Income Calculator Frequently Asked Questions

Yes. Lenders are eligible to receive rep & warrant relief for the accuracy of the income amount calculated by Income Calculator. If you are using a TSP’s integration to Income Calculator, you should understand that although the data extraction/retrieval technology used by TSPs has historically produced very accurate results, lenders remain responsible for the integrity of the data provided to Income Calculator by the TSP or entered by the originator, and for identifying any contradictory and conflicting information that may impact the amount of qualifying income provided by Income Calculator. 

Lenders should ensure the data submitted to Income Calculator is accurate and complete.

If the loan file contains information that contradicts or conflicts with the data used in the Income Calculator evaluation, the lender must investigate and resolve those conflicts. For example, if the borrower’s Partnership business returns indicate the business was started in 2022 and the employment start date on the loan application is March 1, 2016, the lender should determine the correct employment start date, as it may impact the qualifying income amount. Lenders are responsible for the integrity of the data used by Income Calculator.

Income Calculator and any applicable rep & warrant relief is available for all conventional loans delivered to Fannie Mae, including: all loan purposes, all occupancy types, all loan-to-value (LTV) ratios, all property types, and all underwriting methods. Income Calculator was designed for conventional, conforming loans eligible for delivery to Fannie Mae. Originators may use Income Calculator for other purposes without rep & warrant relief. Lenders should direct questions regarding Fannie Mae rep & warrant relief to their Fannie Mae account team or to [email protected].

Contact your TSP to make any necessary data corrections, and resubmit the evaluation. Missing or inaccurate data will void any rep & warrant relief.

Yes, Income Calculator offers rep & warrant relief for the income calculation for all evaluations containing complete and accurate data. Import files created by authorized TSPs will not include all the data required by Income Calculator, such as the employment start date. Users who leverage TSP import files must manually enter any missing data on the Income Calculator web interface to obtain a valid response. 

Income Calculator does not offer rep & warrant relief for data integrity, even when the import file created by the authorized TSP contains data sourced from IRS-provided tax return transcripts.

The lender must meet the requirements described in the Selling Guide, which include: 

• Ensuring the information submitted to Income Calculator is accurate and complete, including investigation of any contradictory or conflicting information between the tax return documents and the TSP submission data, the data entered in Income Calculator, or any other file documentation provided by the borrower.
• Confirming the amount of self-employment, business ownership, or rental income entered in DU (if any) is not more than the amount of income calculated by Income Calculator.
• Retaining a copy of the Income Calculator Findings Report in the loan file. Note: Income Calculator evaluations are performed at the business/borrower or rental property level, not at the loan level. You may need multiple Income Calculator evaluations for a loan file. 

In addition, the last Income Calculator request should contain the delivery DU Casefile ID, and the originator must ensure the Uniform Residential Loan Application (URLA) correctly and separately identifies each business and rental property. Originators should not commingle multiple business income sources or rental properties on the URLA.

In the web interface, use the ‘Desktop Underwriter’ screen to associate the DU Casefile ID that will be used for loan delivery. When the DU Casefile ID is entered in the web interface, the five- or nine-digit ZIP Code of the borrower’s current residence must be provided. In addition, for a self-employed or business owner evaluation, the Borrower Employment Start Date from the DU submission must also be provided. For a rental property evaluation, the rental property ZIP Code from the DU submission must also be provided. Users will be locked out after 10 unsuccessful attempts to associate the DU Casefile ID to an Income Calculator submission.

Note: If a nine-digit ZIP Code is provided to DU, the full nine-digit ZIP Code must be provided in Income Calculator to complete the association. In addition, any self-employment or business ownership income submitted to DU must contain a non-zero income amount. 

For TSP submissions, contact your TSP for guidance.

Yes, DU displays messages confirming eligibility for Income Calculator rep & warrant relief. A separate FAQ document is available to provide additional guidance related to this functionality.

No. To retain rep & warrant relief, originators must ensure the amount of self-employment, business ownership, or rental property income entered in DU (if any) is not more than the amount of income calculated by Income Calculator.

In the web interface, use the ‘trashcan’ icon on the ‘Desktop Underwriter’ screen to remove a DU Casefile ID association. 

For TSP submissions, contact your TSP for guidance.

Each Income Calculator ID can have only one associated DU Casefile ID. However, a DU Casefile ID can have multiple Income Calculator IDs associated to it. Borrowers with multiple self-employment, business ownership, or rental property incomes require multiple Income Calculator submissions. The same DU Casefile ID should be used for each Income Calculator submission to ensure appropriate rep and warrant relief.

Once you have confirmed the self-employment or business ownership income meets the Selling Guide requirements for exclusion, do not enter the tax return data for that income into the web interface. If the tax return data for that income has already been entered, use the ‘trashcan’ icon on the ‘Desktop Underwriter’ screen to remove any DU Casefile ID association. 

