all schedules.
HB-1-3555

Attachment 9-A

Page 9 of 30

(03-09-16) SPECIAL PN

Revised (09-27-23) PN 592

Income Type Annual Income Repayment Income

Housing or Parsonage 

Allowance

Include the amounts that will be 

received in the ensuing 12 months. 

Exclusions may apply under 7 

CFR 3555.152(b)(5).

Required History: One year

The full amount of the allowance may 

be included. Do not offset the 

mortgage payment with the amount of 

the allowance.

Continuance: Income will be presumed 

to continue unless there is documented 

evidence the income will cease.

Documentation Source Options:

• Paystub(s)/Earning statement(s).

• Contract/Agreement from employer to state the terms and duration of payments.

• Federal income tax returns or IRS tax transcripts with all schedules.

Individual Retirement Account 

(IRA) Distributions

Include amounts that will be 

received in the ensuing 12 months. 

Lump sum withdrawals or sporadic 

payments may be excluded under 7

CFR 3555.152(b)(5).

Required History: None, the income must 

be received at the time of submission to

the Agency.

Lenders must document:

o The applicants are currently

receiving the income; and

o The amount of income received 

each month.

Continuance: Income will be presumed 

to continue unless there is documented 

evidence the income will cease.

Documentation Source Options:

• IRA documents, IRS 1099, evidence of current receipt, bank statements, etc.

• Federal income tax returns or IRS tax transcripts with all schedules.

Interest Include income that will be 

received in the ensuing 12 months.

Net family assets that do not exceed 

a cumulative total of $50,000 are 

not required to be considered in the

annual income calculation.

Required History: Two years

Required Documentation:

• Account statements to support the balance, rate of interest, and payment amounts/continuance.

• Federal income tax returns or IRS tax transcripts with all schedules.

Live in Aides Do not include Do not include
HB-1-3555

Attachment 9-A 

Page 10 of 30

Income Type Annual Income Repayment Income

Medical Reimbursement Do not include Do not include

Mileage Include amounts documented on the 

pay statements as taxable gross 

earnings that will be received in the 

ensuing 12 months.

Required History: One year

Continuance: Income will be presumed 

to continue unless there is documented 

evidence the income will cease.

Mileage documented on earning 

statements as taxable income may be 

included.

When a mileage deduction is claimed on 

the income tax return, the calculated 

amount may be added to repayment 

income. Lenders must follow current IRS 

guidance to calculate this amount.

Documentation Source Options:

• Paystub(s)/Earning statement(s).

• Federal income tax returns or IRS tax transcripts with all schedules.

Military Include all wages and pay 

allowances that will be received in 

the ensuing 12 months.

Hazardous duty pay and additional 

income sources may be excluded 

under 7 CFR 3555.152(b)(5).

Required History: One year 

College/Technical School attendance may 

be substituted.

Continuance: Income will be presumed 

to continue unless there is documented 

evidence the income will cease.

In addition to base pay, military personnel 

may be entitled to additional forms of

pay. Income sources such as basic 

allowance for housing and subsistence 

(BAH/BAS), clothing allowances, flight 

or hazard pay, rations, and proficiency

pay may be used for repayment income 

provided it is verified to continue.

Additional consideration for the taxexempt nature of these payments may be 

applied.

Documentation Source Options:

• Military Earnings and Leave Statement(s).

• W-2’s.

• Written VOE or electronic verifications.

• Federal income tax returns or IRS tax transcripts with all schedules.

• Section 9.3E provides additional information on employment verification options.
HB-1-3555

Attachment 9-A

Page 11 of 30

(03-09-16) SPECIAL PN

Revised (09-27-23) PN 592

Income Type Annual Income Repayment Income

Mortgage Credit Certificate Do not include Required History: None

The monthly benefit amount may be 

included in repayment income.

Self-employed applicants are not eligible 

for MCC.

Required Documentation:

• Copy of the approved MCC award letter/contract with the rate of credit documented.

GUS Instructions:

• In the “Borrower Information” page under “Income from Other Sources,” use the dropdown button in the 

“Income Source” field and select “Mortgage Credit Certificate.” Tab to the “Monthly Income” field and enter 

the amount.

Mortgage Differential Payment Include amounts that will be 

received in the ensuing 12 months. 

Exclusions may apply under 7 

CFR 3555.152(b)(5).

Required History: One year

Include the differential payment in 

repayment income. Do not offset the 

mortgage payment with the amount of the 

allowance.

Continuance: Income will be presumed

to continue unless there is documented 

evidence the income will cease.

Required Documentation:

• Verification from the employer to confirm the subsidy amount and duration of payments.

Notes Receivable Include amounts that will be 

received in the ensuing 12 months. 

Exclusions may apply under 7 

CFR 3555.152(b)(5).

Required History: Two years

.

Required Documentation:

• Copy of note to establish the amount and length of time of payment.

• Federal income tax returns or IRS transcripts with all schedules, for proof of receipt of income.
HB-1-3555

Attachment 9-A 

Page 12 of 30

Income Type Annual Income Repayment Income

Overtime Include amounts that will be 

received in the ensuing 12 months 

based on employment 

verifications. Exclusions may 

apply under 7 CFR 

3555.152(b)(5).

Required History: One year in the same, 

or similar, line of work.

Continuance: Income will be presumed 

to continue unless there is documented 

evidence the income will cease.

Underwriters must analyze overtime for the 

current pay period, and YTD earnings.

Significant variances (increase or decrease) 

of 20 percent or greater in income from the 

previous 12 months must be analyzed and 

documented (e.g. variances due to 

seasonal/holiday, etc.) before considering

the income stable and dependable.

Documentation Source Options:

• Paystub(s)/Earning statement(s).

• W-2’s.

• Written VOE or electronic verifications.

• Federal income tax returns or IRS tax transcripts with all schedules.

• Section 9.3E provides additional information on employment verification options.

Part-time Employment Include amounts that will be 

received in the ensuing 12 months. 

Exclusions may apply under 7 

CFR 3555.152(b)(5).

Evidence of resignation, 

termination, retirement, or 

relocation from these positions may 

result in the exclusion of this 

income type.

Required History: One year

Continuance: Income will be presumed 

to continue unless there is documented 

evidence the income will cease.

Documentation Source Options:

• Paystub(s)/Earning statement(s).

• W-2’s.

• Written VOE or electronic verifications.

• Federal income tax returns or IRS tax transcripts with all schedules.

• Section 9.3E provides additional information on employment verification options.
HB-1-3555

Attachment 9-A

Page 13 of 30

(03-09-16) SPECIAL PN

Revised (09-27-23) PN 592

Income Type Annual Income Repayment Income

Pensions Include amounts that will be 

received in the ensuing 12 months.

Lump sum withdrawals or sporadic 

payments may be excluded under 7 

CFR 3555.152(b)(5).

Required History: None, the income 

must be received at the time of submission 

to the Agency.

Lenders must document:

o The applicants are currently

receiving the income; and

o The amount of the income received 

each month.

Continuance: Income will be presumed to 

continue unless there is documented 

evidence the income will cease.

Documentation Source Options:

• Benefit/Award verification letter, retirement documents, IRS 1099, evidence of current receipt, bank 

statements, etc.

• Federal income tax returns or IRS tax transcripts with all schedules.

Per Diem Include amounts documented on 

the pay statements as taxable gross 

earnings that will be received in the 

ensuing 12 months. Exclusions 

may apply under 7 CFR 

3555.152(b)(5).

Required History: One year

Taxable income may be included.

Continuance: Income will be presumed to 

continue unless there is documented 

evidence the income will cease.

Documentation Source Options:

• Paystub(s)/Earning statement(s).

• Contract/agreement from employer to state terms and duration of payments.

• Federal income tax returns or IRS tax transcripts with all schedules.
HB-1-3555

Attachment 9-A 

Page 14 of 30

Income Type Annual Income Repayment Income

Rental Income

A retained dwelling must meet 

the requirements of 7 CFR 

3555.151(e).

Include positive net rental income 

that will be received in the ensuing 

12 months.

Negative net rental income is 

counted as zero in the annual 

income calculation.

Required History: Two years

Rents Received 24 Months or More

Positive net rental income received 

may be included in the repayment 

income.

Negative net rental income is treated as 

a recurring liability in the debt ratios.

Refer to Chapter 11 for additional 

guidance when there is a mortgage 

liability associated with the rental 

income.

Rents Received Less than 24 Months

No rental income may be included for 

repayment purposes.

Negative net rental income is treated as a 

recurring liability in the debt ratios.

Refer to Chapter 11 for additional 

guidance when there is a mortgage 

liability associated with the rental

income.

Required Documentation:

• Federal income tax returns with all schedules, specifically Schedule E; or

• IRS transcripts with all schedules, confirm Schedule E is completed.

• Evidence of cash/check deposits, money order receipts, electronic payment receipt, etc. to document rents 

received for last 30 days.

• Signed lease of current occupants.

GUS Instructions:

• Complete the applicable fields in the “Real Estate” page. Include the corresponding mortgage debt 

associated with the property, if applicable.

• Unless manually overwritten, GUS auto-calculates net rental income by employing a 25%

vacancy factor. GUS uses 75% of the lender entered amount for monthly rental income and 

subtracts the lender entered amounts for monthly mortgage payment(s), insurance, taxes, 

association dues, etc.

Restricted Stock Units (RSU) Include amounts listed as taxable 

income on the pay statements as 

gross earnings that will continue to 

be received in the ensuing 12 

months. Exclusions may apply

under 7 CFR 3555.152(b)(5).

