02 C Ordinance or Law Insurance. Fannie Mae Cash-Out Refinance . 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. For additional information, see B3-3. PART B Origination thru Closing. Asset Requirements. Fannie Mae’s underwriting guidelines emphasize the continuity of a borrower’s stable income. " Selling Guide: Fannie Mae Single Family. The DU validation service offers lenders an opportunity to deliver loans with more certainty. To be eligible as a HomeReady mortgage, the total annual qualifying income may not exceed 80% of the AMI for the property’s location. Determining the Need for Federal Income Tax Returns. Certain components of the loan file – income, employment, and assets – are eligible for validation by DU using electronic verification reports obtained from vendors. 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. freddiemac. 1-09, Other Sources of Income in December 2020. Other income sources can include annuities, distributions from retirement savings plans, and other government retirement benefits. Lenders are encouraged to utilize Fannie Mae Form 1084 “Cash Flow Analysis,” Fannie Mae 1088 “Comparative Income Analysis,” or comparable self-employment evaluation form, and Attachment 9-E to assist in the calculation of self-employment income. B3-3. The lender must assess repayment or additional obligation considerations to determine the impact on borrower. a cash-out refinance transaction with a DTI ratio greater than 45%. 1-09, Other Sources of Income. 01. Lender must document 3–year continuance. 4 2019QYTD 2023 $0 $10 $20 $30 Base. published by . Depository Assets. Beware of scamsSelling Notice - Area Median Incomes 2023. Temporary leave income: $2,000 per month. 1-02, Standards for Employment Documentation. This requirement is. 2 $14. For manually underwritten loans, the income from a non-occupant borrower may be considered as acceptable qualifying income. is employed by family members (two years’ returns); is employed by interested parties to the property sale or purchase (two years’ returns); Total qualifying income = supplemental income plus the temporary leave income. 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. Hourly. 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. Obtain a copy of the borrower’s disability policy or benefits statement from the benefits payer (insurance company, employer, or other qualified disinterested party) to determine. The lender must obtain. DU considers the following assets non-liquid assets: Cash Deposit on Sales, Net Worth of Business, Other Non-Liquid Asset, and Unsecured Borrowed Funds. Cash Value of Life Insurance and Debt-to-Income Ratios. The documentation must be in compliance with B1-1-03, Allowable Age of Credit Documents and Federal Income Tax Returns. These limits vary based on location and property size. 1-01, General Income Information,. When a component of the loan is validated by DU, the loan may. 70%. (Signed federal income tax returns may also be required to verify unemployment income related to seasonal. If the property has resale restrictions, see B5-5. The payments from an ordinary annuity can be fixed or variable, and it has the potential to generate compound interest and. 1-09, Other Sources of Income. Ask Poli is an Artificial Intelligence powered search tool. financial markets. HomeReady. The Fannie Mae guidelines allow borrowers to use retirement income, such as pensions, Social Security benefits, and distributions from retirement accounts like 401 (k)s or IRAs, for mortgage qualification. 2-06, Fannie Mae Flex. 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. 0 $2. The initial adjustment period in months must align with the initial fixed-rate period in years. monthly income from annuities, insurance policies, retirement funds, pensions, disability or death benefits, rental. Manually underwritten loans: The minimum required reserves are documented in the Eligibility Matrix . Schmidt also oversees the company’s alternative asset investing and the hedging of variable annuity guarantees and chairs the Senior Asset Liability Committee. Gift funds may fund all or part of the down payment, closing costs, or financial reserves subject to the minimum borrower contribution requirements below. part-time job, second job, or. Individuals who change jobs frequently, but who are nevertheless able to earn consistent and predictable income, are also considered to. mortgage credit certificates. Non-taxable income refers to earnings that are exempt from income taxes. Fannie Mae. (Weekly gross pay x 52 pay periods) / 12 months. Funds needed to complete the. Biweekly. Make sure you have your annuity and tax documents organized before you apply for the loan and you should be well-positioned to qualify. Fannie Mae and Freddie Mac offer a variety of coverage options. , ET,. Regular income amount: $6,000 per month. The lender may use the Request for Verification of Employment (Form 1005) to document income for a salaried or commissioned borrower. They offer an alternative to traditional. 