The documentation in the loan file should support the borrower’s ability to repay the loan by establishing stability of income. Stable employment does not necessarily mean the borrower must have been at the same employer, in the same job, for at least two years. Each borrower’s situation is different. This course will identify several examples of stable employment, methods to document employment and income to meet program guidelines, and the most common calculations for establishing acceptable qualifying income for a borrower. There is a paystub example emphasizing the pertinent sections to review for performing the proper income calculations to qualify a borrower for the loan. The math for the monthly housing expense to income ratio and the total debt-to-income is presented along with an example to apply the concepts. Finally, self-employment income details are explained along with a list of the typical documents needed to establish stability of income.