“Mortgage Math & Knowledge Challenge Test”

The borrower earns $22.00 per hour and works a 40-hour work week. What is his monthly base pay?

2.  What is the borrower’s monthly qualifying income if, the borrower earns $15.50 per hour and works different hours each month? The Verification of Employment shows earnings of:

The Verification of Employment shows earnings of:

2021 From: Jan1st to June 30th ( 6 months)                                         $16,120.00
2020 Income                                                                                                      $27,040.00
2019 Income                                                                                                       $23,920.00

What is the borrower’s monthly income if the borrower is paid $2,200 bi-weekly?

A borrower is paid $3,125 bi-monthly.  What is his monthly qualifying income?

The borrower is paid $800 per week, based on a 40-hour work week, and receives overtime at a rate of time and a half.  What is his hourly rate of overtime pay?

Why can’t you count overtime for 2019 in this situation, if the Borrower’s VOE overtime pay
shows earnings for:

________________________________________________

2021  Overtime = Jan 1st to June 30th (6 months)         $ 3,850

2020 Overtime =                                                                     $ 7,700

2019 Overtime =                                                                     $ 9,800

Mr. Frank annually earns 100% commission. What is his monthly qualifying income?

The Facts:
Year-to-Date through end of Sep 2021                               $55,000
2020 Commissions Earned                                                   $92,750
2019 Commissions Earned                                                    $98,250

Mr. Williams annually earns 100% in commissions. What is his monthly qualifying income?

The Facts:

His Verification of Employment is backed up by W-2s and IRS 1040 Individual Income and Tax Returns for 2017 and 2018.

Year-to-Date through June 2019      $ 51,000  (6mths)
2018 Commissions Earned                $ 98,750
2017 Commissions Earned                $ 95,250
____________________________________________

Mr. Smith earned $96,500 in commissions in 2017, but in 2018 his commissions declined to $76,500, however, YTD 2019 commissions have remained stable?

What is his monthly qualifying income?

Year-to-Date through end of Sep. 2019                            $  57,375

2018 Commissions Earned                                                 $  76,500

2017 Commissions Earned                                                 $  96,500

A borrower receives $3,500 per month in disability income, and it is non-taxable. Based on Fannie Mae’s gross-up rate, how much monthly income may be used to qualify the borrower?

The borrower earns $35.00 per hour and works a 40-hour week. What is his monthly base pay?

What is the Borrower’s qualifying monthly income if the borrower earns $18.50 per hour and works different hours each month?

The Verification of Employment shows earnings of:

YTD 2021  From:  Jan1st to June 30^th                     $17,316.00

2020 Income                                                                  $32,632.00

2019 Income                                                                  $29,520.00

What is the borrower’s monthly income if the borrower is paid $2,950 bi-weekly?

A. $5,900.00
B. $5995.00
C. $6,391.67

A borrower receives $27.50 in base pay and works various hours and receives time-and-a-half overtime occasionally. If the borrower did receive overtime, what would their overtime rate be?

For the last 3 years, the borrower has been paid $750 per week base pay, on a 40-hour work week, and receives 15 hours overtime every week and never changes. What is the monthly qualifying income?

Susan is paid a base salary of $45,000 per year, plus a commission. What is her monthly qualifying income?

THE FACTS:

Her Verification of Employment is backed up by W-2s and IRS 1040 Individual Income and Tax Returns for 2020 and 2019.

Year-to-Date through Sep 2021 2020 Commissions Earned                    $70,000

2020 Commissions Earned                                                                               $98,750

2019 Commissions Earned                                                                               $95,250

For income qualifying purposes, what is the amount of monthly overtime pay that can be added to the borrower’s base pay?

Facts:
2021 Overtime Jan 1st to June 30th      (6 months) = $ 3,850
2020 Overtime = $ 7,700
2019 Overtime = $ 9,800

A. $715.00
B. $641.67
C. $816.67

For the last 3 years, the borrower has been paid $1,300 bi-weekly, on a 40-hour work week, and receives 15 hours overtime every week. You will need to calculate base pay and overtime. What is the total monthly qualifying income?

On June 30th, 2021, Mr. Smith and Mrs. Smith apply jointly for a home loan. What is their combined qualifying income? Mrs. Smith also works a part-time job as a waitress which she has worked for 18 mos. She did not work any part-time jobs prior to this one.

Mr. Smith

Current Monthly Income                               $     3,208.33     

W-2    for 2020                                                   $    35,000

W-2    for 2019                                                    $    32,000                            

Mrs. Smith

Current Monthly Income                                         $     2,333

W-2 for 2020 Primary job                                           28,000
W-2 for 2019                                                                  28,000

YTD 2021 Part time 6 mos.                                          $6,000

If Mrs. Smith had another part-time job for 2 years before switching to her current part-time job as a waitress, with only a 28-day gap between her former part-time job and her current part-time job, what would be the monthly amount that could be added to her income?

Mrs. Smith is paid $8.00 per hour and averages about 15 hours per week.

2021 YTD  June 30th paystub                                $3,210.00
2020 W-2                                                                    $6,240.00