Required History: Two years

Required Documentation:

• RSU account statements or award letters.

• Paystubs, VOE’s, or other documentation from the employer to support previous and future payments.
HB-1-3555

Attachment 9-A

Page 15 of 30

(03-09-16) SPECIAL PN

Revised (09-27-23) PN 592

Income Type Annual Income Repayment Income

Retirement Include amounts that will be 

received in the ensuing 12 months.

Lump sum withdrawals or sporadic 

payments may be excluded under 7 

CFR 3555.152(b)(5).

Required History: None, the income 

must be received at the time of submission 

to the Agency.

Lenders must document:

o The applicants are currently

receiving the income; and

o The amount of the income received 

each month.

Continuance: Income will be presumed 

to continue unless there is

documented evidence the income will

cease.

Documentation Source Options:

• Benefit/Award verification letter, retirement documents, IRS 1099, evidence of current receipt, bank 

statements, etc.

• Federal income tax returns or IRS tax transcripts with all schedules.

Royalty Payments Include amounts that will be 

received in the ensuing 12 months. 

Exclusions may apply under 7 

CFR 3555.152(b)(5).

Required History: Two years

Lenders must confirm the amount, 

frequency, and duration of these payments.

Required Documentation:

• Royalty contract or agreement.

• Federal income tax returns or IRS transcripts including all schedules.

Schedule K-1

This may be utilized to document 

income for applicants with less 

than a 25 percent ownership of a 

partnership, S corporation, 

limited liability company (LLC), 

ordinary income, net rental real 

estate income, or other net rental 

income reported on IRS Form 

1065, 1120S, etc.

Include monetary amounts (cash 

distributions) that will be received 

in the ensuing 12 months.

Distributions of equipment,shares 

of real estate interest/ownership, 

non-monetary items, etc. are not 

included in the annual income.

Required History: Two years

Schedule K-1 income may be utilized to 

qualify applicants if the lender can 

confirm the business has adequate 

liquidity to support the withdrawal of 

earnings. The Schedule K-1 may provide 

this confirmation through “guaranteed 

payments to the partner.”

Continuance: These amounts will be 

presumed to continue unless there is 

documented evidence they will cease.

Required Documentation:

• Federal tax returns or IRS transcripts with all schedules.

• Schedule K-1 forms.
HB-1-3555

Attachment 9-A 

Page 16 of 30

Income Type Annual Income Repayment Income

Scholarships Include funds that will be received 

in the ensuing 12 months after 

deducting for tuition, fees, books 

and equipment.

Required History: Two years

Include remaining funds after deducting 

tuition, fees, books, and equipment.

Required Documentation:

• Award letter to state the benefit/scholarship amount or tuition assistance and date of termination.

• Evidence to support the deductions required to arrive at any repayment amount.

Seasonal Employment Include amounts that will be 

received in the ensuing 12 months.

Evidence of resignation, 

termination, retirement, or 

relocation from these positions may 

result in the exclusion of this 

income.

Required History: Two years, in the 

same line of work.

If the income is not earned at the time 

of submission to the Agency, the 

employer must provide verification that 

the applicants are still an employee 

along with an anticipated return to

work date.

Continuance: Income will be presumed 

to continue unless there is documented 

evidence the income will cease.

Documentation Source Options:

• Paystub(s)/Earning statement(s).

• W-2’s.

• Written VOE or electronic verifications.

• Federal income tax returns or IRS tax transcripts with all schedules.

• Section 9.3E provides additional information on employment verification options.

Secondary Employment Include amounts that will be 

received in the ensuing 12 months.

Evidence of resignation, 

termination, retirement, or 

relocation from these positions may

result in the exclusion of this 

income.

Required History: One year of working 

primary and secondary employment 

concurrently.

Continuance: Income will be presumed 

to continue unless there is documented 

evidence the income will cease.

Documentation Source Options:

• Paystub(s)/Earning statement(s).

• W-2’s.

• Written VOE or electronic verifications.

• Federal income tax returns or IRS tax transcripts with all schedules.

• Section 9.3E provides additional information on employment verification options.
HB-1-3555

Attachment 9-A

Page 17 of 30

(03-09-16) SPECIAL PN

Revised (09-27-23) PN 592

Income Type Annual Income Repayment Income

Section 8 Housing Vouchers Do not include Required History: None

The amount of the benefit payment may 

be included in repayment income.

When the benefit is paid directly to the 

servicer, the amount of the benefit may 

be considered as a reduction of the PITI, 

rather than an addition to repayment 

income. A manual file submission is 

required in this instance.

Required Documentation:

• Benefit/Award letter to verify the subsidy amount.

• When used as a reduction of the PITI, documentation verifying the benefit is paid directly to the servicer must 

be maintained in the lender’s permanent loan file.

GUS Instructions:

• Enter the amount on the “Borrower Information” page under “Income from Other Sources.” Use the 

dropdown button in the “Income Source” field and select “Housing Choice Voucher Program.” Tab to the 

“Monthly Income” field and enter the amount.

Self-Employment Income and 

Independent Contractors(1099)

Lenders must analyze Federal tax 

returns to determine the appropriate 

gross income calculations.

Include zero in annual income for a 

business loss.

Required History: Two years

Lenders must analyze Federal tax 

returns to determine the appropriate 

gross income.

Depreciation, depletion, business use

of home, and other paper deductions 

may be allowed to be added back to 

the net profit/loss. Lenders may refer 

to Fannie Mae Form 1084 or 

comparable self-employment analysis 

form for assistance.

A business loss must be deducted from 

repayment income.

Required Documentation:

• Most recent two years of Federal income tax returns or IRS tax transcripts with all schedules; and

• YTD Profit and Loss Statement (audited or unaudited), used for income trend analysis.
HB-1-3555

Attachment 9-A 

Page 18 of 30

Income Type Annual Income Repayment Income

Separate Maintenance/Alimony Include amounts that will be 

received in the ensuing 12 months.

Legally enforceable payments that 

have not been received may be 

excluded when payments are not 

received for an extended period of 

time and a reasonable effort has 

been made to collect them through 

the official entity responsible for 

enforcing such payments.

Court Ordered Payments:

Required History: Six months

Maintenance that meets the minimum 

history, but the payment amounts are 

not consistent must use an average that 

is consistent with the payor’s current 

ability/willingness to pay.

Voluntary Payment Agreements:

Required History: One year

Maintenance that meets the minimum 

history, but the payment amounts are 

not consistent must use an average that 

is consistent with the payor’s current 

ability/willingness to pay.

Required Documentation:

• Final divorce decree, legal separation agreement, or court order (front and pertinent pages) to document the 

amount and timeframe of the obligation.

• Evidence of timely receipt and consistent amount for required history: bank statements, canceled checks,

deposit slips, tax returns, etc.

Social Security Income Include amounts that will be 

received in the ensuing 12 months. 

Exclusions may apply under 7 

CFR 3555.152(b)(5).

Required History: None, the income 

must be received at the time of 

submission to the Agency.

Benefit letters that do not include 

an expiration date will be presumed 

to continue.

Benefits received by applicants on 

behalf of minors (funds are intended 

for their support) may be utilized for 

repayment income.

Benefits received by applicants on behalf 

of an adult household member may be

used for repayment income when there is 

evidence they are the legal guardian for 

the non-applicant adult

household member.

Documentation Source Options:

• Benefit statement from the Social Security Office or Form SSA-1099/1042S, Social Security Benefit 

Statement.

• Legal guardianship/payee status for adult household members.
HB-1-3555

Attachment 9-A

Page 19 of 30

(03-09-16) SPECIAL PN

Revised (09-27-23) PN 592

Income Type Annual Income Repayment Income

Student Loans Do not include Do not include

Supplemental Nutrition 

Assistance Program (SNAP)

Do not include Do not include

Temporary Leave 

Income/Temporary Reduction 

to Income with current 

employer

This guidance is for applicants

that are currently employed. This 

guidance does not apply to 

applicants that are currently 

unemployed.

Include amounts that will be 

received in the ensuing 12 months. 

Exclusions may apply under 7 

CFR 3555.152(a)(5).

Required History: None, the income 

must be received at the time of loan 

closing.

The lender must obtain all the 

following from the employer:

o Verification the applicants have the 

right to return to work following the 

leave;

o Documentation of the 

applicant’sreturn date;

o Verification of the duration and 

amount of temporary leave income; 

and

o Documentation of regular 

employment prior to temporary leave.

Applicants that will return to work prior

to the first mortgage payment may use 

their pre-leave income.

Applicants that will not return to work 

prior to the first mortgage payment must 

use their current income received (which 

may be zero) plus non-retirement liquid 

reserves. Reserves must meet the 

required history and calculations in the 

Asset and Reserves section of this 

matrix. The total of income and assets 

must meet the mortgage obligation and 

additional monthly liability payments 

until the applicant’s date of return to 

work.

Lenders must document their calculation 

of income plus reserves divided by 

applicable months on Attachment 9-B, 

the Uniform Underwriting and 

Transmittal Summary, or on an alternate 

underwriting form.

Documentation Source Options:

• All employer verifications required by this section.

• Benefit statement/Contract.

• Paystub(s)/Earning statement(s).

• Written VOE or electronic verification.

• Section 9.3E provides additional information on employment verification options.
HB-1-3555

Attachment 9-A 

Page 20 of 30

Income Type Annual Income Repayment Income

Tips Include amounts that will be 

received in the ensuing 12 months. 

Exclusions may apply under 7 

CFR 3555.152(b)(5).

