Downpayment Plus 2014
Federal Home Loan Bank of Chicago
Administered by Wisconsin Partnership for Housing Development, Inc.
How to Complete the Income Calculation Workbook
“Downpayment Plus” and “DPP” are registered trademarks of the Federal Home Loan Bank of Chicago.
Table of Contents
Getting Started
Household Summary
3
6
Income Detail Entry
11
Other Income
12
Seasonal Income
13
Self Employment Income
Regular Employment (VOE)
14
15
Regular Employment (Pay Stubs)
16
Regular Employment—Additional Positions
18
Calculated Income
19
Additional Household Members
21
Finishing Up
22
Quick Resource Links
24
Contact Information
25
2
Getting Started
Go to www.wphd-dpp.org
Click on the Lenders menu and select the Resources page
3
Getting Started
From the Resources Page, click on the DPP Program Guide
Go to the last page of the guide, and open the Income Calculation Worksheet
4
Getting Started
Select “save as” to save a copy of the worksheet on your computer.
5
Household Summary
Start by selecting the Household Summary tab at the bottom of the workbook.
6
Household Summary
Enter the required information in the YELLOW cells. The WHITE cells will pre-fill based on the
information you enter.
Enter your bank
name as the
“Member”.
Enter the date of the
online reservation
submission.
Enter the primary
borrower’s name.
Enter the property
address that is being
purchased.
7
Household Summary
Enter ALL household members—name, relationship and date of birth.
Complete the YELLOW cells for each
household member. Age and income
columns will pre-fill. ALL household
members must be reflected.
8
Household Summary
For Example—
Household size and ages have
pre-filled. Income will also
pre-fill after you enter
information on the next
workbook tabs.
9
Household Summary
Begin entering income information by selecting the “HH Member 1” tab.
10
Income Detail Entry
Enter “1” to begin calculating the income for the first person listed on the Household Summary.
The person’s name will appear once you enter the corresponding number.
The “Calculated
Income” section will pre
-fill once you enter the
information in the
yellow cells on the rest
of this tab. Remember:
white cells pre-fill.
11
Other Income
List the amount and frequency (times per year) for any “other” income.
Anything not on the list can be entered in the final “income source” cell.
For example: social security income
of $160 per month is entered as a
frequency of 12 (times per year).
Notice the white cells in the “total”
column will calculate and pre-fill
once the blue cells are completed.
12
Seasonal Income
A VOE from the employer is required for seasonal income calculation.
The employer should list the expected dates of employment for the year.
Based on the VOE, enter the
number of weeks OFF WORK per
year, and select “yes” or “no”
regarding availability of
unemployment. If unemployment
is available, enter the amount and
frequency in the previous section
(“other income”).
Enter the information listed on the
VOE into the yellow cells. Notice
that the “weeks employed in
calendar year” will pre-fill, and the
white cells will calculate and pre-fill
based on the information entered.
13
Self Employment Income
Use the information on the Beneficiary Questionnaire, YTD report, and tax returns to complete
this section.
Enter current year
information based on a
current YTD income/expense
report provided by the
borrower. For “months self
employed”, round down to
the nearest month.
Enter previous year information based
on tax returns. Include all self
employment income, including income
stated on Schedule C or its equivalent.
Notice that the 12 month
projection will calculate and
pre-fill based on the
information entered in the
yellow cells.
14
Regular Employment (VOE)
For regular, year-round employment, use a VOE or paystubs in this section.
Enter the employer name,
select your verification type
(VOE, in this example), and
the hire date listed on the
VOE.
“Average hours” should be
taken directly from the VOE. If
it is left blank on the VOE, we
will use 40 as a default. If a
range is given, the highest
number is used.
If “payroll frequency” is
not listed on the VOE, use
“weekly” as a default.
If “thru date” is not listed on
the VOE, use the date the
VOE is signed at the bottom
by the employer.
Enter the required
information into the yellow
cells, based on the VOE.
Notice that the “annualized
base pay” and the “income
average” automatically
calculate and pre-fill based
on the information entered.
The higher of the two values
will be used in the total
income calculation.
15
Regular Employment (Pay Stubs)
If using paystubs, three consecutive pay stubs are required. YTD information must be reflected.
Enter the employer name,
select your verification type
(pay stubs, in this example),
and the hire date listed on the
Beneficiary Questionnaire.
Scroll down to the pay
stub section. Leave the
VOE section blank.
16
Regular Employment (Pay Stubs)
Use three consecutive pay stubs to complete the yellow cells. Start on the left with the earliest
pay stub, moving to the right with the most recent.
The payroll frequency
selected should match the
recommended frequency.
“Base Pay” includes regular
hours, vacation, holiday,
sick, and other paid time
off.
Notice that the “annualized
base pay” and the “income
average” automatically
calculate and pre-fill based
on the information entered.
The higher of the two values
will be used in the total
income calculation.
Examples of “other income” include recurring
bonuses, shift differentials,
premium pay, etc.
Enter YTD information
from the most recent pay
stub.
17
Regular Employment—Additional Positions
If more than one regular, year-round position is held, you can scroll down and enter VOE or pay
stub information for each position.
Up to four positions
can be calculated on
each tab by scrolling
down and entering
each position
separately.
18
Calculated Income
Once you have entered all income details, scroll back up to the top of the page. The “Calculated
Income” section should be filled in, pulling totals from each section completed in the “HH
Member 1” tab.
19
Calculated Income
Switch back to the Household Summary tab. The calculated income total for Household
Member 1 should appear in the “Calculated Income” column.
20
Additional Household Members
Proceed with the same steps for each household member with earned income.
Complete income for each
household member with
the corresponding “HH
Member” tab.
21
Finishing Up
A signed copy of the completed Household Summary is due with the income package, along
with a copy of each separate Household Member calculation.
Have all borrowers review the household
information prior to signing . Their
signatures certify the information is true
and accurate. Keep in mind that the
household size determines the income
limit applied.
22
Finishing Up
All income documentation must be dated within 60 days of the grant reservation date. For
detailed information regarding income guidelines and documentation, refer to the DPP Income
Calculation Guidelines found in the forms section of the DPP Program Guide.
23
Quick Resource Links
Downpayment Plus Program Guide
FHLBC DPP Resources Page
Other Program Instructions Links
WPHD Downpayment Plus Website
24
Contact Information
Wisconsin Partnership for Housing Development, Inc.
121 S. Pinckney Street, Suite 420
Madison, WI 53703
www.wphd-dpp.org
Heather Boggs and Lisa Kratz
[email protected]
P) 608.258.5560
F) 608.258.5565
25