3-13 , and Selling Guide section B5-6-02. See below for maximum gross-up amounts: Fannie Mae and Freddie Mac allow grossing up 125% for conventional financing for fixed income borrowers on social security. Certain components of the loan file – income, employment, and assets – are eligible for validation by DU using electronic verification reports obtained from vendors. Verification of Long-Term Disability Income. . 9 Billion for 2022 and $1. Hourly. 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. Calculating Income 23 Fannie Mae Selling Guide. 1, Employment and Other Sources of 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. Lenders, though, will want to verify that your annuity payments will continue for at least the next 3 years. Financing Concession . Debt -to-Income Ratio 30. Yes. 1 The risk profile of this loan casefile appear s to meet Fannie Mae's guidelines. 16, 2020 The Selling Guide has been updated to include changes to the following: Single-width manufactured homes: expanded eligibility to allow the sale of loans secured by single-width manufactured homes If retirement income is paid in the form of a distribution from a 401 (k), IRA, or Keogh retirement account, determine whether the income is expected to continue for at least three years after the date of the mortgage application. Freddie Mac HomeOne ℠. This. *****income as long as the probability of such pay to continue is verified in writing. The Guaranteed Minimum Withdrawal Benefit (GMWB) is a feature of certain annuity contracts. The value of the asset and any related documentation must meet the requirements. 02 D Boiler and Machinery / Equipment / Mechanical Breakdown Insurance. Beware of scamsHave less than 20% to put down on your home. 12 CFR 30, Appendix A, and 12 CFR 160. Retirement, Government Annuity, and Pension Income. Our team is available seven days a week and are experts at. DU does not consider the amount of non-liquid assets. Documentation Requirements. 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. For more information, see B3-3. 1 4. interest and dividend income (unless other evidence that asset will be depleted) military income. Down payment. Section 5303. Chapter B3-1: Manual Underwriting. Each ARM plan must offer lifetime and per. The lender must verify the borrower's income in accordance with Section B3–3. 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. Refer to Selling Guide. The DU validation service offers lenders an opportunity to deliver loans with more certainty. In this case, add the $200,000 and $700,000 together. When consecutive credit documents are in the loan file, the most recent document. For more information, see B3-3. Income or Loss Reported on IRS Form 1065 or IRS Form 1120S, Schedule K-1. The lender must verify employment income for all borrowers whose income is used to qualify for the mortgage loan. Standard Freddie Mac. For manually underwritten loans, Fannie Mae’s maximum total DTI ratio is 36% of the borrower’s stable monthly income. Home, 60 percent. Please take a few minutes to watch a short training video. Income documentation as outlined in Form 710 based on income type. Chapter B3-4: Asset Assessment. The stable and reliable flow of income is a key consideration in mortgage loan underwriting. Base Pay (Salary or Hourly) Income. 1, Employment and Other Sources of Income. Gift Funds. Fannie Mae. Refer to Selling. The lender may use Fannie Mae’s Comparative Income Analysis or any other method of trend analysis that enables it to determine a business’s viability, as long as the method used fairly presents the viability of the business and results in a degree of accuracy and a conclusion that is comparable to that which would be reached by use of Form. Mortgage Lending and Non-Borrower Household Income A Fannie Mae Housing Working Paper December 29, 2015 Walter Scott, Senior Economist . Whether you’re just thinking about buying a home or have already started shopping, Fannie Mae offers expert guidance and insight into the homebuying process, your mortgage options, and what to expect along the way. S. 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. Lenders have difficulty using income from the growing number of gig economy workers* to. Retirement, Government Annuity, and Pension Income . If you have additional questions, Fannie Mae customers can visit Ask Poli to get information from other Fannie Mae published. 3-01, Stocks, Stock Options, Bonds, and Mutual Funds, for. an IRS 1099 form. a copy of signed federal income tax return, an IRS W-2 form, or. Social Security, VA, or other government retirement or annuity. 1-01, General Income Information), and use the averaged amount as part of the borrower’s qualifying income as long as the borrower provides current evidence that they own additional property or assets that can be sold if extra income is needed. Both offer flexible underwriting and low-down payments, with unique benefits and limitations. This blog covers just some of the basics about establishing income continuance. 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. (Weekly gross pay x 52 pay periods) / 12 months. Section 5303. It's best to gather these documents ahead of time to streamline the application process. Develop an average income from the last two years (according to the Variable Income section of B3-3. Fannie Mae’s underwriting guidelines emphasize the continuity of a borrower’s stable income. 