For TSP submissions, contact your TSP for guidance.

Yes. Income Calculator provides a response based on the data entered. Fannie Mae offers rep & warrant relief for the accuracy of the income calculation provided all information submitted is accurate and complete, a copy of the Findings Report is retained in the loan file, and the amount of the income used in qualifying is no more than the amount calculated by Income Calculator.

Yes. The additional data, such as extraordinary one-time expense amounts or the lender’s indication that a short-term debt is a line of credit or rolls over regularly, can be included as part of the data provided to Income Calculator without impacting a loan’s eligibility for rep & warrant relief. If this data is updated, the originator should resubmit to Income Calculator.

All MIs are aware of Income Calculator, and several have offered rescission relief. If an MI rescinds mortgage insurance coverage, the lender may be subject to a repurchase request or repurchase alternative. Originators should confirm the status of recission relief with their preferred MI provider(s) and determine the effects on any underwriting delegation.

Yes. The lender’s QC process should include confirming: 

• The information submitted to Income Calculator is accurate and complete, including investigation of any contradictory or conflicting information between the tax return documents and the TSP submission data or entered data;
• The amount of self-employment, business ownership, or rental property income entered in DU (if any) is not more than the amount of income calculated by Income Calculator;
• The self-employment, business ownership, or rental property information entered in DU is consistent with the Income Calculator Findings Report, including the employment start date and separate identification of each business;
• A copy of the Income Calculator Findings Report is retained in the loan file;
• Any conditions or documentation required by the messages in the Income Calculator Findings Report are retained in the loan file; and
• The loan is free from misrepresentation or fraud. Income Calculator may generate data integrity messages in its Findings Report but is not designed as a fraud detection tool.

Income Calculator is not like other available tools that determine if lender-provided income amounts are (or are not) eligible for rep & warrant relief. The qualifying income amount returned in the Income Calculator Findings Report is eligible for rep & warrant relief if the lender meets the requirements described in the Selling Guide.

The DU validation service retrieves tax transcript data produced by the IRS from authorized vendors, offering rep & warrant relief for its calculation and for data integrity. Income Calculator offers rep & warrant relief only for the calculation, not for data integrity, because its calculation uses borrower-provided or user-imported tax data. 

The DU Findings Report messages generated are different for D1C than for Income Calculator.

There are several differences between Income Calculator and DU validation service, which could cause differing income amounts, notably: 

• Some of the tax return data commonly used in self-employment and rental income evaluation is not available from the tax transcript. The transcript is only a portion of the full tax return data. DU validation service, which uses the tax transcript, may return a lower qualifying income amount than Income Calculator, which requires data from the tax returns.
• DU validation service always uses two years of tax return data.
• DU validation service evaluates only Sole Proprietor (Schedule C) businesses.
• DU validation service cannot evaluate scenarios where the borrower has Partnership or S-Corporation businesses. 

Income Calculator will generate a message in its Findings Report when Income Calculator determines the qualifying income amount would match DU validation service’s qualifying income amount, in case the originator wants to request DU validation service processing to obtain the additional rep & warrant relief. If the loan qualifies using the DU validation service income calculation, the loan is eligible for not only rep & warrant relief on the income calculation, but also on the integrity of the data.

Income Calculator attempts to minimize the amount of data entered by the user. By entering the data from Form 1040/K-1 for the current year, then the prior year, Income Calculator can determine if the business tax returns can be waived, potentially eliminating additional data entry.

Yes. When two years of tax return data is provided, Income Calculator will determine if the borrower’s self-employment or business ownership income is increasing, level, or declining. Declining income will be averaged over 12 months, and a message will appear in the Findings Report instructing the lender that the loan file must contain documentation that supports the borrower's income has stabilized if it is to be used for loan qualification.

Yes. When business returns are provided, Income Calculator will review the distributions and calculate the Quick Ratio and the Current Ratio in an attempt to confirm sufficient business liquidity. 

The Selling Guide permits lenders to “use discretion in selecting the method to confirm that the business has adequate liquidity to support the withdrawal of earnings.” Lenders have the option of instructing Income Calculator that they have made (or can make) this confirmation outside of Income Calculator. If Income Calculator cannot confirm sufficient liquidity using its internal calculations, and the lender’s confirmation will be relied upon, a message will appear in the Findings Report instructing the lender that the loan file must contain the lender’s own documentation that supports the lender’s liquidity analysis.

Yes. Income Calculator evaluates Form 8825 rental income as self-employment income. Rental properties are evaluated in total, not on one-by-one basis as they are when reported on Schedule E, Part 1. Positive Form 8825 rental income amounts are included as qualifying income. Rental loss amounts are deducted from qualifying income, not netted against Principal, Interest, Tax, Insurance and Association Dues (PITIA) amounts.

