2. copies of the current lease agreement (s) if the borrower can document a qualifying exception (see Reconciling Partial or No Rental. What are Fannie Mae’s expectations of a seller or servicer if its mortgage operation is impacted due to a. (This is referred to as "Monthly Market Rent" on the Form 1007. These guidelines describe our underwriting requirements for one-to-four family conforming conventional mortgages and can be superseded by changes made by secondary market investors, Federal NationalGROUP ANNUITIES – if you purchased your annuity through an employer 403(b) Withdrawal Request Form - Non-ERISA This form is for a participant or alternate payee to request a distribution from a 403(b) Non-ERISA annuity other than for a hardship or as a systematic withdrawal. Assets used for the calculation of the monthly income stream must be owned individually by the borrower, or the co-owner of the assets must be a co-borrower of the mortgage loan. The borrower has the right to select the insurer of their choice to provide property insurance for the subject property, provided that the insurance meets Fannie Mae's requirements. This is the denominator of the loan's Debt-to-Income Ratio. 1. Temporary leave income: $2,000 per month. If the Net Monthly Rental Income is a “breakeven” amount, the user must enter either $0. When consecutive credit documents are in the loan file, the most recent document. Documentation Requirements. Social Security, VA, or other government retirement or annuity. an IRS 1099 form. DU considers the following assets non-liquid assets: Cash Deposit on Sales, Net Worth of Business, Other Non-Liquid Asset, and Unsecured Borrowed Funds. Funds needed to complete the transaction: $18,000. Hourly. Perez Senior Vice President andFor borrowers putting in sweat equity to their homes for HomeReady loans, Fannie Mae no longer requires a 3% personal funds contribution nor caps the sweat equity contribution towards a down payment. checking or savings accounts; investments in stocks, bonds, mutual funds, certificates of deposit, money market funds, and trust accounts; the amount vested in a retirement savings account; and. Regular income amount: $6,000 per month. When you purchase an annuity, you can choose from several payout. But, say the borrower has existing debts. If income from a government annuity or pension account will begin on or before the first payment date, document the income with a benefit statement from the organization providing the income. Acceptable Sources of Reserves. The requirement to reduce the value of retirement assets consisting of stocks, bonds, and mutual funds by 30% when measuring the three-year continuance for. Negative business income is considered “zero” for annual income calculations. Immediate annuities are taxed as income when payments are received, while deferred annuities offer tax-deferred growth during the accumulation phase. See the applicable section below for information on Social Security income. This Fact Sheet provides additional guidance to help lenders determine eligibility for non-U. If your mortgage is owned or guaranteed by either Freddie Mac or Fannie Mae, you may be eligible toYou can calculate your DTI ratio by dividing your recurring minimum expenses by your total monthly income. Learn MoreIf the borrower is financing a second home or investment property that is underwritten through DU and the borrower will have one to six financed properties, Fannie Mae’s standard eligibility policies apply (for example, LTV ratios and minimum credit scores). 1-02, Standards for Employment Documentation. Develop an average income from the last two years (according to the Variable Income section of B3-3. Fannie Mae guidelines. Our team is available seven days a week and are experts at. The stable and reliable flow of income is a key consideration in mortgage loan underwriting. Base Pay (Salary or Hourly) Income. Fannie Mae lets lenders use a borrower’s retirement assets in one of two ways to help them qualify for a mortgage. Biweekly. General Information. 4 Billion for Fourth Quarter 2022. 