Required History: One year

Underwriters must analyze tip income for 

the current pay period, and YTD 

earnings. Significant variances (increase 

or decrease) of 20 percent or greater in 

income from the previous 12 months 

must be analyzed and documented (e.g. 

variances due to seasonal/holiday/etc.) 

before considering the income stable and 

dependable.

Continuance: Income will be presumed 

to continue unless there is

documented evidence the income will

cease.

Documentation Source Options:

• Paystub(s)/Earning statement(s).

• W-2’s.

• Written VOE or electronic verifications.

• Federal income tax returns or IRS tax transcripts with all schedules.

• Section 9.3E provides additional information on employment verification options.

Trust Income Include amounts that will be 

received in the ensuing 12 months. 

Exclusions may apply under 7 

CFR 3555.152(b)(5).

Required History: Six months

Required Documentation:

• Trust documents: legally filed or recognized to document the balance, monthly payments, term of payments, 

mode of payment delivery (revocable or irrevocable), etc.

• Documentation to support payments received: bank statements, deposit slips, trust account statements, etc.

Unemployment Include amounts that will be 

received in the ensuing 12 months.

Benefits received while seeking 

new full/part time employment that 

have ended are excluded under 7 

CFR 3555.152(b)(5)(v).

Required History: Two years

Continuance: Income will be presumed 

to continue unless there is documented 

evidence the income will cease.

Applicants with a sole source of 

unemployment income are ineligible for

a guaranteed loan.

Documentation Source Options:

• Evidence of compensation: IRS Form 1099 or equivalent.

• Federal income tax returns or IRS tax transcripts with all schedules.
HB-1-3555

Attachment 9-A

Page 21 of 30

(03-09-16) SPECIAL PN

Revised (09-27-23) PN 592

Income Type Annual Income Repayment Income

Unreimbursed Employee or 

Business Expenses

The total amount of unreimbursed 

expenses may be deducted from 

annual and adjusted annual income.

Required History: Two years

Continuance: A trend will be presumed to 

continue unless there is documented

evidence the expenses/deductions will 

cease.

Documentation Source Options:

• IRS 2106, Schedule A, Schedule C, or equivalent IRS filed form.

• 2 years of Federal income tax returns or IRS tax transcripts with all schedules.

VA Benefits Include amounts that will be 

received in the ensuing 12 months. 

Exclusions may apply under 7 

CFR 3555.152(b)(5).

Required History: None, the income 

must be received at the time of submission 

to the Agency.

Lenders must document:

o Applicants are currently receiving 

the income; and

o The amount of the income received 

each month

Benefits with no expiration date stated 

will be presumed to continue.

Benefits received by applicants on behalf

of minors (funds are intended for their 

support) may be utilized for repayment 

income.

Benefits received by applicants on behalf

of an adult household member may be

used for repayment income when there is

evidence they are the legal guardian for 

the non-applicant adult household 

member.

Documentation Source Options:

• Benefit statement from the Office of Veteran’s Affairs.

• Legal guardianship/payee status for adult household members.
HB-1-3555

Attachment 9-A 

Page 22 of 30

Income Type Annual Income Repayment Income

Variable Income (e.g. piece rate, 

union work, and other similar 

types of pay structures)

Include amounts that will be 

received in the ensuing 12 months. 

Exclusions may apply under 7 CFR 

3555.152(b)(5).

Required History: One year, in the same 

or similar line of work.

Underwriters must analyze variable 

income earnings for the current pay 

period and YTD earnings. Significant 

variances (increase or decrease) of 20 

percent or greater in income from the 

previous 12 months must be analyzed and 

documented (e.g. variances due to 

seasonal/holiday, etc.) before considering 

the income stable and dependable.

Continuance: Income will be presumed 

to continue unless there is documented 

evidence the income will cease.

Required Documentation:

• Paystub(s)/Earning statement(s).

• W-2’s.

• Written VOE or electronic verifications.

• Federal income tax returns or IRS tax transcripts with all schedules.

• Section 9.3E provides additional information on employment verification options.

Worker’s Compensation Include amounts that will be 

received in the ensuing 12 months.

Lump sums or sporadic payments

may be excluded under 7 CFR 

3555.152(b)(5).

Required History: Six months

.

Required Documentation:

• Award letter or settlement to state amount and duration of payments.

• Earnings statements/Paystubs.

• Written VOE from employer.
HB-1-3555

Attachment 9-A

Page 23 of 30

(03-09-16) SPECIAL PN

Revised (09-27-23) PN 592

Adjusted Annual Income Deductions

7 CFR 3555.152(c)

Dependent Deduction [7 CFR 3555.152(c)(1)]:

• $480 deduction per eligible dependent at the time of submission to the Agency.

• Applicants with shared custody may include their child(ren).

Documentation Source Options:

• Certify to the household number on Form RD 3555-21.

• List all household members in GUS and Attachment 9-B, the lender’s Uniform Underwriting Transmittal 

Summary (FNMA Form 1008/Freddie Mac Form 1077), or equivalent.

Child Care Expenses [7 CFR 3555.152(c)(2)]:

• Care for children age 12 and under.

• Care is necessary to enable a family member to work, seek employment, or attend school.

• Calculate anticipated child care expenses for the ensuing 12 months.

• Applicants that have not placed their child into care or have no evidence to support payments, deposits, or 

registration fees are ineligible for this deduction.

Documentation Source Options:

• Utilize income tax returns, receipts, or third- party verifications provided by a licensed childcare facility or 

provider on letterhead that 1. Identifies the child enrolled; 2. Date of enrollment; 3. Payment due; and 4. 

Payment history.

• Relatives or non-licensed private individuals who provide care must also provide evidence of payments 

made (e.g. canceled checks, money order receipts, bank statements, etc.).

• Child support payments and school tuition are not eligible deductions.

• Attachment 9-G is an available option to document childcare expenses, but may not be used alone when 

additional documentation is required per this section to verify payment (i.e. relatives and private 

individuals).

• Calculations must be recorded on Attachment 9-B, the lender’s Uniform Underwriting Transmittal Summary 

(FNMA Form 1008/Freddie Mac Form 1077), or equivalent.

Disability Expenses [7 CFR 3555.152(c)(3)]:

• Deduction for eligible expenses that exceed three percent of the annual income.

• Eligible expenses: 1. Allow the disabled individual or another household member to work; 2. Are nonreimbursable by insurance or other sources; and 3. Do not exceed the income earned by the person who is 

working due to the care provided.

• Examples include but are not limited to daily living assistance, wheelchairs, ramps, adaption needs, 

workplace equipment, etc.

• Utilize documentation to estimate anticipated annual expenses.

Documentation Source Options:

• Third party verifications for caregivers/agencies for the dates, costs, and fees.

• Receipts, itemized income tax returns, and other evidence to support the deductions.

• Calculations must be recorded on Attachment 9-B, the lender’s Uniform Underwriting Transmittal Summary 

(FNMA Form 1008/Freddie Mac Form 1077), or equivalent.
HB-1-3555

Attachment 9-A 

Page 24 of 30

Adjusted Annual Income Deductions

7 CFR 3555.152(c)

Elderly Household Deduction [7 CFR 3555.152(c)(4)]:

• Applicants age 62 or older.

• One $400 deduction allowed per household.

Documentation Source Options:

• Certify to date of birth on the loan application.

Medical Expenses [7 CFR 3555.152(c)(5)] (Elderly and Disabled Households Only):

• Deduction for eligible expenses that exceed 3 percent of the annual income for entire family.

• Definition of elderly family is in 7 CFR 3555.10.

• Utilize documentation to estimate anticipated annual expenses.

Documentation Source Options:

• Itemized tax return documents.

• Receipts for insurance premiums, prescriptions, dental and eye exams, eyeglasses, medical/health products 

or apparatus, hearing aids, visiting or live in care providers, etc.

• Calculations must be recorded on Attachment 9-B, or lender’s Uniform Underwriting Transmittal Summary 

(FNMA Form 1008/Freddie Mac Form 1077), or equivalent.
HB-1-3555

Attachment 9-A

Page 25 of 30

(03-09-16) SPECIAL PN

Revised (09-27-23) PN 592

Assets and Reserves

7 CFR 3555.152(d)

Cash Reserves calculated by the system represent the amount of liquid assets that remain available to the 

applicants/borrowers after loan closing (includes amounts received at closing). Lenders must use caution and not 

overstate assets utilized for reserves.

Although all household assets must be verified and documented in the permanent loan file, the lender may 

underwrite to the most conservative approach with no consideration of assets entered into GUS.

When assets are entered into GUS and used as reserves, lenders must ensure that the funds will be available to the 

applicants post-closing. 

Unverified funds are not an acceptable source of funds for down payment, closing costs, etc. 

USDA does not require evidence from all parties to access joint or business accounts unless access to the funds are 

restricted without it.

Bridge Loan

Documentation:

• Evidence of loan proceeds, where they are held (depository account, etc.), and balance remaining.

• Confirm corresponding liability for this debt is included in the total debt ratio if applicable.

Reserves: Eligible

Funds to Close: Eligible

Business Accounts

Documentation:

• Two months of recent bank statements; or

• Verification of Deposit (VOD) and a recent bank statement (official electronic printout of monthly statement 

is acceptable).

Reserves: Eligible

• Lenders must use the balance as reflected on the most current bank statement, or on the verification 

of deposit if the date on the verification of deposit is dated after the bank statement (online 

transaction printouts, registers or lists are not permitted in lieu of bank statements).

Funds to Close: Eligible

GUS Instructions:

• Enter as Asset Type “Other” in the “Other Assets You Have” section, and select either “Other Liquid Asset” 

or “Other Non-Liquid Asset.”

