Fill - Free fillable Fannie Mae Cash Flow Analysis PDF form

Please use the following quick reference guide to assist you in completing Fannie Mae Form 1084. It provides suggested

guidance only and does not replace Fannie Mae instructions or applicable guidelines.

Calculator and Quick Reference Guide:

Fannie Mae Cash Flow Analysis

IRS Form 1040 – Individual Income Tax Return 2020 2019 NOTES

1 W-2 Income from Self-Employment +

*Only add back the eligible

“Other” deductions, such

as Amortization or

Casualty Loss.

2 Schedule B – Interest and Ordinary Dividends

a. Interest Income from Self-Employment (Line 1) +

b. Dividends from Self-Employment (Line 5) +

3 Schedule C – Prot or Loss from Business: Sole Proprietorship

a. Net Prot or Loss (Line 31) +/–

b. Nonrecurring Other (Income) Loss/Expenses (Line 6) +/–

c. Depletion (Line 12) +

d. Depreciation (Line 13) +

e. Non-deductible Meals and Entertainment Expenses

(Line 24b)

–

f. Business Use of Home (Line 30, Check applicable

guidelines)

g. Amortization/Casualty Loss (Only add back Amort/CL -

Review Schedule C Page 2, Part V*)

Business Miles (Page 2, Part IV, Line 44 OR Related 4562,

Line 30)

X Depreciation Rate (2020 - 27¢; 2019 - 26¢)

= Total Mileage Depreciation +

Subtotal Schedule C =

4 Schedule D – Capital Gains and Losses

a. Recurring Capital Gains (from Self-Employment) +

5 Schedule E – Supplemental Income and Loss

Note: A lender may use Fannie Mae Rental Income Worksheets (Form 1037 or Form 1038) or  comparable

form to calculate individual rental income (loss) reported on Schedule E.

a. Royalties Received (Line 4) +

b. Total Expenses (Line 20) –

c. Depletion (Line 18) +

Subtotal Schedule E =

6 Schedule F – Prot or Loss from Farming

a. Net Farm Prot or Loss (Line 34) +/–

b. Non-Tax Portion Ongoing Coop and CCC Payments

(Line 3, 4, 6( -b))

+/–

c. Nonrecurring Other (Income) or Loss (Lines 5c & 8) +/–

d. Depreciation (Line 14) +

e. Amortization/Casualty Loss/Depletion (Line 32*) +

f. Business Use of Home (Line 32, Check applicable guidelines) +

Subtotal Schedule F =

Note: IRS Form 4797 (Sales of Business Property) is not included on this worksheet due to its infrequent

use. If applicable,  lender may include analysis of the sale and related recurring capital gains.

Page 1 of 4

Borrower(s) Name(s)

Property Address

Loan Number

For full functionality, download and save PDF rst before entering data.

Please download before each calculation as calculators are updated periodically.

Note: For entries with the marker (+/–) type  ‘-‘ for entering  negative amount. Example: –12,345.67

This calculator can be found at https://EnactMI.com/self-employed-borrower-calculators

0.27

0.26

0.00

Notes:

IRS Form 1065 - Partnership Income 2020 2019 NOTES

7 Schedule K-1 Form 1065 – Partner’s Share of Income

*Review Line 19 for 

distribution

**Only add back

the eligible “Other”

deductions, such as

Amortization or Casualty

Loss.

***Follow specic

investor guidelines.

Adjustments may not

be required if there is

evidence these roll over

regularly, it is veried

to be  line of credit

or if the business has

sucient assets to

cover the liability.

a. Ordinary Income/Loss (Line 1)* +/–

b. Net Rental Real Estate; Other Net Income (Loss) (Lines 2,

3)*

+/–

c. Guaranteed Payments to Partner (Line 4c) +

8 Form 1065 - Adjustments to Business Cash Flow

a. Ordinary (Income) Loss from Other Partnerships (Line 4) +/–

b. Nonrecurring Other (Income) or Loss (Lines 5, 6 & 7) +/–

c. Depreciation (Line 16c, including 8825 Line 14) +

d. Depletion (Line 17) +

e. Amortization/Casualty (Review Attachment Related to

(Line 20**)

f. Mortgages or Notes Payable in Less than 1 Year

(Schedule L, Line 16d***)

–

g. Non-deductible Travel and Entertainment Expenses

(Schedule M-1, Line 4b)

–

Subtotal =

Percent Ownership (From Schedule K-1) % %

Total Form 1065 =

Total Partnership Income

IRS Form 1120S – S Corporation Earnings 2020 2019 NOTES

9 Schedule K-1 Form 1120S – Shareholder’s Share of Income

*Review Line 16d for

 distribution

**Only add back

the eligible “Other”

deductions, such as

Amortization or Casualty

Loss.

***Follow specic

investor guidelines.