01. Retirees often have significant assets, but limited income, so Fannie and Freddie have found ways to help retirees qualify based on their assets. Fannie Mae HomeView® can be used to satisfy the homeownership education. A 45% DTI ratio can sometimes be considered depending on a borrower's credit score and reserve requirements. not required unless the borrower requests a release of liability. The lender must obtain. You can also use the income from annuities, an investment vehicle that pays out regular monthly payments, when applying for a mortgage. 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. Section 5303. For additional information, see B3-3. The stable and reliable flow of income is a key consideration in mortgage loan underwriting. Fannie Mae Corporation pays an average of $7,537 in annual employee bonuses. Example. Are a first-time homebuyer. foster-care income. 01 or $-0. 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. The lender must verify the borrower’s ownership of the account or asset. The lender must obtain. Launch Ask Poli for Sellers . the business provides more than $12 billion of protected income payments. Non-taxable income refers to earnings that are exempt from income taxes. self-employment income. Top Lender Questions on Federal Income Tax Returns, Installment Agreements, and Transcripts . 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. Determine the net documented assets. The lender must obtain. Total verified liquid assets: $30,000. Certain components of the loan file – income, employment, and assets – are eligible for validation by DU using electronic verification reports obtained from vendors. Home Possible Income Limit – For the specific census tract, this is the maximum borrower income allowed to qualify for Home Possible. 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. Immediate annuities are taxed as income when payments are received, while deferred annuities offer tax-deferred growth during the accumulation phase. When a component of the loan is validated by DU, the. 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. Maximum LTV, CLTV, and HCLTV Ratio. This income can offset certain weaknesses that may be. The lender must verify employment income for all borrowers whose income is used to qualify for the mortgage loan. General Information. If the actual amount of federal and state taxes that would generally. Joint life annuities are a valuable financial tool for couples seeking a consistent income stream in retirement. 2. Lender must document 3–year continuance. , ET,. Net proceeds from a loan against the cash value or from the surrender of a life insurance policy are an acceptable source of funds for the down payment, closing costs, and reserves. 501. Area median income (AMI) estimates are provided to Fannie Mae by our regulator, the Federal Housing Finance Agency. Bonus pay at Fannie Mae Corporation ranges from $8,000 to $8,000 annually among. 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. 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 Guaranteed Minimum Withdrawal Benefit (GMWB) is a feature of certain annuity contracts. financial markets. The employment offer must clearly state the borrower has fixed base income (e. Guide Resources. 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. Variable Income. . All of the above calculations must be compared with the documented year-to-date base earnings. citizen borrowers. This verification can be provided by the borrower, by the borrower’s employer, or by a third-party employment verification vendor. b. 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. b. Underwriting Borrowers. Subpart B1: Loan Application Package. a. The stable and reliable flow of income is a key consideration in mortgage loan underwriting. All of the following loan parameters must be met in order for employment-related assets to be used as qualifying income: Loan Parameter. Published May 3, 2023Disability Income — Long-Term. Minus 10% of $500,000 ($500,000 x . An annuity due is a type of annuity that is commonly used in personal finance and investing. Verification of Long-Term Disability Income. The maximum can be exceeded up to 45% if the borrower meets the credit score and reserve requirements reflected in the Eligibility Matrix . The statement must specify the income type, amount and frequency of the payment, and include confirmation of the initial start date. Annuity Income Watch Me! Annuity & Retirement Distribution Answer Me! Foundations On-Demand NOT YOUR ORDINARY INCOME 13 Notes: Watch Me! Annuity & Retirement DistributionConclusion. See B3-3. Total verified liquid assets: $30,000. Home, 80 percent. 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. The policy that permitted this type of income was eliminated in 2009. The secondary market purchases loans from. If I have a question on how to document income, I Google “Fannie Mae requirement for…” or “Freddie Mac Doc Matrix”. This type of annuity is designed to help individuals maintain their purchasing power over time, as the payments they receive will increase in response to rising prices. WASHINGTON, DC – Fannie Mae (FNMA/OTCQB) today announced plans to report its second quarter 2023 financial results on Tuesday morning, August 1, 2023, before the opening of U. Lender must document 3–year continuance. For all mortgage loans (existing and new construction), the credit documents must be no more than four months old on the note date. 501. Biweekly. Document a two-year history of the income, as verified by copies of the borrower's signed federal income tax returns, or; copies of account statements. Earnings may not be used unless the borrower owns 100% of the business. Weekly. 