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This worksheet may be used to prepare a written evaluation of the analysis of income related to self-employment. The purpose of this written analysis is to determine the amount of stable and continuous income that will be available to the borrower for loan qualifying purposes.
When using Schedule E, determine the number of months the property was in service by dividing the Fair Rental Days by 30. If Fair Rental Days are not reported, the property is considered to be in service for 12 months unless there is evidence of a shorter term of service.
SAM method says \u201cStart with $0 and ONLY add on the income (Schedules) of income you want\u201d. Plain and simple compare to AGI. With the SAM method you would only add on the income that you had the correct documents to support and knew the income met the rest of the qualifications outlined for use in the guidelines.