Adjustments may not

be required if there is

evidence these roll over

regularly, it is veried

to be  line of credit

or if the business has

sucient assets to

cover the liability.

a. Ordinary Income (Loss) (Line 1)* +/–

b. Net Rental Real Estate; Other Net Rental Income (Loss)

(Lines 2, 3)*

+/–

10 Form 1120S - Adjustments to Business Cash Flow

a. Nonrecurring Other (Income) Loss (Lines 4, 5) +/–

b. Depreciation (Line 14, including 8825 Line 14) +

c. Depletion (Line 15) +

d. Amortization/Casualty Loss (Review Attachment Related

to Line 19**)

e. Mortgages or Notes Payable in Less than 1 Year

(Schedule L, Line 17d***)

–

f. Non-deductible Travel and Entertainment Expenses

(Schedule M-1, Line 3b)

–

Subtotal =

Percent Ownership (From Schedule K-1) % %

Total Form 1120S =

Total S-Corp Income

Partnership or S Corporation

A self-employed borrower’s share of Partnership or S Corporation earnings may be considered provided that:

The borrower can document ownership share (for example, the Schedule K-1); and

The K-1 reflects  documented, stable history of receiving cash distributions of income consistent with the level of business

income used to qualify; or lenders must verify the business has adequate liquidity to support the withdrawal of earnings.

See liquidity calculators to aid in conrmation of adequate liquidity.

Note: See additional information on the fourth page of this calculator.

Page 2 of 4

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IRS Form 1120 – Regular Corporation 2020 2019 NOTES

Corporation earnings may only be used when the borrower(s) own 100% of the corporation.

11 Form 1120 – Regular Corporation

*Only add back

the eligible “Other”

deductions, such as

Amortization or

Casualty Loss.

**Follow specic

investor guidelines.

Adjustments may not

be required if there is

evidence these roll over

regularly, it is veried

to be  line of credit

or if the business has

sucient assets to

cover the liability.

a. Taxable Income (Line 30) +/–

b. Total Tax (Line 31) –

c. Nonrecurring (Gains) Losses (Lines 8, 9) +/–

d. Nonrecurring Other (Income) Loss (Line 10) +/–

e. Depreciation (Line 20) +

f. Depletion (Line 21) +

g. Amortization/Casualty Loss (Review Attachment Related

to Line 26*)

h. Net Operating Loss and Special Deductions (Line 29c) +

i. Mortgages or Notes Payable in Less than 1 Year

(Schedule L, Line 17d**)

–

j. Non-deductible Travel and Entertainment Expenses

(Schedule M-1, Line 5c)

–

Subtotal =

Less: Dividends Paid to Borrower

(Check Form 1040, Schedule B)

–

Total Form 1120 =

Grand Total ________________ ________________

Number of Months (enter number) ________________ ________________

Monthly Total ________________ ________________

Two Year Average

This reference sheet is suggested guidance and does not replace Fannie Mae instructions or applicable guidelines. Please check

with your own legal advisors for interpretations of legal and compliance principles applicable to your business.

________________

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Page 3 of 4

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Guidance for documenting business liquidity

If the Schedule K-1 reflects  documented, stable history of receiving cash distributions of income from the business

consistent with the level of business income being used to qualify, then no further documentation of access to income or

adequate business liquidity is required.

If the Schedule K-1 does not reflect  documented, stable history of receiving cash distributions of income from the business

consistent with the level of business income being used to qualify, then the lender must conrm adequate business liquidity.

The lender may use discretion in selecting the method to conrm that the business has adequate liquidity to support the

withdrawal of earnings. When business tax returns are provided, for example, the lender may calculate  ratio using  generally

accepted formul that measures business liquidity by deriving the proportion of current assets available to meet current

liabilities.

Refer to the Enact Quick or Current Ratio Calculators for additional guidance.

Year to Date Prot and Loss Statement

When using or evaluating prot and loss statements, always consult all applicable guidelines, including lender, investor, GSE and,

where applicable, federally mandated ability to repay requirements. Generally, the lender may use  prot and loss statement—

audited or unaudited—for  self–employed borrower’s business only to support its determination of the stability or continuance

of the borrower’s income. A typical prot and loss statement has  format similar to IRS Form 1040, Schedule C. Allowable

addbacks include depreciation, depletion and other non–cash expenses as identied above.

Year–to–Date Prot and Loss Statement

Salary/Draw to Individual _________________

Net Prot _________________ _________________% Ownership = _________________

Total Allowable Addbacks _________________ _________________% Ownership = _________________

Year–to–Date Total _________________

Refer to Enact COVID P&L Review & Business Income Stability worksheet while COVID-19 underwriting policies are eective.

11630342.0222

Enact mortgage insurers include Enact Mortgage Insurance Corporation and

Enact Mortgage Insurance Corporation of North Carolina.

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