Freddie Mac Income Calculator
The Freddie Mac Income Calculator is the newest addition to our spectrum of options for assessing income. It’s a free, online tool that helps you calculate a variety of borrower income types with ease and confidence. Use the calculator results independently or with your Loan Product Advisor® (LPA®) loan submission to determine potential representation and warranty (R&W) relief eligibility.
Calculate Borrower Income with Precision and Speed
From common to complex scenarios, the Freddie Mac Income Calculator can help reduce loan defects and repurchase risk, save you time and increase opportunities to close more loans.
Latest Enhancement
Learn about income calculator updates that improve calculations for income from S-Corporations and Partnerships while simplifying the overall user experience.
Chief TPO Production Officer
Pennymac TPO
Vice President, Credit Risk and Underwriting
Summit Funding
Serve a Variety of Borrowers
Wage Earners
Paystubs and W-2s: Income types supported include base, bonus, overtime and commission.
Self-Employed
Tax data (returns and transcripts):
Business types supported include Sole Proprietorship (Schedule C), Partnership and S Corporation.
Coming Soon
Additional income types and more complicated income scenarios.
Training and Resources
Boost Your Efficiency, Confidence and Opportunity
Simplify how you qualify
- Enter up to five borrowers’ income data with guided steps and explanations
- Get instant results
Leave uncertainty behind
- View the Freddie Mac Income Calculator's details
- Check R&W relief eligibility indicator
More Ways to Make Home Possible
- Use the report ID in the LPA submission for R&W relief opportunity
A Spectrum of Income Assessment Solutions
Our newest offering, allowing lenders to calculate wage and self-employed income with greater ease. A free, online calculator with no login or protected personal information (PPI) required.
Use Cases:
- Wage earners – Base, bonus, overtime and commission income types from paystubs and W-2s.
- Self-Employed – Sole Proprietorship (Schedule C), S Corporation (1120S), Partnership (1065), Rental Income (Partnership and S Corp, Form 8825)
Benefits:
- Get Freddie Mac’s view of income calculation.
- Potentially reduce repurchase risk and receive representation and warranty (R&W) relief eligibility.
- Can be used prior to submitting to LPA.
- R&W results available right on the LPA Feedback Certificate in (with LPA automatic retrieval or by providing the Calculator Identification Number to LPA).
Get the most out of automation by leveraging third-party service provider data.
Use Cases:
- Payroll – Service providers offer direct connection to source data (borrower not required to log in); Credentialed access (borrower logs into their payroll provider).
- Direct Deposits – Leverage bank statement data to derive income from direct deposits.
- Self-Employment – Service providers of tax data (returns and transcripts) or borrower provided.
Benefits:
- Leveraging data instead of docs to eliminate the paper chase with borrowers.
- Save time and money.
- Potentially reduce repurchase risk and receive R&W relief eligibility.
- R&W results available right on the LPA Feedback Certificate.
Enables integrated service providers and Sellers to submit digitized data (e.g. using optical character recognition (OCR)) for paystubs and W-2s directly to the API for Freddie Mac’s view of income calculation.
The income calculation behind the API is also used for the income calculator.
Use Cases:
Wage earners – Base, bonus, overtime and commission income types from paystubs and W-2s through API integration.
Benefits:
- Get Freddie Mac’s view of income calculation.
- Can be used prior to submitting to LPA.
The information on this page is not part of, and is not a replacement or substitute for, the requirements found in the Freddie Mac Single-Family Seller/Servicer Guide and other Purchase Documents.