DTI & Income Verification - Self Employed Income Verification - Tax Returns

If the borrower selects Tax Returns, they will be prompted to manually upload their most recent two years’ worth of tax returns (e.g. 2025 and 2024). The tax returns will be sent to a third-party vendor, Ocrolus, that specializes in tax return analysis.

Tax Return Review Time Frame

• The review of the tax returns can take several business days upon receipt of the uploaded documents
• Due to tax return analysis, the borrower can help by submitting all pages of the returns, including all schedules
  • This helps the turnaround time

NOTE: Once the tax return income is calculated and finalized, it cannot be changed

Tax Return & DTI <50%

If the DTI result is less than 50%, the borrower can move on with their application

Tax Return & DTI >50%

If the DTI is still greater than 50%, the borrower has four options:

• Reduce Loan Amount – The system will let the borrower know what they need to lower it to, in order to make the deal work.
• Pay Off Debts – The borrower will be able to select liabilities to pay off. The DTI will reflect the payoff selections in real time.
• Add Income – This allows the borrower to add additional income that wasn’t considered during the prequal.
• Add Co-Borrower – They can add a co-borrower to combine incomes.

NOTE: If the above two options do not work, and the DTI is still above 50%, the loan will be denied.