Determining your monthly income is an important step on the path to financing a mobile home. When you apply for financing – your income is one of the most important factors to getting approved. So, understanding how lenders calculate your monthly income is critical. Here’s a step-by-step guide to help you determine your monthly income for a mobile home loan application.
Gather Your Income Documents
If you’re a W-2 worker – start by collecting your paystubs. Select your MOST RECENT pay stubs and make sure you have 30 days’ worth. If you’re paid weekly, that means your last 4 stubs. If you’re paid biweekly, that means your last 2 stubs.
If you’re a 1099 worker or own your own business – things are a bit trickier. You MUST have 2 years of tax returns – gather your 2 most recent tax returns (specifically Schedule C – Profit or Loss from Business).
Calculate Your Gross Monthly Income
Use our income calculator to easily calculate your gross monthly income – that’s your income before taxes if you’re a W2 worker.
If you’re a 1099 worker or own your own business – find the net income, for your most recent 2 tax returns, on your Schedule C (Profit or Loss from Business) form – line 31. Take the two net income amounts – add them together and then divide them by 24. For example, if your net income (from line 31 on Schedule C) for 2023 was $30,000 and 2022 was $21,000 – take $30,000 + $21,000 = $51,000 divided by 24. The result is $2,125 per month.
Include Other Sources of Income
If you earn Social Security, or SSI or VA disability or a pension or court ordered child support – or any other PERMANENT, documentable income – then add that to your monthly income. Permanent income does NOT include unemployment or workmen’s compensation, or short term disability, etc.
Prepare Your Documentation
Organize your income documents and be prepared to provide them to your lender during the loan application process. This will help expedite the approval process.
Seek Professional Advice
If you’re unsure about how to calculate your income or navigate the loan application process, contact us here at Midwest Mobile Home Loans – we’ll help!
Calculating your monthly income for a mobile home loan is an important step in the loan application process. By getting a sense of your income and understanding your financial situation, you can increase your chances of qualifying for a loan and achieving your goal of owning a mobile home.
