Any New Trends in Calculating Income to Qualify?

The old days of "Pay Stubs" are fading quickly. Direct deposit is at an all-time high (unless it's just our areas).

I wanted to get some feedback from anyone who is using something different than "3 Times the Rent" to qualify.

I have seen:

1. 3 times the NET rent (I've always used gross)
2. 55% of the weekly gross
3. Any amount more or less than 3%?

I am thinking about changing to a % of their net to make it easier for them to calculate it themselves.

Any feedback would be appreciated!!!

Our income qualification is that NET income monthly should be 3x the rent...you can't pay bills with what you don't bring home. Our scoring matrix allows for a lower rent/income ratio, as low as 2.5x, with a suitable cosigner and decent credit/rental history. We also accept student loans/financial aid in excess of tuition as income, for those residents who are current students. Thankfully, we are not a tax-credit property, so we can utilize bank statements showing direct deposit (must be easily identifiable as originating from employer listed on app) instead of actual paystubs. Our self-employed applicants, and those who work for tips, can be challenging...tax returns must be provided.

It's not exactly outside-the-box thinking, but there you have it.

I always see people not maximizing the income that is there already. They calculate an estimate of an applicants written income on application or never consider a payroll situation with 27 pay periods. People ALWAYS document less income (net or gross) by not asking the right questions & actually calculating the income.

Also I have used a YTD pay check stub and calculated from the total YTD $ pay vs. number of weeks in the YTD already passed and then come up with an annual and monthly average. This works well for people who get quarterly bonuses or work seasonally & are actually qualified but their 2 most recent pay check stub amounts may not reflect that, but the YTD does reflect the money.

I don't want to force it to work but I want to make sure everyone gets credit for what they need to qualify!