Cash on Hand

Documentation:

• Applicants must supply a letter of explanation to state how the funds were accumulated (how

much weekly/monthly/etc.).

• Lender must determine reasonableness of accumulation based on income stream, spending habits, etc.

Reserves: Ineligible

Funds to Close: Eligible

Certificate of Deposit (CD)

Documentation:

• Recent account statement (monthly, quarterly, etc.) to evidence the account balance and early withdrawal 

penalty, if applicable.

Reserves: Eligible

• Lenders may use the current vested balance, minus applicable fees/penalties.

Funds to Close: Eligible
HB-1-3555

Attachment 9-A 

Page 26 of 30

Assets and Reserves

Depository Accounts: Checking, Money Market Accounts, and Savings

Documentation:

• Two months of recent bank statements; or

• Verification of Deposit (VOD) and a recent bank statement (official electronic printout of monthly statement

is acceptable).

• Investigate all recurring deposits on the account statements that are not attributed to wages or earnings 

to confirm the deposits are not from undisclosed income sources. There is no tolerance or percentage 

of the amount of a recurring deposit that is not required to be investigated.

• Investigate individual (non-recurring) deposits greater than $1,000 on the account statements that are 

not attributed to wages or earnings to confirm the deposits are not from undisclosed income sources.

• If the source of a deposit is readily identifiable on the account statement(s), such as a direct deposit 

from an employer, the Social Security Administration, an IRS or state income tax refund, or a transfer 

of funds between verified accounts, and the source of the deposit is printed on the statement, the lender 

does not need to obtain further explanation or documentation. However, if the source of the deposit is 

printed on the statement, but the lender still has questions as to the source of the deposit, the lender 

should obtain additional documentation.

Reserves: Eligible

• Lenders must use the balance as reflected on the most current bank statement, or on the verification of 

deposit if the date on the verification of deposit is dated after the bank statement. Electronic printouts 

are not permitted, unless they are the official electronic statements provided by the banking 

institution. . Deposited gift funds require further documentation and calculation. Refer to the “Gift 

Funds” section of this Attachment for further guidance.

Funds to Close: Eligible

Earnest Money

Documentation:

• Retain a copy of the check, money order receipt, etc. that was remitted for the earnest money.

Reserves: Eligible

Funds to Close: Eligible 

GUS Instructions:

• Earnest money that has cleared an applicant’s depository account may be entered under the “Other Credits” 

section of the “Lender Loan Information” GUS application page. The amount of earnest money should not be 

reflected in the balance of any asset entered on the “Assets and Liabilities” application page.

• Refer to the “Gift Funds” section of this Attachment for additional guidance when gift funds are used for the 

Earnest Money deposit.
HB-1-3555

Attachment 9-A

Page 27 of 30

(03-09-16) SPECIAL PN

Revised (09-27-23) PN 592

Assets and Reserves

Gift of Equity, Sweat Equity, or Rent Credits

Documentation:

• These gifts or credits must be applied as a reduction to the purchase price of the dwelling.

• Ensure the appraiser is aware of the gift and/or credit. This will allow them to properly complete the 

appraisal report, note the reduction, and support the appraised value compared to purchase price, if 

applicable.

• The borrower may not receive cash back at loan closing for these gifts and/or credits.

Reserves: Ineligible

Funds to Close: Ineligible

Gift Funds

Documentation:

• Gift funds are considered the applicant’s own funds, therefore excess gift funds are eligible to be returned to 

the applicants at loan closing.

• Gift funds may not be contributed from any source that has an interest in the sale of the property (seller, 

builder, real estate agent, etc.).

• Gift funds must be properly sourced:

o If the funds have been deposited into the borrower’s account, obtain a gift letter to state the

funds do not have to be repaid and a bank statement showing the withdrawal from the donor’s 

account. Cash on hand is not an acceptable explanation for the source of funds.

o If the funds have not been deposited into the borrower’s account, obtain a gift letter to state the 

funds do not have to be repaid, a certified check, money order, or wire transfer, and a bank 

statement as evidence of funds from the donor’s account. Cash on hand is not an acceptable 

explanation for the source of funds.

o If the gift funds will be sent directly to the settlement agent, the lender must obtain a gift letter 

to state the funds do not need to be repaid, a bank statement as evidence of funds from the 

donor’s account, and verification the funds have been received by the settlement agent. Cash on 

hand is not an acceptable explanation for the source of funds.

Reserves: Ineligible 

Fundsto Close: Eligible 

GUS Instructions:

• Gift funds should be entered in the “Gifts or Grants You Have Been Given or Will Receive for This Loan” 

section of the “Loan and Property Information” GUS application page. If the funds have already been 

deposited into an asset account, select “deposited” and include the amount of the gift in the applicable asset 

account on the “Assets and Liabilities” GUS application page. If the funds have not been deposited into an 

asset account, select “not deposited” and do not include the gift in an asset account on the “Assets and 

Liabilities” GUS application page.

• Gift funds applied as Earnest Money should not be reflected in the “Gifts or Grants You Have Been Given or

Will Receive for This Loan” section of the “Loan and Property Information” GUS application page.
HB-1-3555

Attachment 9-A 

Page 28 of 30

Assets and Reserves

Individual Development Account (IDA)

Documentation:

• Two months of account statements; or

• Verification of Deposit (VOD); or

• Alternate evidence provided by the account trustee/management to support account activity and monthly 

balances.

• Verification must document the vested/amount available for withdrawal without penalty orreimbursement.

Reserves: Eligible

• Lenders must use the lesser of the current vested balance or the previous month’s ending vested balance.

Funds to Close: Eligible

Life Insurance

Documentation:

• Document the applicant’s receipt of funds from the policy.

• Verify where the proceeds are held and confirm they are available to the applicants.

• Confirm corresponding liability for this debt in the total debt ratio, if applicable.

Reserves: Eligible

Funds to Close: Eligible

Lump Sum Additions: IRS Refunds, Lottery Winnings, Inheritances, Withdrawals from Retirement Accounts

Documentation:

• Document the applicant’s receipt of funds.

• Verify where the proceeds are held and confirm they are available to the applicants.

• One-time deposits may not require annual income consideration under 7 CFR 3555.152(b)(5)(vi).

• Do not enter into GUS separately if it is already included in the borrower’s depository account.

Reserves: Eligible

Funds to Close: Eligible

Personal Property Sold

Documentation:

• Document the applicant’s ownership of the asset.

• Evidence of the transfer of ownership of the asset through a bill of sale or statement from the purchaser.

• Receipt of sales proceeds through deposit slips, bank statements, or a copy of the purchasing party’s 

canceled check, money order, or electronic funds transfer.

Reserves: Eligible

Funds to Close: Eligible
HB-1-3555

Attachment 9-A

Page 29 of 30

(03-09-16) SPECIAL PN

Revised (09-27-23) PN 592

Assets and Reserves

Retirement: 401(k), IRA, etc.

Documentation:

• Recent account statement (monthly, quarterly, etc.) to evidence the account balance, vested balance available 

for withdrawal, and early withdrawal penalty, if applicable.

• Funds borrowed against these accounts may be used for funds to close, but are not considered in reserves. 

The borrowed funds should not be reflected in the balance of any asset entered on the “Assets and 

Liabilities” application page.

Reserves: Eligible

• 60 percent of the vested amount available to the applicants may be used as reserves.

• Funds borrowed against these accounts are not eligible for reserves. The borrowed funds should not be 

reflected in the balance of any asset entered on the “Assets and Liabilities” application page.

Funds to Close: Eligible

Sales Proceeds: Real Estate Owned

Documentation:

• Closing disclosure or acceptable alternative.

• Verify where the proceeds are held and confirm they are available to the applicants.

Reserves: Eligible

• Reserves will be calculated based on the data entered in the “Assets and Liabilities” and “Real Estate” 

application pages in GUS. Lenders must confirm the GUS calculation. An override of the data entry, or 

other asset data entry for this purpose, must have supporting documentation.

• Net equity/sales proceeds manually entered on a loan application must have supporting documentation.

Funds to Close: Eligible

Secured Loan from Personal Asset

Documentation:

• Document the amount of the secured loan proceeds and the source (e.g. Certificate of Deposit, stocks, etc.).

• Confirm corresponding liability for this debt is included in the total debt ratio, if applicable.

• This guidance does not apply to funds borrowed from an applicant’s retirement account (e.g. 401(k), IRA, 

etc.). Please review the “Retirement” section of this matrix for guidance on these types of accounts.

Reserves: Eligible

Funds to Close: Eligible

Stocks, Stock Options, Bonds, Mutual Funds, and Investments

Documentation:

• Recent account statement (monthly, quarterly, etc.) to evidence the account balance, vested balance available 

for withdrawal, and early withdrawal penalty, if applicable.

Reserves: Eligible

Funds to Close: Eligible

Trust Accounts

Documentation:

• Verify applicants have access to the funds, amounts, circumstances, requirement to repay withdrawal, etc.

• Recent account/trust statement (monthly, quarterly, etc.) to evidence the account balance.

Reserves: Eligible

Funds to Close: Eligible
HB-1-3555

Attachment 9-A 

Page 30 of 30

Assets and Reserves

Unsecured Loan: Borrowed Funds

Documentation:

• Document the amount of the loan proceeds and the source (e.g. signature loan, line of credit, credit card 

advance/loan, overdraft protection, etc.).

• Confirm corresponding liability for this debt is included in the total debt ratio, if applicable.