1 $8. For all mortgage loans (existing and new construction), the credit documents must be no more than four months old on the note date. Impact of COVID-19 on Servicing and LL-2021-07, COVID-19 Payment Deferral and Fannie Mae Flex Modification for COVID-19 Impacted Borrowers. When a loan casefile receives an Approve/Ineligible recommendation, the lender should: Review the DU loan data for accuracy and verify that all income, assets, and liabilities were accurately recorded and fully disclosed by the borrower. Example. Guide Resources. These annuities are. Social Security, VA, or other government retirement or annuity. interest and dividend income (unless other evidence that asset will be depleted) military income. the borrower’s most recent year of signed federal income tax returns, including Schedule 1 and Schedule E, or. Fannie Mae has learned of a consumer fraud scam involving a person who claims to be a Fannie Mae employee contacting people offering to modify their mortgage and requesting money or gift cards. Servicers must refer to Section 9202. Lender must document 3–year continuance. For depository assets (checking and savings accounts, money market funds, and certificates of deposit), DU will require the following: two consecutive monthly bank statements (60 days of account activity) for all purchase transactions, or. Fannie Mae permits lenders to request specific or limited documentation from the IRS when submitting a request with the borrower’s consent on IRS Form 4506-C (such as requesting only the transcript for forms W2 or 1099), rather than always requiring the full transcript of the borrower’s personal income tax return (aka Form 1040). Calculating Income 23 Fannie Mae Selling Guide. An inflation -adjusted annuity is a financial product that provides a stream of income that increases with inflation. Income from Other Sources have retirement income from two different sources, sum the amounts and list the total once on the form as “Retirement”). an IRS 1099 form. It provides predictability and stability but requires careful consideration, given its long-term commitment and potential for higher initial payments. The lender must verify the borrower's income in accordance with Section B3–3. the amount and duration of the borrower's “temporary leave income,” which may require multiple documents or sources depending on the type and duration of the leave period; and. Document current receipt of the income, as verified by one or more of the following: a statement from the organization providing the income, a copy of retirement award letter or benefit statement, a copy of financial or bank account statement, a copy of signed federal income tax return, an IRS W-2 form, or; an IRS 1099 form. Carlos T. The requirement to reduce the value of retirement assets consisting of stocks, bonds, and mutual funds by 30% when measuring the three-year continuance for retirement income was removed from the Selling Guide B3-3. an IRS 1099 form. Launch Ask Poli for Sellers . Available liquid reserves: $12,000. If the retirement assets are in the form of stocks, bonds, or mutual funds, the account must meet the requirements of B3-4. 3-01, Stocks, Stock Options, Bonds, and Mutual Funds, for. The lender must obtain. The borrower's monthly gross income is defined as the borrower's monthly income amount before any payroll deductions and includes the following items,. c. Fannie Mae customers can visit Ask Poli to get information from other Fannie Mae published. the conditions of eligibility for these loans, and features such as annuity income calculations used in these loans. This applies for a one-unit property in an amount up to 30% of the total gross income that is used to qualify the borrower for the mortgage if the boarder. FANNIE & FREDDIE INCOME DOCUMENTATION FANNIE MAE DU/FREDDIE MAC LP These are common forms of income we see. 1, Employment and Other Sources of Income. *****income as long as the probability of such pay to continue is verified in writing. Which of the following is a guideline used by Freddie Mac when determining if a loan is conforming. 1, Employment and Other Sources of Income. The documentation required for each income source is described below. Fannie Mae may revoke these limited permissions by written notice to any or all Fannie Mae-approved users. Six months' reserves for the following: a two- to four-unit principal residence transaction, an investment property transaction, and. Refer to the Variable Income section of B3-3. The table below details the standard coverage requirements. All of the above calculations must be compared with the documented year-to-date base earnings. a copy of signed federal income tax return, an IRS W-2 form, or. Total qualifying income = supplemental income plus the temporary leave income. Visit our consumer alert web page for more information, and please report any such scams to us: 1-800-2FANNIE (1-800-232-6643) Option 4. Income from Other Sources have retirement income from two different sources, sum the amounts and list the total once on the form as “Retirement”). Examples of income types without a defined expiration date. E. Temporary leave income: $2,000 per month. DU will require the