c. Section D, Debts and Obligations

List all known debts and obligations of the applicant and spouse including any alimony and/or child support payments.

Place a check mark in the (3) column next to any “significant” debt or obligation.  See the topic “Analysis of Debts and Obligations” in section 5 of this chapter, for an explanation of “significant.”

Job Related Expense

Include any costs for child care, significant commuting costs, and any other direct or incidental costs associated with the applicant’s (or spouse’s) employment.  Checkmark this item if total job related expenses are significant.

d. Item 33, Federal Income Tax

Enter the applicant’s estimated monthly Federal income tax.  If the applicant has a Mortgage Credit Certificate, reduce the Federal income tax by the estimated tax credit.

Reference:  See the topic “Income Tax Credits from Mortgage Credit Certificates” in section 3 of this chapter.

e. Item 44,  Balance Available for Family Support

Enter the appropriate residual income amount from the following tables in the “guideline” box.  Residual income is the amount of net income remaining (after deduction of debts and obligations and monthly shelter expenses) to cover family living expenses such as food, health care, clothing, and gasoline. 

The numbers are based on data supplied in the CES (Consumer Expenditures Survey) published by the Department of Labor’s Bureau of Labor Statistics.  They vary according to loan size, family size, and region of the country.

Special Instructions for Using Tables

Count all members of the household (without regard to the nature of the relationship) when determining “family size,” including

·   an applicant’s spouse who is not joining in title or on the note, and

·   any other individuals who depend on the applicant for support.  For example, children from a spouse’s prior marriage who are not the applicant’s legal dependents.