Yes. Income Calculator will use the employment start date, DU messages (if a DU Casefile ID is provided), and K-1 rental data to attempt to determine eligibility for one year tax return documentation. If Income Calculator determines two years of tax returns are required, Income Calculator will return a warning message in its Findings Report, and no qualifying income amount will be provided.

Income Calculator evaluates whatever tax return data is provided by your TSP or is entered in the web interface. Refer to the Fannie Mae Selling Guide to determine the number of years of personal and business federal tax returns required.

Yes. Income Calculator will require two years of personal tax returns (including applicable K-1s) for this evaluation. Income Calculator will determine if the business income is increasing and will return a message in its Findings Report that the lender must confirm the borrower is using his or her own personal funds to pay the down payment and closing costs and satisfy applicable reserve requirements.

Yes. Originators should enter all available W-2 data or provide their TSPs all available W-2s.

Yes. Separate submissions are required for each self-employment, business ownership, or rental property income. Each submission should also have a DU Casefile ID associated prior to loan delivery. Check with your TSP to understand if separate submissions will automatically be made or if you need to provide instructions for each submission. 

Helpful Hint: In the web interface, the ‘Clone Evaluation’ option on the ‘Start’ screen may be used to minimize the amount of data entry needed for the separate evaluations.

Yes. Separate submissions are required for each self-employment/business ownership income. Each submission should also have a DU Casefile ID associated prior to loan delivery. 

Helpful Hint: In the web interface, the ‘Clone Evaluation’ option on the ‘Start’ screen may be used to minimize the amount of data entry needed for the second borrower. 

If you are using a TSP’s integration to Income Calculator, check with your TSP to understand if two submissions will automatically be made or if you need to provide instructions for each submission.

No. Separate submissions are not required for each borrower who jointly owns rental property. Rental income may be associated with either borrower.

Yes. However, the borrower’s individual (personal) tax return(s) must reflect the same tax year(s) as the business tax return(s). For example, if two years of returns are required and personal returns are provided for tax years 2025 and 2024, then business returns must also be provided for tax years 2025 and, if applicable, 2024.

Yes. Originators must ensure the data submitted to Income Calculator is accurate, complete, and reflects the data the borrower submitted to the IRS, including any amendments.

Yes. Users must attest that the eligibility criteria outlined in the Fannie Mae Selling Guide have been met and Income Calculator will generate a related documentation message in its Findings Report.

No. Income Calculator does not collect the borrower’s filing status.

Yes. Originators should use the most recently filed complete federal income tax returns for loan underwriting. If a borrower’s business has issued the borrower a W-2 but the borrower has not completed their tax returns for that business and/or has not completed their personal tax returns, the W-2 data (by itself) should not be submitted to Income Calculator.

No. These numbers are not intended to match; they are provided to help you track resubmissions between the two services, DU and Income Calculator.

As a best practice, Fannie Mae recommends that the DU submission count on the Income Calculator Findings report match the last DU submission, but we do not require a match. For example, you may deliver the loan to Fannie Mae with submission #5 being the most recent DU submission, and the Income Calculator Findings Report message showing DU submission #3. In this case, you would need to know that DU submissions #4 and #5 had no changes related to income, loan terms, the loan application date, or any other data retrieved from DU by Income Calculator. The DU submission count is provided as a courtesy in the Income Calculator Findings Report to help you track resubmissions between the two services, DU and Income Calculator.

No. Submissions made using a TSP cannot be managed on the Fannie Mae web interface. Contact your TSP to manage your submission.

If a DU Casefile ID has been provided, Income Calculator data will be archived when the DU data is archived. If no DU Casefile ID has been provided, Income Calculator data will be archived after 180 days of inactivity.

Contact your TSP to correct any tax return data extraction mistakes. Otherwise, tax return data inputs cannot be overridden.

Income Calculator is not like other available tools that enable users to override tax return data to comply with Selling Guide requirements. Income Calculator determines what tax return data is used in its evaluation based on optional, supplemental data provided by the user. Your TSP can show you how to provide this optional, supplemental data to ensure the borrower’s income is maximized.

If customers require non-technical support from Fannie Mae, contact us via email at [email protected]

If customers require technical support from Fannie Mae support, contact the Technology Support Center at 1-800-2FANNIE (press 1 then 1).

No, user credentials are not required to use Income Calculator. This enables Fannie Mae to extend the reach of Income Calculator to a broad range of mortgage professionals. 

Income Calculator intentionally does not collect the borrower’s name, borrower’s address, Social Security number, business address, business Employer Identification Number (EIN), or any other non-public personal information (NPI). Users must successfully answer a challenge question to access previously submitted data. In addition, there are options for users to ‘Lock’ and/or ‘Hide’ their submission data.

