Non-liquid assets do not have to be verified, and will not be identified in a verification message. The employment offer must clearly state the borrower has fixed base income (e. This FAQ document provides responses to common questions related to Fannie Mae’s property eligibility and appraisal policies. Borrower’s Share of Income or Loss. Launch Ask Poli for Sellers . 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guidelines describe our underwriting requirements for one-to-four family conforming conventional mortgages and can be superseded by changes made by secondary market investors, Federal NationalGROUP ANNUITIES – if you purchased your annuity through an employer 403(b) Withdrawal Request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. 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 applicable: Social Security payments (including Social Security received by adults on behalf of minors or by minors intended for their own support); and. For all mortgage loans (existing and new construction), the credit documents must be no more than four months old on the note date. Example. Base Pay (Salary or Hourly) Income. When submitting rental income to DU for an investment property: The lender should calculate the net rental income amount for each property and enter the amount (either positive or negative) in the Net Monthly Rental Income in Section 3. 01. Published May 3, 2023Disability Income — Long-Term. Freddie Mac Form 65 • Fannie Mae Form 1003 URLA Effective 1/2021• Instructions Revised 10/2022 1e. Employment Documentation Provided by the Borrower’s Employer. Credit documents include credit reports and employment, income, and asset documentation. The stable and reliable flow of income is a key consideration in mortgage loan underwriting. 2-06, Fannie Mae Flex. com. If the loan is delivered prior to the lender obtaining a paystub then the borrower must be qualified using a fixed base income only. To calculate asset depletion income for Fannie Mae, you will need to follow these steps: 1. Income property, 75 percent. An income annuity is a financial product designed to provide a steady stream of income during retirement. These payments can be. 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. monthly income from annuities, insurance policies, retirement funds, pensions, disability or death benefits, rental. All of the above calculations must be compared with the documented year-to-date base earnings (and past year earnings, if applicable) to. Multiply the amount of the monthly net income by 1. If the actual amount of federal and state taxes that would generally. 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. Minus 10% of $500,000 ($500,000 x . But, say the borrower has existing debts. 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. Her previous roles included litigation partner at Jenner & Block and general counsel at Fannie Mae. the lender must evaluate it according to Fannie Mae’s guidelines for income received from a partnership or an S corporation. Example. 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. is employed by family members (two years’ returns); is employed by interested parties to the property sale or purchase (two years’ returns); Items required for a complete BRP : Form 710, or equivalent, that is completed in its entirety. (Signed federal income tax returns may also be required to verify unemployment income related to seasonal. Both are easy to find on the web and can. Home, 80 percent. government annuity, or pension income for john homeowner with one of theSchedule K-1 Income. current receipt of trust income with one month’s bank statement or other equivalent document. 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. Home, 60 percent. Exceptions are specified in B3-2-10, Accuracy of DU Data, DU Tolerances, and Errors in the Credit Report . m. However, Fannie Mae does allow certain exceptions to this policy for boarder income and properties with accessory units. See B3-3. Social Security, VA, or other government retirement or annuity. Verify that the income can be expected to continue for a minimum of three years from the date of the mortgage application. 50% Loan Term 180. not required unless the borrower requests a release of liability. ) (-) $50,000. Social Security, VA, or other government retirement or annuity. This requirement is. Fannie Mae may revoke these limited permissions by written notice to any or all Fannie Mae-approved users. The yielding figure is the qualified monthly income. If the property has resale restrictions, see B5-5. 80% if the owner of the asset (s) being used to qualify is at least 62 years old at the time of closing. the conditions of eligibility for these loans, and features such as annuity income calculations used in these loans. For additional information, see B3-3. 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. NOTE: Income must be reported to Fannie Mae for all high LTV refinance loans. Annuities are issued by insurance companies. 