Reserves: Ineligible

Funds to Close: Ineligible

ASSET CHANGES AFTER CONDITIONAL COMMITMENT ISSUANCE

Assets verified prior to loan closing that are less than the amounts entered into GUS or on the loan application may 

retain the issued Conditional Commitment (Form RD 3555-18/18E) when one the following are met:

1. The application was approved with zero months of cash reserves; or

2. The application will continue to have a minimum of four months of cash reserves.
HB-1-3555

Attachment 9-B 

Page 1 of 3

Lender Instructions: Determine eligible household income for the Single-Family Housing Guaranteed Loan Program (SFHGLP) by documenting all sources/types of income for all household members. Qualify the loan by documenting all sources/types of income that is 

stable and dependable, utilized to repay the loan.

Applicant: Co Applicant:

WORKSHEET FOR DOCUMENTING ELIGIBLE HOUSEHOLD AND REPAYMENT INCOME

Identify all Household Members Age Full-time 

Student Y/N?

Disabled 

Y/N?

Receive 

Income Y/N?

Source of Income

ANNUAL INCOME CALCULATION (Consider anticipated income for the next 12 months for all adult household members as described in 7 CFR 3555.152(b)

and HB-1-3555, Chapter 9. Website forinstructions: https://www.rd.usda.gov/resources/directives)

1. Applicant (Wages, salary, self-employed, commission, overtime, bonus, tips, alimony, child support, pension/retirement, social security, disability,

trust income, etc.). Calculate and record how the calculation of each income source/type was determined in the space below.

2. Co-Applicant (Wages, salary, self-employed, commission, overtime, bonus, tips, alimony, child support, pension/retirement, social security,

disability, trust income, etc.) Calculate and record how the calculation of each income source/type was determined in the space below.

3. Additional Income to Primary Income (Automobile Allowance, Mortgage Differential, Military, Secondary Employment, Seasonal

Employment, Unemployment, etc.). Calculate and record how the calculation of each income source/type was determined in the space below.

4. Additional Adult Household Member (s) who are not a party to the note (Primary Employment from Wages, Salary, Self- Employed,

Additional Income to Primary Employment, Other Income, etc.). Calculate and record how the calculation of each income source/type was

determined in the space below.

5. Income from Assets (Income from household assets as described in HB-1-3555, Chapter 9). Calculate and record how the calculation of each

income source/type was determined in the space below.

6. Annual Household Income

(Total 1 through 5)

(03-09-16) SPECIAL PN

Revised (01-09-23) PN 573
HB-1-3555

Attachment 9-B 

Page 2 of 3

ADJUSTED ANNUAL INCOME CALCULATION (Consider qualifying deductions as described in 7 CFR 3555.152(c) and HB-1-3555 Chapter 9)

County: Moderate State: Income Limit:

13. Adjusted Annual Income (Item 6 minus item 12)

Income cannot exceed Moderate Income Limit to be eligible for SFHGLP

Applicant: Co Applicant:

7. Dependent Deduction ($480 for each child under age 18, full-time student, or disabled family member over the age of 18) - # x

$480

8. Annual Child Care Expenses (Reasonable expenses for children 12 and under) Calculate and record the calculation of the deduction in the

space below.

9. Elderly/Disabled Household (1 household deduction of $400 if 62 years of age or older, or disabled and a party to the note)

10. Disability (Unreimbursed expenses in excess of 3% of annual income per 7 CFR 3555.152(c) and HB-1-3555 Chapter 9)

Calculate and record the calculation of the deduction in the space below.

11. Medical Expenses (Elderly/Disabled households only. Unreimbursed medical expenses in excess of 3% of annual income per 7 CFR 3555.152(c)

and HB-1-3555 Chapter 9) Calculate and record the calculation of the deduction in the space below.

12. Total Household Deductions (Total 7 through 11)
HB-1-3555

Attachment 9-B 

Page 3 of 3

(03-09-16) SPECIAL PN

Revised (01-09-23) PN 573

Preparer’s Signature:

Name (Print): 

Title: 

Date: ___________________

Applicant: ______________________________________________ Co Applicant: ______________________________________________

14. Stable Dependable Monthly Income (Parties to note only). Calculate and record how the calculation of each income source/type was determined in 

the space below. Identify income type by party to note.

Applicant Co-Applicant Total

Base Income

Calculation of Base Income: Calculation of Base Income:

Other Income

Calculation of Other Income: Calculation of Other Income:

Total Income

15. Monthly Repayment Income (Total of 14)

MONTHLY REPAYMENT INCOME CALCULATION (Consider stable and dependable income of parties to the note as described in 7 

CFR 3555.152(a) and HB‐1‐3555 Chapter 9. Non-occupant borrowers or co-signers are not allowed.)
HB-1-3555

Attachment 9-C

Page 1 of 5

(03-09-16) SPECIAL PN

Revised (09-27-23) PN 592

ATTACHMENT 9-C 

EXAMPLE CASE STUDY

Household members:

Name Relationship Comments Household Income, Assets, and Expenses

David 

Example

Applicant 

Age: 40

Employed, party to note $1,250/week wages;

Savings account balance $41,400 (APY .5)

Checking account balance $3,500

Betsy Example Applicant

Age: 40

Employed, party to note $15.50/hr wages – working 20 hours week

$100/month child support from ex-husband 

(Kathy’s father)

Cynthia 

Example

David’s mother

Age: 67

Disabled, moved in when 

husband died, not a party to the 

note

$800/month Social Security benefits

 

 Savings account balance $3,800 (APY .045)

Checking account balance $1,400

Janet Smith Daughter

Age: 19

Full-time college student, parttime employed, not a party to 

the note

$600/month wages

Kathy Smith Daughter

Age: 14

Full-time junior-high school 

student, part-time employed, 

not a party to the note

$9.00/hour x 8 hours per week x 4 weeks =

$288 monthly earnings

Chris Doe Foster child 

Age: 8

Full-time elementary student, 

not a party to the note

County pays household $800/month to care for 

foster child. The family pays $50 per week/$200 

per month for after school child care.

Eligible Household Income: Calculate annual and adjusted annual income to determine eligibility of the household for the 

SFHGLP. For Annual Income Calculation – Consider income of all household members:

• Count David’s wages • Count Betsy’s wages • Count child support

(Betsy)

• Count only the first

$480 of Janet’s wages 

(Household member is 

greater than 18 years 

of age but is a fulltime student)

• Do not count Kathy’s 

wages (Household 

member is a minor 

and lessthan 18 years 

of age)

• Count Cynthia’s Social 

Security

• Count actual income 

from assets from all 

members of the 

household if they total

$50,000 or more. 

• Do not count payments for 

Care of foster child

• Passbook rate is .03
HB-1-3555

Attachment 9-C

Page 2 of 5

Adjusted Annual Income Calculation:

Dependent Deduction

• Three dependent deductions are permitted for Kathy (a minor), Janet (an adult full-time student, who is not the head of

household or spouse), and Cynthia (an adult individual with disabilities, who is not the head of household or spouse).

• A foster child is not a permanent household member, and therefore is not an eligible dependent.

• Total household members that meet the Household member definition in 7 CFR 3555.10 are David, Betsey,

Cynthia, Janet, and Kathy.

• A deduction of $1,440 in this example may be deducted ($480 for each eligible dependent x 3 = $1,440). Dependents are

Kathy, Janet, and Cynthia.

Child Care Deduction

• Child care expenses are permitted for the care of a foster child but must not exceed the amount earned by the family

member enabled to work.

• Child care expenses are not permitted if another adult household member is available to care for the child. In this example, it

is assumed there are no adult household members available to care for the child.

• Since the cost of child care does not exceed an adult household member’s monthly earnings, the full amount of the child care may

be deducted.

Elderly or Disabled Household Deduction

• Cynthia, a household member, is 67. But she is not an applicant on the loan, therefore no elderly family deduction is allowed.

Medical Expense Deduction

• Family medical expenses cannot be deducted since this is not an elderly or disabled household as defined in 7 CFR 3555.152(c).

Disability Assistance Expenses

• No disability assistance expenses were claimed. To be allowed a deduction, the expenses would have to be necessary to enable 

a family member to work.

Repayment Income: Calculate the income utilized to repay the loan. Consider only income from parties to the note 

that is determined to be stable and dependable per 7 CFR 3555.152(a).

David and Betsy are parties to the note. David has worked the last two years earning $1,250 per week or $65,000 annually. Betsy 

has made $15.50/hour and worked 20 hours per week for the past five years consistently. Betsy receives child support for Kathy, paid 

through the court at $100 a month, or $1,200 annually. She has received support consistently for the past three years. Kathy is 14.

David and Betsy have cared for foster children for the past three years. Chris Doe is 8 years of age. The county pays $800.00 per 

month, or $9,600 annually to the household to care for the foster child. Foster care is not a source of income that is eligible for 

repayment income.

• David: $65,000 historical employment income divided by 12 = $5,416.67

• Betsy: $16,120 historical employment income divided by 12 = $1,343.33

• Betsy: $1,200 historical child support income divided by 12 = $100.00 [3-year continuance since Kathy is 14]

• Total stable and dependable income in accordance with 7 CFR 3555.152(a) = $6,860.00/month
HB-1-3555

Attachment 9-C

Page 3 of 5

(03-09-16) SPECIAL PN

Revised (09-27-23) PN 592

Lender Instructions: Determine eligible household income for the Single-Family Housing Guaranteed Loan Program (SFHGLP) by documenting all sources/types of income for all household members. Qualify the loan by documenting all sources/type of income that is 

stable and dependable utilized to repay the loan.