Income Calculator provides help icons that will assist in both definition and navigation. Some help icons contain Frequently Asked Questions and additional links to the Fannie Mae Selling Guide designed to support improved understanding of the requested data, system actions, and Fannie Mae policy.

Under the ‘Existing Evaluation’ header on the ‘Start’ page, enter the Income Calculator ID and select the ‘Search Existing Evaluation’ button. Users will be prompted to answer a challenge question to complete the search.

No. Users should enter the data exactly as it appears on the tax return forms. Income Calculator will determine the correct borrower/business income amount as other information is gathered.

Select the radio button below the data entry box that states, ‘There is no amount on this line.’ Do not enter $0.00.

Income Calculator screens are dynamically generated. As information is provided, additional screens may be displayed or disabled. To ensure all screens are correctly displayed, ensure all data has been input correctly.

No. The Fannie Mae Selling Guide requires verification of self-employment or business ownership income using signed federal income tax returns. 

Lenders using signed federal income tax returns that were filed with the IRS for income documentation must ensure the tax returns are complete, including all applicable schedules and attachments.

A pre-defined data file can be uploaded to Income Calculator for evaluation. Income Calculator does not support uploading of a tax return PDF. An import file can be obtained from the ‘Findings Report’ or ‘Start’ screens. Certain Technology Service Providers offer creation of an import file as a service.

No. Income Calculator’s data integrity messages are intended to help users identify potential data input errors. Users are encouraged to review their data input, as missing or inaccurate data will void any rep & warrant relief. If the user is confident that correct data has been provided to Income Calculator, no action is needed. The lender may choose to provide additional information regarding input data in their underwriting analysis and may provide additional loan file documentation at their discretion. Note: Income Calculator is not designed as a fraud detection tool.

Approved TSPs use a variety of methods to obtain tax data. Fully integrated TSPs send a request to Income Calculator and relay the Income Calculator Findings Report/response to the requesting customer. TSPs may also create files containing tax data that users may import on the Income Calculator web interface.

The list of authorized TSPs can be found on our website. Fannie Mae has developed a structured process for determining TSP eligibility and prioritizing integrations.

No. Fannie Mae does not collect the borrower’s name, borrower’s address, Social Security number, business address, business EIN, or any other NPI from the TSP. A reference name (which may be the business name or any other string of characters) may be optionally provided as a convenience to the user in reconciling the Findings Report to the loan file.

Customers must execute an agreement with an approved TSP and execute Fannie Mae’s Income Calculator Software License Agreement. Interested customers should begin with their TSP. Fannie Mae and the TSP will coordinate originator access. The standard sign-up process takes approximately two weeks. Customer testing is not required. 

Basic process 

Step 1: Customer executes contract with approved TSP. 

Step 2: TSP notifies Fannie Mae of customer interest. 

Step 3: Fannie Mae sends Income Calculator Software License Agreement to customer. 

Step 4: Customer executes Fannie Mae Income Calculator Software License Agreement. 

Step 5: TSP and Fannie Mae coordinate to provide customer access. 

Step 6: TSP notifies customer and schedules training (as needed).

Yes, the rep & warrant relief offered by Income Calculator requires your submission to include complete and accurate data, including data that is not found on the tax return or tax transcript, such as the employment start date. Users who leverage TSP import files must manually enter any missing data on the Income Calculator web interface to obtain a valid response.

Yes. If you currently collect and store detailed tax return data, you may be a candidate for direct integration with Income Calculator. Contact your Fannie Mae account team for more information.

Fannie Mae offers rep & warrant relief only for incomes submitted to Income Calculator where the borrower is self-employed (has 25% or more business ownership), where the borrower’s business ownership is less than 25%, or where the borrower has rental income from Schedule E, Part I. The TSP’s response will contain a unique 7-character identifier that starts with letter “D” (for example, D123ABC) for each Income Calculator evaluation.

Yes. Originators should work with their TSP to understand how to manually match Schedule Cs. Originators must ensure the Schedule Cs represent the same business and should collect supporting documentation if needed.

Yes. Fannie Mae requires TSPs to make all data from the Income Calculator Findings Report available to the originator.

Many TSPs have quality control processes that utilize human review for some transactions. Your TSP can provide hours of availability.

Yes. Income Calculator is independent from DU. The Income Calculator ID can be associated (or disassociated) from a DU Casefile ID by the requestor. The DU Casefile ID that will be included in the loan delivered to Fannie Mae should be entered into Income Calculator prior to delivery. A copy of the Income Calculator Findings Report should be retained in the file and can be made available to participants in the origination process. Customers requiring support with DU Casefile ID association may contact us via email at [email protected].

The investor may not be delivering the loan to Fannie Mae or may have more restrictive internal policies regarding income calculation and documentation. It is the investor’s responsibility to determine the amount of qualifying income they will consider during loan underwriting.

Yes. See the Selling Guide for any questions about rep & warrant relief.