following: a completed Request for Verification of Employment (Form 1005), the borrower's recent paystub and IRS W-2 forms covering the most recent one-year period, or. This field is located in the Underwriting section of the Loan Detail screen in Loan Delivery. a statement from the organization providing the income, a copy of retirement award letter or benefit statement, a copy of financial or bank account statement, a copy of signed federal income tax return, an IRS W-2 form, or. d. Earnings may not be used unless the borrower owns 100% of the business. Fannie Mae mortgage originating and underwriting products are easy to use and designed to help you grow your business and meet your borrowers’ needs. Regular income amount: $6,000 per month. Fannie Mae’s underwriting guidelines emphasize the continuity of a borrower’s stable income. We have a program that will take the sum of all liquid assets and divide the sum by 60 months. an IRS 1099 form. equivalent to 25% of the non-taxable income to the borrower’s income. When income from temporary leave is being used to qualify for the mortgage loan, the lender must enter the appropriate qualifying income amount into DU based on the requirements provided in B3-3. Maximum LTV, CLTV, and HCLTV Ratio. 2-02, Loans with Resale Restrictions: Loan and Borrower Eligibility, for additional requirements. The servicer must determine the borrower's new modified mortgage loan terms in accordance with Determining the Fannie Mae Flex Modification Terms in D2-3. Guide Resources. The requirement to reduce the value of retirement assets consisting of stocks, bonds, and mutual funds by 30% when measuring the three-year continuance for retirement income was removed from the Selling Guide B3-3. 1 The risk profile of this loan casefile appear s to meet Fannie Mae's guidelines. Published May 3, 2023Disability Income — Long-Term. Freddie Mac HomeOne ℠. The lender must verify employment income for all borrowers whose income is used to qualify for the mortgage loan. Continuity of Income. Gift funds may fund all or part of the down payment, closing costs, or financial reserves subject to the minimum borrower contribution requirements below. , ET,. Total verified liquid assets: $30,000. 4 Billion for Fourth Quarter 2022. is employed by family members (two years’ returns); is employed by interested parties to the property sale or purchase (two years’ returns); The lender must verify the ownership of the account and confirm that the account is vested and allows withdrawals regardless of current employment status. If the property has resale restrictions, see B 5-5. Fannie Mae vs Freddie Mac vs Ginnie Mae . Usually, non-taxable income is worth 25% more for mortgage qualifying. These payments can be made for a predetermined period or continue for the annuity holder's lifetime. For additional information, see B3-3. Develop an average of the income received for the most recent two years. If there is a noticeable decline in this bonus income, it could influence a borrower's eligibility for a mortgage loan. Components of Net Interest Income Net Worth of Fannie Mae Aggregate Indebtedness of Fannie Mae(11) Other Investments Portfolio ("OIP") N e t b I n t e r e s t I n c o m e (D o l l a r s i n b i l l i o n s) $9. 1-01, General Income Information, for additional information. The new, user friendly Seller/Servicer Guide will make it significantly easier for you and your team to find, understand and share critical information. For borrowers who have less than 25% ownership of a partnership, S corporation, or limited liability company (LLC), ordinary income, net rental real estate income, and other net rental income reported on IRS Form 1065 or IRS Form 1120S, Schedule K-1 may be used in qualifying the borrower provided the lender can. An annuity due is a type of annuity that is commonly used in personal finance and investing. Subpart B1: Loan Application Package. If the actual amount of federal and state taxes that would generally be. an IRS 1099 form. Cash Value of Life Insurance and Debt-to-Income Ratios. financial markets. DU does not consider the amount of non-liquid assets. Examples of income of this type include income from hourly workers with fluctuating hours, or income that includes commissions. The borrower’s monthly gross income is defined as the borrower’s monthly income amount. This is the total amount of eligible assets minus the following: The amount of any penalties that would apply if the assets were distributed early. Funds needed to complete the. Average Fannie Mae. Acceptable Sources of Reserves. Note: Ask Poli is an Artificial Intelligence powered search