Rental Income Worksheet (1038)

Calculate qualifying rental property income using Schedule E (Method A) or Lease Agreement / Form 1007/1025 (Method B).

Upload Schedule E

Upload IRS Schedule E (Form 1040) to auto-fill Method A fields. Supports PNG, JPG, WebP, or PDF.

Upload Schedule E Drop or click to upload a Schedule E image or PDF
Documentation Required

Schedule E (IRS Form 1040) OR Lease Agreement or Fannie Mae Form 1007/1025. Use Method A when Schedule E data is available from tax returns. Use Method B when qualifying based on a current lease agreement with the standard 75% vacancy/expense factor.

Select Calculation Method

Method A: Schedule E

Use tax return Schedule E data

Method B: Lease Agreement

Use lease or Form 1007/1025

Step 1 Months in Service

Number of months the property was rented during the tax year (from Schedule E fair rental days).

Step 2 Schedule E Income & Adjustments

Enter amounts from Schedule E. Green rows are added back; red rows are subtracted.

A9 Adjusted Monthly Income $0.00

Step 3 Proposed PITIA

Subtract the proposed Principal, Interest, Taxes, Insurance & Association dues for the subject property.

Net Rental Income (Method A)
$0.00

Step 1 Gross Monthly Rent

Enter the gross monthly rental income from the lease agreement or Form 1007/1025.

B2 Adjusted Monthly (Gross × 75%) $0.00

Step 2 Proposed PITIA

Subtract the proposed Principal, Interest, Taxes, Insurance & Association dues for the subject property.

Net Rental Income (Method B)
$0.00
Rental Income Guidelines

Positive result = income that can be added to qualifying income. Negative result = monthly housing expense that must be included in the borrower's liabilities. Method A uses Schedule E data with add-backs for PITIA-related expenses and depreciation. Method B applies the standard 75% factor to gross rent per Fannie Mae guidelines.