When calculating income for a Cash For Services Member, what should be used as qualifying income?

Using the average of the last two years’ income combined with a cash flow analysis provides a more comprehensive and accurate understanding of a member's financial capacity. This method accounts for fluctuations and anomalies that may occur in a single year and offers a more stable representation of income over time.

By averaging the last two years, it mitigates the risk of relying on an atypical income year, reflecting a member’s true earning potential. Additionally, incorporating a cash flow analysis allows for the assessment of ongoing income and expenses, contributing to a clearer picture of financial stability and availability of funds for obligations, such as housing payments.

This approach aligns with prudent lending practices, as it ensures that the income considered for qualification truly represents the member's ability to meet financial commitments, rather than being influenced by a single, possibly unrepresentative year of earnings.