ATTACHMENT 9-C 

EXAMPLE CASE STUDY:

Applicant: David Example Co Applicant: Betsy Example

WORKSHEET FOR DOCUMENTING ELIGIBLE HOUSEHOLD AND REPAYMENT INCOME

Identify all Household Members Age Full-time 

Student Y/N?

Disabled 

Y/N?

Receive 

Income Y/N?

Source of Income

David Example 40 N N Y XYZ Employment

Betsy Example 40 N N Y 123 Employment, 

child support

Cynthia Example 67 N Y Y Social Security

Janet Smith 19 Y N Y PT Employment

Kathy Smith 14 Y N Y PT Employment

Chris Doe 8 Y N Y Foster care income

ANNUAL INCOME CALCULATION (Consider anticipated income for the next 12 months for all adult household members as described in 7 CFR 3555.152(b)

and HB-1-3555 Chapter 9. Website forinstructions: https://www.rd.usda.gov/resources/directives)

1. Applicant (Wages, salary, self-employed, commission, overtime, bonus, tips, alimony, child support, pension/retirement, social security,

disability, trust income, etc.) Calculate and record how the calculation of each income source/type was determined in the space below.

David - $1,250/wk x 52 = $65,000 $65,000.00

2. Co-Applicant (Wages, salary, self-employed, commission, overtime, bonus, tips, alimony, child support, pension/retirement, social security,

disability, trust income, etc.) Calculate and record how the calculation of each income source/type was determined in the space below.

Betsy - $15.50/hr x 20 hrs/wk x 52 = $16,120

Betsy – child support - $100 x 12 = $1,200

$17,320.00

3. Additional Income to Primary Income (Automobile Allowance, Mortgage Differential, Military, Secondary Employment, Seasonal

Employment, Unemployment, etc.) Calculate and record how the calculation of each income source/type was determined in the space

below. $0

4. Additional Adult Household Member (s) who are not a party to the note (Primary Employment from Wages, Salary, SelfEmployed, Additional income to Primary Employment, Other Income). Calculate and record how the calculation of each income

source/type was determined in the space below.

Cynthia- $800/month x 12 = $9,600

Janet = first $480 must be counted as full-time student over 18 years of age

$10,080.00

5. Income from Assets (Income from household assets, if total exceeds $50,000, as described in HB-1-3555, Chapter 9). Calculate and record how 

the calculation of each income source/type was determined in the space below.

 Total assets=$50,100

 David: Savings $41400x.005=$207, Checking: 3500x.003(passbook rate)=$10.50

 Cynthia: Savings $3800x.0045=$17.10, Checking: $1400x.003=$4.20

$238.80

6. Annual Household Income

(Total 1 through 5) $92,638
HB-1-3555

Attachment 9-C 

Page 4 of 5

ADJUSTED ANNUAL INCOME CALCULATION (Consider qualifying deductions as described in 7 CFR 3555.152(c) and HB-1-3555 Chapter 9)

$88,598.80

Oklahoma County: Washington Moderate State: Income Limit: $121,300

13. Adjusted Annual Income (Item 6 minus item 12)

Income cannot exceed Moderate Income Limit to be eligible for SFHGLP

Applicant: David Example Co Applicant: Betsy Example

7. Dependent Deduction ($480 for each child under age 18, full-time student, or disabled family member over the age of 18) - # 3 x

$480 $1,440.00

8. Annual Child Care Expenses (Reasonable expenses for children 12 and under) Calculate and record the calculation of the deduction

in the space below.

$50/week x 52 weeks/year = $2,600

$2,600.00

9. Elderly/Disabled Household (1 household deduction of $400 if 62 years of age or older, or disabled and a party to the note) $0

10. Disability (Unreimbursed expenses in excess of 3% of annual income per 7 CFR 3555.152(c) and HB-1-3555 Chapter 9)

Calculate and record the calculation of the deduction in the space below.

$0

11. Medical Expenses (Elderly/Disabled households only. Unreimbursed medical expenses in excess of 3% of annual income per

7 CFR 3555.152(c) and HB-1-3555 Chapter 9.) Calculate and record the calculation of the deduction in the space below.

$0

12.Total Household Deductions (Total 7

through 11)

$4,040.00
HB-1-3555

Attachment 9-C

Page 5 of 5

(03-09-16) SPECIAL PN

Revised (09-27-23) PN 592

MONTHLY REPAYMENT INCOME CALCULATION (Consider stable and dependable income of parties to the note as described in 7 

CFR 3555.152(a) and HB‐1‐3555 Chapter 9. Non-occupant borrowers or co-signers are not allowed.)

Preparer’s Signature: [Signature]

Name (Print): [Name]

Title: [Title]

Date: [Date]

Applicant: David Example Co Applicant: Betsy Example

14. Stable Dependable Monthly Income (Parties to note only). Calculate and record how the calculation of each income source/type was

determined in the space below. Identify income type by party to note.

Applicant Co-Applicant Total

Base Income

$5,416.67

Calculation of Base Income:

David: $65,000 / 12 = $5,416.67

 $1,343.33

Calculation of Base Income:

Betsy: $16,120 /12 = $1,343.33

$6,760.00

Other Income

Calculation of Other Income:

$100.00

Calculation of Other Income:

Betsy: Child Support: $1,200 / 12 = $100.00

[3 year continuance confirmed: Kathy is 14]

$100.00

Total Income $5,416.67 $1,443.33 $6,860.00

15. Monthly Repayment Income (Total of 14)

$6,860.00
HB-1-3555

Attachment 9-D

Page 1 of 2

ATTACHMENT 9-D

ANNUAL INCOME

SOURCES OF INCOME WHICH BY FEDERAL STATUTE ARE EXCLUDED FROM 

ANNUAL INCOME

The following sources, subject to exemption by Federal statute, are never considered when 

calculating annual income.

Any revenue which a Federal statute exempts shall not be considered income or used as a 

basis for determining eligibility for an Agency loan, payment assistance, or denying or reducing 

Federal financial assistance or benefits to which the recipient would otherwise be entitled.

Additional financial assistance, which is considered exempt income under Federal statutes, 

includes:

1. The imminent danger duty-pay to a service person applicant or spouse away from home

and exposed to hostile fire. Amounts of imminent danger pay for military personnel 

stationed in the Combat Zone are excluded from annual income effective August 2, 1990. 

Any military pay received by persons serving in the Combat Zone received on or after 

January 17, 1991, is excluded from annual income. The Combat Zone, as defined by the 

Presidential Executive Order 12744 dated January 21, 1991, consists of the Persian Gulf, 

the Red Sea, the Gulf of Oman, that portion of the Arabian Sea that lies north of 10 

degrees north latitude and west of 68 degrees east longitude, the Gulf of Aden, the total 

land areas of Iraq, Kuwait, Saudi Arabia, Oman, Bahrain, Qatar, and the United Arab 

Emirates. Immediately upon notification by the family, or based on information from a 

knowledgeable source that a member of the household was serving in the Combat Zone, 

the Loan Approval Official shall re- determine the household income retroactive to 

January 17, 1991, and adjust the applicant’s payment assistance accordingly.

2. Payments to volunteers under the Domestic Volunteer Service Act of 1973, including, but 

not limited to:

a. National Volunteer Antipoverty Programs, which include Volunteers in Service to 

America (VISTA), Peace Corps, Service Learning Programs, and Special Volunteer 

Programs.

(03-09-16) SPECIAL PN

Revised (03-31-21) SPECIAL PN 
HB-1-3555

Attachment 9-D

Page 2 of 2

b. National Older American Volunteer Programs for persons age 60 and over who include 

Retired Senior Volunteer Programs, Foster Grandparent Program, Older American 

Community Services Program, and National Volunteer Programs to Assist Small 

Business and Promote Volunteer Service to Persons with Business Experience, Service 

Corps of Retired Executives (SCORE), and Active Corps of Executives (ACE).

3. Payments received after January 1, 1989, from the Agent Orange Settlement Fund or any 

other fund established pursuant to the settlement in the "In Re Agent Orange" product 

liability litigation, M.D.L. No. 381 (E.D.N.Y.).

4. Payments received under the "Alaska Native Claims Settlement Act" or the "Maine 

Indian Claims Settlement Act."

5. Income derived from certain sub-marginal land of the United States that is held in trust 

for certain American Indian tribes.

6. Payments or allowances made under the Department of Health and Human Services LowIncome Home Energy Assistance Program.

7. Payments received from the Job Training Partnership Act.

8. Income derived from the disposition of funds of the Grand River Band of Ottawa Indians.

9. The first $2,000 of per capita shares received from judgment funds awarded by the Indian 

Claims Commission or the Court of Claims, or from funds held in trust for an American 

Indian tribe by the Secretary of Interior.

10. Payments received from programs funded under Title V of the Older Americans Act of 

1965.

11. Any other income which is exempted under Federal statute.
HB-1-3555

Attachment 9-E

Page 1 of 3

(03-09-16) SPECIAL PN

Revised (09-27-23) PN 592

ATTACHMENT 9-E

INFORMATION FOR ANALYZING TAX RETURNS 

FOR SELF-EMPLOYED APPLICANTS

Self-employed applicants must submit current documentation of the business’ income and 

expenses, including any applicable Federal tax returns that were filed with the IRS for the most 

recent two years in addition to year-to-date profit and loss and balance statements. Lenders are 

encouraged to use Fannie Mae Form 1084, Cash Flow Analysis, and Fannie Mae Form 1088, 

Comparative Income Analysis, to document a trend analysis for the applicant’s business. Lenders 

may use the Fannie Mae forms or any documentation that provides the same information.

