Freddie Mac Income Calculator
The Freddie Mac Income Calculator delivers fast, accurate borrower income assessments through our free, online graphical user interface (GUI) or application programming interface (API) integration (direct or via service provider). As part of our broad spectrum of income assessment solutions with AIM, you can 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
The new Freddie Mac Income Calculator API allows a direct integration method to easily submit data, calculate income and receive potential R&W relief eligibility for wage earners, self-employed borrowers and borrowers with rental income. A Freddie Mac Income Calculator Certificate is also returned, providing valuable insight into the method of income calculation.
A Spectrum of Income Assessment Solutions
The Freddie Mac Income Calculator (GUI and API) allows lenders to calculate wage, self-employed and rental property income with greater ease. The income calculator GUI is free and online with no login or protected personal information (PPI) required. The income calculator API allows for direct integration or by connection with an integrated third-party service provider.
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).
- Rental Income – Properties reported on Schedule E.
Benefits:
- Get Freddie Mac’s view of income calculation in a way that works best for your business – on an individual loan basis or through larger automated, scalable workflows.
- Potentially reduce repurchase risk and receive representation and warranty (R&W) relief eligibility.
- Can be used prior to submitting to LPA.
- R&W relief results available right on the LPA feedback certificate (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.
- Rental Income – Leverage tax data (returns and transcripts) to derive income from rental properties.
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 new Freddie Mac Income Calculator provides a powerful resource that delivers the accuracy and certainty our partners need to operate confidently from initial qualification and can minimize risk to us as a Lender. The Originator, Lender and Investor are all aligned to the same calculation from the start.
Kim Nichols
Chief TPO Production Officer
Pennymac TPO
We started using the Freddie Mac Income Calculator and saw that it matched the calculation of our own internal calculator 99% of the time. That really helped validate our numbers and helps us efficiently and confidently calculate borrower income early in the process.
Annette Battaglia
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.
Rental Income
Tax data (returns and transcripts): Properties reported on Schedule E.
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
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.
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