tool. While every. Fannie Mae accepts a maximum of 36% ratio between total monthly income to total debt. 3; and. Determining the Need for Federal Income Tax Returns. This research was conducted by Fannie Mae’s Economic and Strategic Research (ESR) and Credit Portfolio Management Analytics (CPM Analytics) groups. Biweekly. The primary beneficiary of the trust must be the individual (s) establishing the trust. See B3-3. Other income sources can include annuities, distributions from retirement savings plans, and other government retirement benefits. (DU®), Loan Delivery, and the Area Median Income Lookup Tool over the weekend of June 10, 2023, with an effective date of June 12, 2023. Variable Income. If the trust is established jointly, there may be more than one primary beneficiary as long as the income or assets of at least one of the individuals. Employment Documentation Provided by the Borrower’s Employer. 9 Billion for 2022 and $1. monthly income from annuities, insurance policies, retirement funds, pensions, disability or death benefits, rental income, and other income such as. Fannie Mae’s underwriting guidelines emphasize the continuity of a borrower’s stable income. " Selling Guide: Fannie Mae Single Family. monthly income from annuities, insurance policies, retirement funds, pensions, disability or death benefits, rental. The statement must specify the income type, amount. Income property, 80 percent, The type of mortgage loan that best fits the asset-liability. an IRS 1099 form. If your mortgage is owned or guaranteed by either Freddie Mac or Fannie Mae, you may be eligible to Retirement, Government Annuity, and Pension Income . Annuities can offer guaranteed income, which is particularly. Maximum LTV, CLTV, and HCLTV Ratio. If the asset (s) is jointly owned, all owners. 1-09, Other Sources of Income. Tax returns are required if the borrower. The lender must obtain. If the income is verified to be nontaxable, and the income and its tax-exempt status are likely to continue, the lender may develop an “adjusted gross income” for the borrower by adding an amount equivalent to 25% of the nontaxable income to the borrower’s income. Lenders, though, will want to verify that your annuity payments will continue for at least the next 3 years. monthly income from annuities, insurance policies, retirement funds, pensions, disability or death benefits, rental. . This blog covers just some of the basics about establishing income continuance. If I have a question on how to document income, I Google. Verification of Retirement, Government Annuity, and Pension Income Document current receipt of the income, as verified by. Introduction. a copy of signed federal income tax return, an IRS W-2 form, or. D. The lender must verify employment income for all borrowers whose income is used to qualify for the mortgage loan. For additional information, see B3-3. HomeReady permits lower credit scores. Income documentation as outlined in Form 710 based on income type. The stable and reliable flow of income is a key consideration in mortgage loan underwriting. monthly income from annuities, insurance policies, retirement funds, pensions, disability or death benefits, rental income, and other income such as adoption assistance. Fannie Mae and Freddie Mac offer conventional mortgages with low down payments and homeownership education. self-employment income. The requirement to reduce the value of retirement assets consisting of stocks, bonds, and mutual funds by 30% when measuring the three-year continuance for retirement income was removed from the Selling Guide B3-3. For example, if you receive $4,000 a month from fixed income sources and your debt and recurring payments equal $1,000, your DTI ratio is 25%. Updated November 2023. Note: Some of these asset types. Hourly. To learn more about income continuance or to discuss your homebuying and mortgage financing options, contact our team by phone at (855)855-4491 or by email at jvmteam@jvmlending. Subpart B2: Eligibility. If the lender enforces a maximum debt-to-income ratio of 36 percent, the maximum possible mortgage payment in this scenario is $2,350. GMWBs are designed to provide. Sources "B3-3. 1Secondary employment must be documented by obtaining the following: a completed Request for Verification of Employment ( Form 1005 ); or. a copy of retirement award letter or benefit statement, a copy of financial or bank account statement, a copy of signed federal income tax return, an IRS W-2 form, or. 16 Document retirement, government annuity, or pension income for Alice Firstimer with one of the following documents: letters from the organization providing the income, retirement. 