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. Financing Concession . The lender must obtain. Launch Ask Poli for Sellers . Funds needed to complete the. The Guaranteed Minimum Withdrawal Benefit (GMWB) is a feature of certain annuity contracts. Lender may use the AMI limits for purposes of determining income eligibility for RefiNow, HomeReady or other loans that have AMI requirements. Debt-to-Income Ratio 28. Home Possible Income Limit – For the specific census tract, this is the maximum borrower income allowed to qualify for Home Possible. 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. Ask Poli is an Artificial Intelligence powered search tool. Updated November 2023. " Federal Home Loan Mortgage Corporation ," Page 1. a copy of signed federal income tax return, an IRS W-2 form, or ; an IRS 1099 form. 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. 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. A borrower applies for a $500,000 mortgage at their local bank to buy a home they have under contract to purchase for $550,000. Our team is available seven days a week and are experts at. 3 for instructions on processing IRS Form 4506-C, if applicable, based onNon-Taxable Income and Its Significance. 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. Date borrower will begin receiving regular employment income: November 1. Beware of scamsHave less than 20% to put down on your home. Income property, 80 percent, The type of mortgage loan that best fits the asset-liability. 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. When used for reserves, 100% of the value of the assets may be considered, and liquidation is not required. d. Annuity payout options determine how and when the funds invested in an annuity contract are paid out to the annuity holder. The lender must verify the borrower's income in accordance with Section B3–3. See B3-3. Mortgage qualification requirements for retirees: Assets. 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. As a result of the tax law changes that will prevent lenders from being able to identify unreimbursed business expenses, the requirements for IRS Form 2106 have been removed and the automobile allowance policy has been changed. interest and dividend income (unless other evidence that asset will be depleted) military income. LTV. Be sure to consult your automated underwriting system response and program descriptions. Note: For loan casefiles that are not underwritten as a. 1-09, Other Sources of Income, for boarder income requirements, and B5-6-02,. 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. Dec. DU considers the following assets non-liquid assets: Cash Deposit on Sales, Net Worth of Business, Other Non-Liquid Asset, and Unsecured Borrowed Funds. minus the Property’s. When a transfer of ownership occurs for a mortgage loan, obtaining the mortgage insurer’s approval is either. Web. If the borrower will return to work as of the first mortgage payment date, the. (Hourly gross pay x average # of hours worked per week x 52 weeks) / 12 months. Funds needed to complete the. 1 The risk profile of this loan casefile appears to meet Fannie Mae's guidelines. Share this answer 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. 02 D Boiler and Machinery / Equipment / Mechanical Breakdown. 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). This research was conducted by Fannie Mae’s Economic and Strategic Research (ESR) and Credit Portfolio Management Analytics (CPM Analytics) groups. “Freddie Mac and Fannie Mae have adopted a new refinance option for loans to borrowers with incomes at or below 100% of Area Median Income and you may be eligible to take advantage of this program. The following table provides verification requirements for notes receivable income. The lender must obtain. Fannie Mae is updating this guidance to require that for Fannie Mae HAMP modifications, the servicer develop an “adjusted gross income” for. 2 $14. 101, Appendix. Freddie Mac HomeOne ℠. Factors such as age, gender, health status, investment amount,. LTV. Total qualifying income = supplemental income plus the temporary leave income. Want to use money that was gifted to you toward your mortgage. 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. Total verified liquid assets: $30,000. S. Chapter B3-2: Desktop Underwriter (DU) Chapter B3-3: Income Assessment. 1-09, Other Sources of Income. Social Security, VA, or other government retirement or annuity. There are five main types of pension annuities: fixed, variable, indexed, immediate, and deferred. Employment Documentation Provided by the Borrower’s Employer. (Weekly gross pay x 52 pay periods) / 12 months. 1. 9 $2. Fannie Mae Short Sale . 