1-09, Other Sources of Income. Why were the Fannie Mae Income Limits 2023 adjusted?Fannie Mae customers! Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. Total qualifying income = supplemental income plus the temporary leave income. (M SG ID 0 0 08). Fannie Mae vs Freddie Mac vs Ginnie Mae . 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. For a comprehensive list of resources such as access forms,. The date of the completed form must comply with B1-1-03, Allowable Age of Credit Documents and Federal Income Tax Returns . Note: Ask Poli is an Artificial Intelligence powered search tool. The total qualifying income that results may not exceed the borrower's regular employment income. The total qualifying income that results may not exceed the borrower's regular employment income. Refer to B3-3. 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. Going forward, all commission income will be treated the same, and individual tax returns (or tax. 1, Employment and Other Sources of Income. The lender must verify the borrower's income in accordance with Section B3–3. c. All of the above calculations must be compared with the documented year-to-date base earnings. All guidance specific to COVID-19 will be communicated through Lender Letters . Non-liquid assets do not have to be verified, and will not be identified in a verification message. monthly income from annuities, insurance policies, retirement funds, pensions, disability or death benefits, rental income, and other income such as. the conditions of eligibility for these loans, and features such as annuity income calculations used in these loans. Funds needed to complete the. November 1, 2023. These payments can be. Note: Ask Poli is an Artificial Intelligence powered search tool. (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. Regular income amount: $6,000 per month. Mortgage qualification requirements for retirees: Assets. Borrower’s Share of Income or Loss. 1-03, Base Pay (Salary or Hourly), Bonus, and Overtime Income. equivalent to 25% of the non-taxable income to the borrower’s income. GMWBs are designed to provide. 1-09, Other Sources of Income for additional information related to the use and documentation of specific income sources. 2$7. If the actual amount of federal and state taxes that would generally be. Chapter B3-2: Desktop Underwriter (DU) Chapter B3-3: Income Assessment. For information related to employment offers or contracts, refer to B3-3. D. Inflation -adjusted annuities are typically offered by. 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. Forbearance Plan . Social Security, VA, or other government retirement or annuity. Document current receipt of the income, as verified by one or more of the following: an IRS 1099 form. 1-09, Other Sources of Income. Inflation -adjusted annuities are typically offered by. Total qualifying income = supplemental income plus the temporary leave income. Notably, Fannie Mae recognizes retirement income,. 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. Social Security, VA, or other government retirement or annuity. Guide Resources. by Sarah LagattollaDirector of Credit Risksarah@bankersadvisory. Home, 80 percent. Updated: 05/03/2023. DU loan casefiles: DU will determine the reserve requirements based on the following: Two months’ reserves for a second home transaction. For additional information, see FAQs: Using Income from Retirement and Employment-related Assets and B3-3. Base Pay (Salary or Hourly) Income. 1 $11. The total qualifying income that results may not exceed the borrower's regular employment income. mortgage credit certificates. equivalent to 25% of the non-taxable income to the borrower’s income. The December Selling Guide update expands eligibility to allow the sale of loans secured by single-width manufactured homes; updates requirements related to the use of retirement, government annuity, and pension income; modifies our seller/servicer eligibility. 1-02, Standards for Employment Documentation and B3-3. a copy of signed federal income tax return, an IRS W-2 form, or ; an IRS 1099 form. You'll need proof of income, such as pay stubs or tax returns, proof of assets, credit history, and more. 4 Billion for Fourth Quarter 2022. Total verified liquid assets: $30,000. the lender must evaluate it according to Fannie Mae’s guidelines for income received from a partnership or an S corporation. The following table provides the requirements for employment-related assets that may be used as qualifying income. Both are easy to find on the web and can. Examples of liquid financial assets that can be used for reserves include readily available funds in. 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. Fannie Mae HomeView® can be used to satisfy the homeownership education. 