1-09, Other Sources of Income. Twice monthly gross pay x 2 pay periods. financial markets. , ET,. Published August 3, 2022The new, user friendly Seller/Servicer Guide will make it significantly easier for you and your team to find, understand and share critical information. Example. Asset Requirements. Company to Host Conference Call. The documentation must be in compliance with B1-1-03, Allowable Age of Credit Documents and Federal Income Tax Returns. Total qualifying income = supplemental income plus the temporary leave income. an IRS 1099 form. com. Fannie Mae Corporation pays an average of $7,537 in annual employee bonuses. 7 $3. The stable and reliable flow of income is a key consideration in mortgage loan underwriting. As. Continued on next page. Learn more about calculating your DTI ratio. If income from a government annuity or pension account will begin on or before the first payment date, document the income with a benefit statement from the organization providing the income. In a significant policy change, Fannie Mae has announced that, starting from the weekend after November 18, 2023, it will accept 5% down payments for owner-occupied 2-, 3-, and 4-unit homes. b. Refer to B3-3. Selling Guide Announcement (SEL-2020-07) Dec. Lender must document 3–year continuance. Documentation for military income calculation for a VA loan may differ significantly. When used for reserves, 100% of the value of the assets may be considered, and liquidation is not required. While Fannie Mae does not have a stated age minimum for a borrower to use retirement income to qualify, a borrower must have unrestricted access without penalty to use income from certain types of retirement accounts, such as a 401 (K), IRA or Keogh account (which may have a minimum age requirement to have "unrestricted access"). 12 CFR 30, Appendix A, and 12 CFR 160. If income from a government annuity or a pension account will begin on or before the first payment date, document the income with a benefit statement from the organization providing the income. For a comprehensive list of resources such as access forms,. Social Security, VA, or other government retirement or annuity. Note: Some of these asset types. GMWBs are designed to provide. An example of a Fannie Mae loan An example of a Fannie Mae loan. Certain components of the loan file – income, employment, and assets – are eligible for validation by DU using electronic verification reports obtained from vendors. The borrower's monthly gross income is defined as the borrower's monthly income amount before any payroll deductions and includes the following items, as. Retirement income: Income from retirement accounts (like a 401(k), IRA, 403(b), etc. Are concerned about qualifying for. Lender must document 3–year continuance Introduction. If the part-time income is variable, refer to FAQ: How is variable income calculated? For information on part-time income that is seasonal, refer to FAQ: What are the requirements for seasonal income?Temporary leave income: $2,000 per month. Fannie Mae purchases or securitizes mortgages that are secured by properties that have a business use in addition to their residential use, such as a property with space set aside for a day care facility, a beauty or barber shop, or a. S. the amount and duration of the borrower's “temporary leave income,” which may require multiple documents or sources depending on the type and duration of the leave period; and. The total qualifying income that results may not exceed the borrower's regular employment income. m. Inflation -adjusted annuities are typically offered by. Fannie Mae customers! Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. Fannie Mae has learned of a consumer fraud scam involving a person who claims to be a Fannie Mae employee contacting people offering to modify their mortgage and requesting money or gift cards. If the source of your income is not listed, ask your Lender for guidance. of this publication are granted to Fannie Mae-approved lenders, servicers, and other mortgage finance professionals, strictly for their own use in originating mortgages, selling mortgages to Fannie Mae, or servicing mortgages for Fannie Mae. Allowable Age of Credit Documents. Fannie Mae may revoke these limited permissions by written notice to any or all Fannie Mae-approved users. mortgage credit certificates. current receipt of trust income with one month’s bank statement or other equivalent document. Funds needed to complete the. Home Possible Income Limit – For the specific census tract, this is the maximum borrower income allowed to qualify for Home Possible. For more