Magic Minutes training series

Analyzing Self-Employed Income

Calculating the qualifying income of a self-employed borrower can be challenging. These videos can help you to better analyze if the business will continue to generate and distribute income, and whether your borrower will be able to make future mortgage payments.

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Eligibility requirements

This foundational video discusses who can be considered self-employed, the eligibility requirements that must be met, and what factors have to be considered when evaluating self-employed income.

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Business structures

Discover how understanding the different types of business structures can help you to effectively communicate with your borrower, document the file and understand how money flows from business tax returns to your borrower’s personal tax returns.

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Documentation requirements

Discover how correctly documenting your file from the start can expedite turn times. The video also covers the difference between Fannie Mae and Freddie Mac documentation requirements, and what tools can help you to confidently calculate qualifying income.

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Cash flow analysis

Cash flowing self-employed income is more than plugging numbers into a worksheet. Learn how to look at income from a mortgage perspective, which 3 key concepts are used during the cash flowing process and how to analyze earnings trends to calculate qualifying income correctly. (October 2023)

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Vehicle mileage depreciation I - overview

When it comes to Schedule C, there are 2 opportunities to add back depreciation. The tutorial defines the difference between the use of actual expenses and standard deduction. Plus, you’ll learn where to find vehicle miles within the tax forms and when you can add back the depreciation portion of vehicle expenses.

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Vehicle mileage depreciation II – case studies

In this part II tutorial, you’ll build a better understanding of the impact of mileage on the depreciation of vehicles. Through the exploration of 3 real-life case studies, you’ll learn: where to look for business miles on tax forms, how to confirm the use of standard deduction, and what common mistakes to avoid.

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Video

Clearing up K-1 confusion

Schedule K-1s can be tricky, but understanding them is essential for qualifying for a mortgage. This video clarifies who receives K-1s, why we review them, and when you can use K-1 earnings to qualify. We'll walk through five common K-1 scenarios and demystify the difference between ordinary income and distributions.

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Business liquidity

Calculating business liquidity can provide powerful insight when assessing the financial health of a business. Find out exactly what liquidity tells us, how it is calculated, and the 3 ways this information is used while cash flowing a business.

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Magic Minutes training series

Analyzing Self-Employed Income

Eligibility requirements

Business structures

Documentation requirements

Cash flow analysis

Vehicle mileage depreciation I - overview

Vehicle mileage depreciation II – case studies

Clearing up K-1 confusion

Business liquidity

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Origination & servicing tools tutorials

Introduction to MI basics

Homebuyer education options

About MGIC

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