Income Documentation Requirements for Loan Modifications

For a loan modification, if you are self-employed or receive income for any source other than regular paychecks, lenders require you to prove the income. This chart shows what documents are required for all income types.

Income Source Required Documentation
Self-Employment
1. 3 months or YTD Profit and Loss Statement
a. Signed and dated
b. Include itemized expenses
c. Typed, not hand written
2. Most Recent Personal Federal Tax Return (1040)*
a. Signed and dated
b. All schedules attached
3. Most Recent Business Federal Tax Return (1120, 1120S, 1065)*
a. Signed and dated
b. All schedules attached
4. 3 months most recent (or YTD) business bank statements to match P & L submitted
* If immediate previous year's tax returns have not been filed after 4/15, must provide proof of extension

Other Earned Income (e.g., bonus, commission, fee, tips, overtime

Reliable evidence such as printouts that show this
income was earned

Rental Income

1. Active Rental Lease Agreement including
a. Property address
b. Rental amount
c. Frequency of payment
d. Effective date and expiration date
e. Tenant and landlord signatures and dates
f. Cannot expire within 60 days
2. 2 Months' cancelled checks or 2 months' bank statements reflecting receipt/deposit of rent Note: borrower must treat rent as self-employment income and follow self-employment guidelines (above) if any of the following conditions are met:
a. Landlord is partnership, LLC, or corporation; or
b. Individual borrower has more than 4 rental properties

Boarder Income or Cash Contributions

1. Non-borrower must provide proof of occupancy
(utility bill, cell phone bill, bank statement, etc.)
2. Non-borrower must be related to the borrower (spouse, parent, child, etc.)
3. 30 days' worth of paystubs of non-borrower to prove income
Note: If the non-borrower is not related to the borrower, follow boarder income guidelines above.

Alimony, Separation Maintenance and Child Support Income
*Note: Borrowers are not required to document this income.
Provide this ONLY if you wish the Servicer to consider this income

1. Copy of divorce or other court decree
2. Legal document stating the amount and duration of
the payment(s)
3. 3 months most recent bank statements and/or
cancelled checks showing receipt of payment(s)*
*Debit card statements showing the deposits for payments made through State agencies are acceptable in lieu of bank statements
and/or cancelled checks
Trust Income
1. Copy of Trust Agreement or Trustee Statement confirming the amount, frequency and duration of trust payments
2. 3 months most recent disbursement checks and/or < 3 months most recent bank statements reflecting deposit of trust amount

Death Benefit

1. Benefits statement showing amount, frequency and duration of the benefit
2. 3 months most recent bank statements reflecting deposit of benefit

 

 


Child Care / Babysitting

1. Letter from payee stating amount, frequency and duration of payments
2. 3 months most recent bank statements reflecting deposit of payment

Foster Care

1. Letter from Sponsoring Organization reflecting amount and date benefits start/end. Cannot expire within 60 days
2. 3 months bank statements showing direct deposit of benefits within last 90 days or 30 days consecutive paystub

Severance Pay / Salary

1. Copy of Severance Agreement reflecting amount, frequency and duration of benefits (start and end date). Cannot expire within 60 days
2. 3 months bank statements showing direct deposit > of benefits within last 90 days or 30 days consecutive paystubs

Disability Income / VA Benefit

1. Valid award letter dated within 90 days; OR
2. 30 days paystubs dated within the last 90 days; OR
3. 3 months most recent bank statements reflecting deposit

Unemployment and/or Welfare

1. Award letter from Employment Security Commission reflecting amount, frequency and duration of benefits (start and end date). Cannot expire within 60 days
2. 3 months most recent bank statements showing direct deposit of benefits within last 90 days or 30 days consecutive paystubs*
*Debit card statements showing the deposits for payments made through State agencies are acceptable in lieu of bank statements

Pension Income / Other Retirement Accounts

1. Valid award letter dated within 90 days; OR
2. 30 days paystubs dated within the last 90 days; OR
3. 3 months most recent bank statements reflecting deposit

Social Security

1. Valid award letter dated within 90 days; OR
2. 30 days paystubs dated within the last 90 days; OR
3. 3 months most recent bank statements reflecting deposit