questions on this specific. Documenting Rental Income from Property Other Than the Subject Property. For all Servicing Guide resources, please visit guide. Chapter B3-2: Desktop Underwriter (DU) Chapter B3-3: Income Assessment. Lender must document 3–year continuance. The messages used to indicate if the loan casefile may be eligible towards Fannie Mae’s low-income purchase goal, very low-. Chapter B3-2: Desktop Underwriter (DU) Chapter B3-3: Income Assessment. Document regular receipt of income for the most recent 12 months. m. Stable and Predictable Income. Both are easy to find on the web and can. DU considers the following assets non-liquid assets: Cash Deposit on Sales, Net Worth of Business, Other Non-Liquid Asset, and Unsecured Borrowed Funds. Allowable Age of Credit Documents. If the retirement assets are in the form of stocks, bonds, or mutual funds, the account must meet the requirements of B3-4. 1, Employment and Other Sources of Income. If income from a government annuity or pension account will begin on or before the first payment date, document the income with a benefit statement from the organization providing the income. Each Lender must determine borrower and loan eligibility in accordance. Total qualifying income = supplemental income plus the temporary leave income. the business provides more than $12 billion of protected income payments. Web. Fannie Mae has scheduled a conference call to discuss the company's results at 8:00 a. Portfolio Manager, or Fannie Mae’s Single-Family Servicer Support Center at 1-800-2FANNIE (1-800-232-6643) with any questions regarding this Lender Letter. Fannie Mae has scheduled a conference call to discuss the company's results today at 8:00 a. Document current receipt of the income, as verified by one or more of the following: a statement from the organization providing the income, a copy of retirement award letter or benefit statement, a copy of financial or bank account statement, a copy of signed federal income tax return, an IRS W-2 form, or; an IRS 1099 form. 1, Employment and Other Sources of Income. While Fannie Mae does not have a stated age minimum for a borrower to use retirement income to qualify, a borrower must have unrestricted access without penalty to use income from certain types of retirement accounts, such as a 401(K), IRA or Keogh account (which may have a minimum age Retirement, Government Annuity, and Pension Income. Chapter B3-4: Asset Assessment. Q3. Total verified liquid assets: $30,000. Assets used for the calculation of the monthly income stream must be owned individually by the borrower, or the co-owner of the assets must be a co-borrower of the mortgage loan. Regular income amount: $6,000 per month. 1-02, Standards for Employment Documentation and B3-3. 2-01, Underwriting Factors and Documentation for a. The lender or servicer must ensure that the insurer, policy, and coverage meet Fannie Mae's requirements. The purpose of scrutinizing declining bonus. For additional information, see FAQs: Using Income from Retirement and Employment-related Assets and B3-3. 3-01, Fannie Mae Short Sale. mortgage credit certificates. November 1, 2023. 3; and. k Social Security IncomeThese guidelines describe our underwriting requirements for one-to-four family conforming conventional mortgages and can be superseded by changes made by secondary market investors, Federal NationalGROUP ANNUITIES – if you purchased your annuity through an employer 403(b) Withdrawal Request Form - Non-ERISA This form is for a participant or alternate payee to request a distribution from a 403(b) Non-ERISA annuity other than for a hardship or as a systematic withdrawal. If income from a government annuity or a pension account will begin on or before the first payment date, document the income with a benefit statement from the organization providing the income. Ask Poli is an Artificial Intelligence powered search tool. If income from a government annuity or pension account will begin on or before the first payment date, document the income with a benefit statement from the. a copy of retirement award letter or benefit statement, a copy of financial or bank account statement, a copy of signed federal income tax return, an IRS W-2 form, or. All guidance specific to COVID-19 will be communicated through Lender Letters . NOTE: Income must be reported to Fannie Mae for all high LTV refinance loans. In some cases, Fannie Mae may require additional. Fannie Mae, October 2. current receipt of trust income with one month’s bank statement or other equivalent document. Lender must document 3–year continuance. , ET. B3-3. Base Pay (Salary or Hourly) Income. Section 5303. 