Regardless of the analysis method used, and the documentation prepared by the lender, the loan 

file must contain clear and sufficient support for the lender’s decision regarding the viability of 

the business and loan approval.

A. Individual Tax Returns (IRS Form 1040)

The amount shown on the IRS Form 1040 as “adjusted gross income” must be either 

increased or decreased based on the lender’s analysis of the individual tax returns and any 

related tax schedules. Particular attention must be paid to:

• Wages, salaries, tips. If an amount is shown here, this may indicate the individual is 

a salaried employee of a corporation or has other sources of income. It may also 

indicate the spouse is employed, in which case the income must be subtracted from 

the adjusted gross income in the analysis. 

• Business income or loss (from Schedule C). The sole proprietorship income 

calculated on Schedule C is business income. Depreciation or depletion may be added 

back to adjusted gross income. 

• Rents, royalties, partnerships, etc. (from Schedule E). Any income received from 

rental properties or royalties may be used as income after adding back any 

depreciation shown on Schedule E. 

• Capital gain or loss (from Schedule D). This is generally a one-time transaction and 

should not be considered in determining repayment income. However, if the business 

has a constant turnover of assets resulting in gains or losses, the capital gain or loss 

may be considered in determining the income provided the applicants have at least 

two years’ tax returns evidencing capital gains. An example would include an 

individual who purchases old houses, remodels them, and sells them for a profit. 

• Interest and dividend income (from Schedule B). This income, both taxable and 

tax- exempt, may be added back to the adjusted gross income only if it has been 

received for the past two years and is expected to continue. If the interest-bearing 

asset will be liquidated as a source of the cash investment, the lender must adjust 

accordingly. 
HB-1-3555

Attachment 9-E 

Page 2 of 3

• Farm income or loss (from Schedule F). Any depreciation shown on Schedule F 

may be added back to the adjusted gross income. 

• IRA distributions, pensions and annuities, and social security benefits. The nontaxable portion of these items may be added back to the adjusted gross income if the 

income is expected to continue for the first three years of the mortgage. 

• Adjustments to income. Certain adjustments to income shown on the IRS Form 

1040 may be added back to the adjusted gross income. Among these are IRA and 

Keogh retirement deductions, penalties on early withdrawal of savings, health 

insurance deductions, and alimony payments. 

• Employee business expenses. These are actual cash expenses that must be deducted 

from the applicant’s adjusted gross income, if applicable. 

B. U.S. Corporate Income Tax Returns (IRS Form 1120)

Corporations are state chartered businesses owned by their stockholders. Compensation 

to its officers, generally in proportion to the percentage of ownership, is shown on the 

corporate tax returns and will appear on individual tax returns. If the applicants percentage of 

ownership is not shown, it must be separately obtained from the corporation’s accountant 

with evidence the applicants have the right to those funds. Once the adjusted business income

is determined, it is to be multiplied by the applicant’s percentage of ownership in the 

business.

In analyzing the corporate tax returns, lenders must adjust for the following:

• Depreciation and depletion. The corporation’s depreciation and depletion must be 

added back to after-tax income.

• Taxable income. This is the corporation’s net income before federal taxes. It must be 

reduced by the tax liability.

• Fiscal year versus calendar year. If the corporation operates on a fiscal year that is 

different from the calendar year, an adjustment must be made by the lender to relate 

corporate income to the individual tax return.

• Cash withdrawals. The applicant’s withdrawal of cash from the corporation may 

have a severe negative impact on the corporation’s ability to continue operating.

C. “S” Corporation Tax Returns

An “S” corporation is generally a small, start-up business, with gains and losses passed 

onto stockholders in proportion to each stockholder’s percentage of business ownership. The 

income for the owners comes from W-2 wages and is taxed at the individual rate.

The “compensation of officers” line on the IRS Form 1120-S is transferred to the 

applicant’s IRS Form 1040. Both depreciation and depletion may be added back to income in
HB-1-3555

Attachment 9-E

Page 3 of 3

(03-09-16) SPECIAL PN

Revised (09-27-23) PN 592

proportion to the applicant’s share of income. However, income must also be deducted 

proportionately by the total obligations payable by the corporation in less than one year. The 

applicant’s withdrawal of cash from the corporation may have a severe negative impact on 

the corporation’s ability to continue operating which must be considered in the analysis.

D. Partnership Tax Returns

A partnership is formed when two or more individuals form a business and share in 

profits, losses, and responsibility for running the company. Each partnership pays taxes on 

his or her proportionate share of the partnership income.

Both general and limited partnerships report income on the IRS Form 1065, U.S. Return 

of Partnership Income, which must be reviewed by the lender to assess the viability of the 

business. The partner’s share of income is carried over to Schedule E of IRS Form 1040.

Both depreciation and depletion may be added back to income in proportion to the 

applicant’s share of income. However, income must also be deducted proportionately by the 

total obligations payable by the partnership in less than one year. The applicant’s withdrawal 

of cash from the partnership may have a severe negative impact on the partnership’s ability 

to continue operating that must be considered in the analysis.

E. LLC Corporation Tax Returns

A limited liability corporation (LLC) can be formed by one or more individuals. Only 

Massachusetts and the District of Columbia require two or more individuals. Owners in an 

LLC are referred to as members. A member of an LLC normally has at risk, only his or her 

share of capital paid into the business. Members are not personally liable for the debts of the 

LLC. There are three ways in which an LLC is taxed:

• Single-owner LLC. LLC owners are taxed on business profits each year on their 

individual income tax returns. The IRS treats the LLC as a sole proprietorship. Profits 

are reported on Schedule C of an individual 1040 tax return.

• LLCs. The IRS treats the LLC as a partnership. The LLC prepares and files IRS

Form 1065, U.S. Return of Partnership Income, each year. LLC profits are allocated 

to each of the owners according to the profit-sharing arrangement set up in the LLC 

operating agreement. Each owner is given a Schedule K-1, which shows each owner’s 

share of LLC income. The owner then reports and pays taxes on this income on the 

owner’s 1040 income tax return.

• Check-the-Box Corporate Tax Treatment. Under these rules, any eligible business 

can elect to be taxed as a corporation by filing IRS Form 8832, Entity Classification 

Election, and checking the corporate income tax treatment box on the form. After 

making this election, profits kept in the business are taxed at the separate income tax 

rates that apply to corporations.
Agency Instructions: Recalculate income in the circumstances noted below. Retain this worksheet as part of the permanent SFHGLP 

file, when applicable. If the reviewer agrees with the lender’s income calculation, check the box indicating agreement with the lender’s 

calculation; otherwise complete the recalculation of income in the space provided.

Eligible Household Income: Recalculate the lender’s determination of eligible income if the lender’s adjusted annual income calculation 

is within 10 percent of the applicable published income limit for manually underwritten loans. The published income limits may be found 

at the public website: http://eligibility.sc.egov.usda.gov/eligibility/

Repayment Income: Recalculate the lender’s determination of repayment income for manually underwritten loans if the lender’s 

repayment ratios are within 10 percent of the published debt ratio limit found at §7 CFR 3555.151(h). [i.e. greater than 26.0% principal, 

interest, taxes and insurance (PITI) OR greater than 37.0% total debt ratio (TD)].

Definition - Manually Underwritten Loan Files: 1) Loans submitted by lenders that are not supported by the automated underwriting 

system, GUS. 2) Loans submitted to GUS, that have received an underwriting recommendation of Refer or Refer With Caution. Accept 

and Accept with Full Documentation loans are not manually underwritten loans.

HB-1-3555

Attachment 9-F

Page 1 of 2

ATTACHMENT 9-F 

WORKSHEET FOR DOCUMENTING ELIGIBLE

HOUSEHOLD AND REPAYMENT INCOME 

[AGENCY USE ONLY]

GENERAL INFORMATION

Applicant(s): GLS Borrower ID: Lender:

AGENCY WRITTEN ANALYSIS DOCUMENTING ELIGIBLE HOUSEHOLD INCOME

Consider anticipated income for the next 12 months for all adult household members as described in 7 CFR §3555.152(b). Consider 

qualifying deductions as described in 7 CFR 3555.152(c). Website for instructions/technical handbook/notices: 

https://www.rd.usda.gov/resources/directives.

Calculate and record how the calculation of each income source/type and deduction was determined in the space below.

 I have reviewed the lender’s calculation and compared it to income verifications. I agree with the lender’s 

calculation of eligible household income.

$

By:

Date: 

(Title)

(03-09-16) SPECIAL PN

Revised (01-09-23) PN 573
AGENCY WRITTEN ANALYSIS MONTHLY REPAYMENT INCOME

Consider the stable and dependable income of parties to the note as described in 7 CFR 3555.152(a). Website for 

instructions/technical handbook/notices: https://www.rd.usda.gov/resources/directives.

Calculate and record how the calculation of each income source/type and deduction was determined in the space below.

 I have reviewed the lender’s calculation and compared it to income verifications. I agree with the lender’s 

calculation of stable, dependable repayment income.

HB-1-3555

Attachment 9-F 

Page 2 of 2

Applicant(s): GLS Borrower ID: Lender:

By:

Date:

(Title)
(03-09-16) SPECIAL PN

HB-1-3555

Attachment 9-G 

Page 1 of 10

ATTACHMENT 9-G

OPTIONAL VERIFICATION OF INCOME FORMS

VERIFICATION OF PENSIONS AND ANNUITIES

REQUEST FOR INFORMATION

APPLICANT IDENTIFICATION

Name Social Security Number

REQUESTED INFORMATION

A. INCOME FROM ANNUITIES

1. $ Current monthly gross amount received. Will the applicant continue to receive this 

monthly amount for the next twelve months? Yes No If, no please explain.