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. November 1, 2023. The Guaranteed Minimum Withdrawal Benefit (GMWB) is a feature of certain annuity contracts. Going forward, all commission income will be treated the same, and individual tax returns (or tax. We’ve been listening to your feedback and are excited to share the newest version of the Single-Family Seller/Servicer Guide. part-time job, second job, or. This topic contains general information for income, including: Stable and Predictable Income. the borrower’s recent Leave and Earnings Statement (LES) for military income and entitlements. 1-09, Other Sources of Income. The lender must obtain. Note: Changes since the last update are marked either NEW or UPDATED. Choosing an annuity mortgage involves. Updated: 05/03/2023. Funds needed to complete the. 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. Certain components of the loan file – income, employment, and assets – are eligible for validation by DU using electronic verification reports obtained from vendors. 1 The risk profile of this loan casefile appear s to meet Fannie Mae's guidelines. Temporary leave income: $2,000 per month. 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. For loan casefiles underwritten through DU, the maximum allowable DTI ratio is. Biweekly. For information related to employment offers or contracts, refer to B3-3. Income Assessment. Ginnie Mae insures MBSs made up of government-insured or guaranteed loans. Fannie Mae Homestyle Loan . All of the following loan parameters must be met in order for employment-related assets to be used as qualifying income: Loan Parameter. the borrower’s recent paystub and IRS W-2 forms covering the most recent two-year period. Cash Value of Life Insurance and Debt-to-Income Ratios. 9 $1. Fannie Mae customers! Get answers to your Servicing Guide & policy questions with Fannie Mae's AI-powered search tool. Subpart B3: Underwriting Borrowers. Fannie Mae’s underwriting guidelines emphasize the continuity of a borrower’s stable income. Carlos T. An annuity is a contract between an individual and an insurance company or financial institution in which the individual pays a lump sum or periodic payments in exchange for a guaranteed stream of income in the. Calculating the Borrower’s Housing Expense-to-Income Ratio. Retirees often have significant assets, but limited income, so Fannie and Freddie have found ways to help retirees qualify based on their assets. Allowable Age of Credit Documents. It does not apply to disability income that is received from the Social Security Administration. (opens in new window)Can employment-related assets be used for both income and asset calculations? Only the assets that are not used in the calculation of the monthly income stream may be considered as available funds when determining sufficient funds to close and/or financial reserve requirements. and monthly income from annuities, insurance policies, retirement funds, pensions, disability or death benefits, rental income. CONFIDENTIAL Fannie Mae Selling Guide Continuance of Income Calculating Income 24 See B3-3. a cash-out refinance transaction with a DTI ratio greater than 45%. Chapter 4, Section E HUD 4155. All other paystub requirements remain unchanged. Subpart B1: Loan Application Package. HUD, the parent of FHA, allows fixed-income borrowers to gross up 115% of their social security income. 1-09, Other Sources of Income, for boarder income requirements, and B5-6-02,. the conditions of eligibility for these loans, and features such as annuity income calculations used in these loans. 80% if the owner of the asset (s) being used to qualify is at least 62 years old at the time of closing. Underwriting Borrowers. 1-09, Other Sources of Income. Ask Poli is an Artificial Intelligence powered search tool. The borrower’s monthly gross income is defined as the borrower’s monthly income amount. 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. 1-01, General Income Information, for additional information. comFannie Mae gave current and former employees four options to reallocate their retirement funds — lump-sum distribution, an annuity, the Fannie Mae 401(k) plan or an individual retirement account. The lender must obtain. Fannie Mae HomeView® can be used to satisfy the homeownership education. Refer to Selling Guide. When funds from retirement accounts are used for reserves, Fannie Mae does not require the funds to be withdrawn from the account (s). An annuity mortgage is a financial product that offers a regular and fixed repayment schedule, including both the principal and interest amount. alimony, child support, or separate maintenance. HomeReady mortgage’s accessory unit income and boarder income flexibilities help to meet the diverse needs of today’s home buyers by expanding access to creditworthy low-income borrowers. Income documentation as outlined in Form 710 based on income type. In some cases, Fannie Mae may require additional. , ET,. Fannie Mae customers can visit Ask Poli to get information from other Fannie Mae published. A 45% DTI ratio can sometimes be considered depending on a borrower's credit score and reserve requirements. It can be a useful tool for budgeting, meeting financial obligations, and planning for retirement. 