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. Employment offers or contracts: prohibits an employment offer or contract for future employment from a family member or interested party to the transaction Lender staffing, training, and policies and procedures:. 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. 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. Annually or for any specified period, the total Effective Gross IncomeEffective Gross IncomeOn an annual basis or any specified period, the total of Net Rental Income plus other income per Part II, Chapter 2: Valuation and Income, Section 202: Income Analysis and the applicable products and features in Part III. The lender or servicer must ensure that the insurer, policy, and coverage meet Fannie Mae's requirements. An annuity mortgage is a financial product that offers a regular and fixed repayment schedule, including both the principal and interest amount. Refer to the Variable Income section of B3-3. The required documentation to verify income disclosed by the Borrower(s) on Form 710, Mortgage Assistance Application, and the corresponding methods to calculate the income from each type are provided in this exhibit. 4155. 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. The Servicer must gross up all net income when the Borrower submits bank statements to support the income type. Retirement, Government Annuity, and Pension Income . Determine the net documented assets. VA Loans allows borrowers to gross up 115% of their social. Items required for a complete BRP : Form 710, or equivalent, that is completed in its entirety. interest and dividend income (unless other evidence that asset will be depleted) military income. 3 for instructions on processing IRS Form 4506-C, if applicable, based onNon-Taxable Income and Its Significance. 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). 1-09, Other Sources of Income in December 2020. Unless the lender has knowledge to the contrary, if the income does not have a defined expiration date and the applicable history of receipt of the income is documented (per. Regular income amount: $6,000 per month. For loan casefiles underwritten through DU, the maximum allowable DTI ratio is. 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. ** The 2016 total loan volume per lender used here includes the best available annual origination information from Fannie Mae, Freddie Mac, and Marketrac. 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. a copy of signed federal income tax return, an IRS W-2 form, or. an IRS 1099 form. Retirement, Government Annuity, and Pension Income . It does not apply to disability income that is received from the Social Security Administration. Announcement SEL-2023-10: Selling Guide Updates. HomeReady permits lower credit scores. (See B3-3. Lenders are responsible for making the final determination of whether the borrower’s specific income source has a defined expiration date. Citizen Borrowers. 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. Explore Tools and Information to Help with Your Housing Journey. Stable and Predictable Income. Company to Host Conference Call. Q2. Standard Fannie Mae. Fannie Mae Military Housing Loan . Selling Guide Announcement (SEL-2020-07) Dec. Annuity Income Watch Me! Annuity & Retirement Distribution Answer Me! Foundations On-Demand NOT YOUR ORDINARY INCOME 13 Notes: Watch Me! Annuity & Retirement DistributionConclusion. Guide Resources. Vested assets in the form of stocks, government bonds, and mutual funds are acceptable sources of funds for the down payment, closing costs, and reserves provided their value can be verified. The sum is $900,000. an IRS 1099 form. 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. 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. Net proceeds from a loan against the cash value or from the surrender of a life insurance policy are an acceptable source of funds for the down payment, closing costs, and reserves. freddiemac. 9 $2. All income that is calculated by an averaging method must be reviewed to assess the borrower’s history of receipt, the frequency of payment, and the trending of the amount of income being received. d. The most common way for retirees to get a mortgage is by qualifying based on income, said certified financial planner Daniel Graff, a principal and client advisor at. What are Fannie Mae’s expectations of a seller or servicer if its mortgage operation is impacted due to a. Fannie Mae customers! Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. Q3. 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 lender must evaluate it according to Fannie Mae’s guidelines for income received from a partnership or an S corporation. Standard Freddie Mac. Social Security, VA, or other government retirement or annuity. Fannie Mae Guidelines Employment-Related Assets as Qualifying Income 33 Asset Requirements –If the employment-related assets are in the form of stocks, bonds, and mutual funds, 70% of the value (remaining after costs for the transaction and consideration of any penalty) must be used to determine the income stream toContinuity of Income . 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.