B3-3.4-08, Interest and Dividend Income (03/04/2026)

Stable or Increasing: Calculate an average income amount using the most recent two years personal federal income tax returns.
Decreasing: Calculate an average income amount using the most recent year personal federal income tax returns.

The following table provides verification requirements for interest and dividends income.

Criteria	Requirements
Documentation	The lender must obtain: copies of the borrower's signed personal federal income tax returns for the most recent two years, or copies of account statements that cover the most recent 24 months. Additionally, the lender must verify the borrower's ownership of the assets on which the interest or dividend income was earned. Documentation of asset ownership must be in compliance with the Allowable of Age Credit Documents policy (see B1-1-03, Allowable Age of Credit Documents and Federal Income Tax Returns B1-1-03, Allowable Age of Credit Documents and Federal Income Tax Returns, for additional information).
Income History	A minimum two-year history is required.
Income Continuance	Lenders are not required to verify continuance unless there is evidence that the asset will be depleted.
Determination of Qualifying Income	Average Income: Depending on the historical trend of the income, the lender must calculate qualifying income as follows: Stable or Increasing: Calculate an average income amount using the most recent two years personal federal income tax returns. Decreasing: Calculate an average income amount using the most recent year personal federal income tax returns. Note: Subtract any assets used for down payment or closing costs from the borrower's total assets before calculating expected future interest or dividend income.