Desperate for more qualifying income? Do you go flipping the pages of the tax return to see if there is more income, anything at all, you didn’t notice the first time?
Ah! Schedule SE has self-employed earnings you did not use yet. There is no Schedule C so this must be something else. Can you add it?
Yes, self-employment income on Schedule SE comes from Schedule C, and Schedule F (Farm). But it also is generated when your borrower has pass-through income from an LLC or Partnership.
You should already have picked up the cashflow from those entities, either by
- using the K-1 actual cashflow to the partner/owner or
- factoring into the personal analysis what those other entities can afford to pay.
Good try though!