9 $1. Income payments from deferred annuities are also taxed as income when received. Freddie Mac Form 65 • Fannie Mae Form 1003 URLA Effective 1/2021• Instructions Revised 10/2022 1e. 02 B Business Income (including Rental Value) Insurance. This. monthly income from annuities, insurance policies, retirement funds, pensions, disability or death benefits, rental income, and other income such as. For loan casefiles underwritten through DU, the maximum allowable DTI ratio is. While every effort has been made to ensure the reliability of the content in Ask Poli, Fannie Mae's Selling Guide and its updates, including Guide Announcements and Release Notes, are the official statements of Fannie Mae's policies and procedures, and should be complied with in the event of discrepancies between information provided. Top Lender Questions on Federal Income Tax Returns, Installment Agreements, and Transcripts . Temporary Leave Income. 0 $2. If income from a government annuity or pension account will begin on or before the first payment date, document the income with a benefit statement from the organization providing the income. (Hourly gross pay x average # of hours worked per week x 52 weeks) / 12 months. mortgage credit certificates. citizens. 16, 2020 The Selling Guide has been updated to include changes to the following: Single-width manufactured. If the actual amount of federal and state taxes that would generally. Guide Resources. Refer to Selling Guide. You'll need proof of income, such as pay stubs or tax returns, proof of assets, credit history, and more. The HomeReady® mortgage includes innovative income flexibilities that can help your customers qualify for an affordable mortgage with a down payment as low as 3%. Fannie Mae Short Sale . Income (or loss) from secondary self-employment can be excluded if the borrower is using non-self-employment income to qualify (for example, salary or retirement income). PART B Origination thru Closing. This feature guarantees the annuity owner a minimum income stream, regardless of market conditions, by allowing them to withdraw a fixed percentage of their investment each year without depleting the principal. 80% if the owner of the asset (s) being used to qualify is at least 62 years old at the time of closing. Our sample generally desired immediate over deferred annuities. Items required for a complete BRP : Form 710, or equivalent, that is completed in its entirety. If the income was derived from a pension or an annuity, no action is required; If the income is derived from an IRA distribution or any other eligible retirement income types that use depletion of an asset, the lender must. checking or savings accounts; investments in stocks, bonds, mutual funds, certificates of deposit, money market funds, and trust accounts; the amount vested in a retirement savings account; and. Her previous roles included litigation partner at Jenner & Block and general counsel at Fannie Mae. Examples of liquid financial assets that can be used for reserves include readily available funds in. HomeReady and Home Possible are commendable initiatives by Fannie Mae and Freddie Mac, respectively, aiming to make homeownership more attainable for low to moderate-income borrowers. PART B Origination thru Closing. Subpart B1: Loan Application Package. 501. Debt -to-Income Ratio 30. The lender must obtain. Please take a few minutes to watch a short training video. monthly income from annuities, insurance policies, retirement funds, pensions, disability or death benefits, rental income, and other income such as. For details, see Selling Guide section B3-4. 1-09, Other Sources of Income. Borrowers whose qualifying income is less than or equal to 50% of county area median income may qualify for a Very Low Income Loan. All of the following loan parameters must be met in order for employment-related assets to be used as qualifying income: Loan Parameter. 3-01, Stocks, Stock Options, Bonds, and Mutual Funds (06/30/2015), for determining value and whether documentation of the borrower’s actual receipt of funds is required when used for the down payment and. S. They offer an alternative to traditional. 1-09, Other Sources of Income, for boarder income requirements, and B5-6-02,. Perez Senior Vice President andSelling Guide Announcement (SEL-2023-10) . When the loan casefile is resubmitted to DU after closing and prior to delivery to Fannie Mae, the lender is responsible for ensuring that: all information provided in the final submission to DU matches the terms of the closed loan;Company to Host Conference Call. Social Security, VA, or other government retirement or annuity.