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Form 91 is used to calculate and document the calculation of the Borrower's self-employed income.

Also known as GRM, the gross rent multiplier approach is one of the simplest ways to determine the fair market value of a property. To calculate GRM, simply divide the current property market value or purchase price by the gross annual rental income: Gross Rent Multiplier = Property Price or Value / Gross Rental Income.

Net rental income calculation requirements 75% of the gross monthly rent or gross monthly market rent. The 25% adjustment is made to compensate for vacancies, operating and maintenance costs and any other unexpected expenses. + Mortgage interest paid to banks, etc.

Method for Calculating the Income When Schedule E is used to calculate qualifying rental income, the lender must add back any listed depreciation, interest, homeowners' association dues, taxes, or insurance expenses to the borrower's cash flow.

Form 92 is used to calculate and document the calculation of the Borrower's net rental income from Schedule E.

If the renter has a tenant, lenders will take a percentage of the income that's outlined on a lease and use that to determine projected rental income. They usually use 75% of your total reported income — 25% is subtracted to account for potential vacancies and ongoing maintenance.

Lease Agreements or Form 1007 or Form 1025: When current lease agreements or market rents reported on Form 1007 or Form 1025 are used, the lender must calculate the rental income by multiplying the gross monthly rent(s) by 75%. (This is referred to as “Monthly Market Rent” on the Form 1007.)

Form 92 is used to calculate and document the calculation of the Borrower's net rental income from Schedule E. Click the Download button above to view Form 92.