2. Describe any deductions from the gross amount that are taken.

B. VERIFICATION OF ASSETS

1. $ Current market value of assets held in the retirement or pension plan.

2. Can the applicants withdraw amounts from the retirement account without retiring or terminating 

employment? Yes No. If yes, explain the terms of the withdrawal, including any 

penalties.

3. Can the applicants borrow against amounts in the retirement account? Yes No

If yes, explain the terms (maximum amount, interest rate, repayment term, purposes, etc.)

LENDER CERTIFICATION: Verifier must print their name, address and telephone number and certify to 

the accuracy of information recorded by executing below.

Name: Title:

Telephone Number:

(Signature)

WARNING: Knowingly and willingly making a false or fraudulent statement to any department of the United 

States Government is a felony punishable by fine and imprisonment (Title 18, Section 1001, U.S. Code)
HB-1-3555

Attachment 9-G 

Page 2 of 10

(03-09-16) SPECIAL PN

VERIFICATION OF STUDENT INCOME AND EXPENSES

REQUEST FOR INFORMATION

APPLICANT IDENTIFICATION

Name Social Security Number

REQUESTED INFORMATION

1. Describe any financial assistance the above-reference student receives.

Amount Source Purpose for Which Funds May Be Used

2. Describe any expenses the above-referenced student has for:

$ Tuition

$ Housing

$ Books

$ Supplies and Equipment

$ Transportation

$ Misc. Personal Expenses

$ Total

LENDER CERTIFICATION: Verifier must print their name, address and telephone number and certify to 

the accuracy of information recorded by executing below.

Name: Title:

Telephone Number:

(Signature)

WARNING: Knowingly and willingly making a false or fraudulent statement to any department of the 

United States Government is a felony punishable by fine and imprisonment (Title 18, Section 1001, U.S. 

Code)
(03-09-16) SPECIAL PN

HB-1-3555

Attachment 9-G 

Page 3 of 10

VERIFICATION OF MEDICAL EXPENSES

REQUEST FOR INFORMATION

APPLICANT IDENTIFICATION

Name Social Security Number

REQUESTED INFORMATION

1. Please list the purpose of any accumulated medical bills, identify to whom the amount is owed, and provide the 

amount to be paid during the coming 12 months.

Amount Owed To Medical Expenses for

2. Medical Insurance Premiums

$ Amount Paid Payment Period: per month, per year

Medical Insurance Premiums

$ Amount Paid Payment period: per month, per year

3. List other anticipated medical expenses

LENDER CERTIFICATION: Verifier must print their name, address and telephone number and certify to the 

accuracy of information recorded by executing below.

Name: Title:

Telephone Number:

(Signature)

WARNING: Knowingly and willingly making a false or fraudulent statement to any department of the United 

States Government is a felony punishable by fine and imprisonment (Title 18, Section 1001, U.S. Code)
HB-1-3555

Attachment 9-G 

Page 4 of 10

(03-09-16) SPECIAL PN

VERIFICATION OF SOCIAL SECURITY BENEFITS

REQUEST FOR INFORMATION

APPLICANT IDENTIFICATION

Name Social Security Number

REQUESTED INFORMATION

Social Security Data

Date of Birth

Gross Monthly Social Security Benefit Amount, Type of Benefit

 _________________ Gross Monthly Supplemental Security Income Payment Amount (including State 

Supplement) Type of Benefit

Amount of Monthly Deductions for Medicare Paid by the Applicants

LENDER CERTIFICATION: Verifier must print their name, address and telephone number and certify to the 

accuracy of information recorded by executing below.

Name: Title:

Telephone Number:

(Signature)

WARNING: Knowingly and willingly making a false or fraudulent statement to any department of the United 

States Government is a felony punishable by fine and imprisonment (Title 18, Section 1001, U.S. Code)
(03-09-16) SPECIAL PN

HB-1-3555

Attachment 9-G 

Page 5 of 10

VERIFICATION OF PUBLIC ASSISTANCE

REQUEST FOR INFORMATION

APPLICANT IDENTIFICATION

Name Social Security Number

REQUESTED INFORMATION

Number in Family: Rate Per Month

Aid to Families with Dependent Children $

General Assistance $

Does this amount include Court Awarded Support Payments Yes No

Amount Specifically Designated for Shelter and Utilities $

Other Assistance - Type: $

Total Monthly Grant $

Other Income - Source: $

*Maximum Allowance for Rent and Utilities $

Amount of Public Assistance given during the past 12 months $

LENDER CERTIFICATION: Verifier must print their name, address and telephone number and certify to the 

accuracy of information recorded by executing below.

Name: Title:

Telephone Number:

(Signature)

WARNING: Knowingly and willingly making a false or fraudulent statement to any department of the United 

States Government is a felony punishable by fine and imprisonment (Title 18, Section 1001, U.S. Code)
HB-1-3555

Attachment 9-G 

Page 6 of 10

(03-09-16) SPECIAL PN

VERIFICATION OF CHILD/DEPENDENT CARE

REQUEST FOR INFORMATION

APPLICANT IDENTIFICATION

Name Social Security Number

REQUESTED INFORMATION

Name of Person or Agency Providing Care:

Address:

Name(s) of person or Persons Cared for:

Specify Hours and Days of Care.

Average Amount Paid for Care: $ Week Month

Estimated Amount to be Paid in coming 12 months (including full-time summer care of school children, if 

applicable): $

Will any amount of this expense be reimbursed by an outside source: Yes No

LENDER CERTIFICATION: Verifier must print their name, address and telephone number and certify to the 

accuracy of information recorded by executing below.

Name: Title:

Telephone Number:

(Signature)

WARNING: Knowingly and willingly making a false or fraudulent statement to any department of the United 

States Government is a felony punishable by fine and imprisonment (Title 18, Section 1001, U.S. Code)
(03-09-16) SPECIAL PN

HB-1-3555

Attachment 9-G 

Page 7 of 10

VERIFICATION OF UNEMPLOYMENT BENEFITS

REQUEST FOR INFORMATION

APPLICANT IDENTIFICATION

Name Social Security Number

REQUESTED INFORMATION

1. Are benefits being paid now? Yes No

2. If yes, what is Gross Weekly payment? $

3. Date of Initial Payment

4. Duration of Benefits weeks

Is claimant eligible for future benefits? Yes No

5. If yes, How many weeks?

6. If no, what is termination date of benefits?

LENDER CERTIFICATION: Verifier must print their name, address and telephone number and certify to the 

accuracy of information recorded by executing below.

Name: Title:

Telephone Number:

(Signature)

WARNING: Knowingly and willingly making a false or fraudulent statement to any department of the United 

States Government is a felony punishable by fine and imprisonment (Title 18, Section 1001, U.S. Code)
HB-1-3555

Attachment 9-G 

Page 8 of 10

(03-09-16) SPECIAL PN

VERIFICATION OF BUSINESS EXPENSES 

REQUEST FOR INFORMATION

APPLICANT IDENTIFICATION

Name Social Security Number

REQUESTED INFORMATION

Based on business transacted during 20 , to 20

1. Gross Income $

2. Expenses:

(a) Interest on Loans $

b) Cost of Goods/Materials $

(c) Rent $

(d) Utilities $

(e) Wages/Salaries $

(f) Employee Contributions $

(g) Federal Withholding Tax $

(h) State Withholding Tax $

(i) FICA $

(j) Sales Tax $

(k) Other $

(l) Straight Line Depreciation $

Total Expenses $

3. Net Income $

LENDER CERTIFICATION: Verifier must print their name, address and telephone number and certify to the 

accuracy of information recorded by executing below.

Name: Title:

Telephone Number:

(Signature)

WARNING: Knowingly and willingly making a false or fraudulent statement to any department of the United 

States Government is a felony punishable by fine and imprisonment (Title 18, Section 1001, U.S. Code)
HB-1-3555

Attachment 9-G

Page 9 of 10

VERIFICATION OF SUPPORT PAYMENTS

REQUEST FOR INFORMATION

APPLICANT IDENTIFICATION

Name Social Security Number

REQUESTED INFORMATION

Name of Person Paying Support:

Address:

For ( ) Former Spouse

( ) Children

Children Names are:

Amount of Support $ Week, Month, Year

LENDER CERTIFICATION: Verifier must print their name, address and telephone number and certify to the 

accuracy of information recorded by executing below.

Name: Title:

Telephone Number:

(Signature)

WARNING: Knowingly and willingly making a false or fraudulent statement to any department of the United 

States Government is a felony punishable by fine and imprisonment (Title 18, Section 1001, U.S. Code)

(03-09-16) SPECIAL PN
HB-1-3555

Attachment 9-G 

Page 10 of 10

(03-09-16) SPECIAL PN

RECORD OF ORAL VERIFICATION OF EMPLOYMENT

APPLICANT INFORMATION  Applicant 

Name of Applicant/Co-Applicant:

 Co-Applicant

EMPLOYMENT INFORMATION VERIFIED  Present  Previous Employment

Company:

Name and Title of Person Contacted: 

Telephone Number: Date: 

Source of Telephone Number: 

Date of Employment: Position:

Probability of Continued Employment: 

Salary: 

Probability of continued bonus and/or overtime is likely to continue:

ADDITIONAL INFORMATION VERIFIED

Signature of Person Receiving Verification Date and Time

WARNING: Knowingly and willingly making a false or fraudulent statement to any department of the United 

States Government is a felony punishable by fine and imprisonment (Title 18, Section 1001, U.S. Code)