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. Underwriting Borrowers. by Sarah LagattollaDirector of Credit Risksarah@bankersadvisory. The amount of funds that will be used for down payment, closing costs. 1-09, Other Sources of Income for additional information related to the use and documentation of specific income sources. Are a first-time homebuyer. 1 4. Retirement, Government Annuity, and Pension Income . The inter vivos revocable trust must be established by one or more natural persons, solely or jointly. , guaranteed 40 hours/week). " Selling Guide: Fannie Mae Single Family. Social Security, VA, or other government retirement or annuity. " Federal Housing Finance Agency. The IRS changed the 2019 tax returns to separate IRA distributions from pension and annuity income; therefore, these fields are now separated on the tax transcript data used by the DU validation service. Biweekly. 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 standards related. A longevity annuity is a financial product designed to provide a guaranteed income stream for life, beginning at a predetermined age, typically in the later years of retirement. one monthly statement (30 days of account activity) for all limited cash. 4155. 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. PART A Doing Business with Fannie Mae. 501. Verification of Long-Term Disability Income. Fannie Mae’s underwriting guidelines emphasize the continuity of a borrower’s stable income. 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). The stable and reliable flow of income is a key consideration in mortgage loan underwriting. Note : The policy which required 60% of the vested amount in a retirement account be used was eliminated in November of 2012. Ask Poli is an Artificial Intelligence powered search tool. 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. 01 or $-0. Note: Some of these asset types. 2. Refer to the applicable topics in Chapter B3-3, Income Assessment for additional information about specific tax return requirements. Learn more about calculating your DTI ratio. Inflation -adjusted annuities are typically offered by. For additional information, see FAQs: Using Income from Retirement and Employment-related Assets and B3-3. 1-09, Other Sources of Income. Usually, non-taxable income is worth 25% more for mortgage qualifying. The DU validation service offers lenders an opportunity to deliver loans with more certainty. Points and Fees Limitations. Annuity Income Watch Me! Annuity & Retirement Distribution Answer Me! Foundations On-Demand NOT YOUR ORDINARY INCOME 13 Notes: Watch Me! Annuity & Retirement DistributionConclusion. The following table provides the requirements for employment-related assets that may be used as qualifying income. Chapter B3-2: Desktop Underwriter (DU) Chapter B3-3: Income Assessment. interest and dividend income (unless other evidence that asset will be depleted) military income. There may be more coverage offerings. All of the above calculations must be compared with the documented year-to-date base earnings. Need additional assistance options for your down payment. Income or Loss Reported on IRS Form 1065 or IRS Form 1120S, Schedule K-1. The following table provides verification requirements for retirement, government annuity, and pension. . 1 The risk profile of this loan casefile appears to meet Fannie Mae's guidelines. Continuity of Income. Annuities are just one of the many financial products designed to offer income for retirees. Guide Resources. Lenders are responsible for making the final determination of whether the borrower’s specific income source has a defined expiration date. Earnings may not be used unless the borrower owns 100% of the business. 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 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. Maximum LTV, CLTV, and HCLTV Ratio. 1, Employment and Other Sources of Income. Contact your account team or call 1-800-2FANNIE (1-800-232-6643)and press option 1 for technology support. Fannie Mae accepts a maximum of 36% ratio between total monthly income to total debt. In this case, add the $200,000 and $700,000 together. DU loan casefiles: DU will determine the reserve requirements based on the following: Two months' reserves for a second home transaction. Joint life annuities are a valuable financial tool for couples seeking a consistent income stream in retirement. You can also use the income from annuities, an investment vehicle that pays out regular monthly payments, when applying for a mortgage. This is the denominator of the loan's Debt-to-Income Ratio. Refer to Selling Guide Announcement SEL-2012-13 for details. Fannie Mae has scheduled a conference call to discuss the company's results at 8:00 a. 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:. Retirement, Government Annuity, and Pension Income . Note: Ask Poli is an Artificial Intelligence powered search tool. Q2. 501. 1-02, Standards for Employment Documentation. The lender must verify the borrower's income in accordance with Section B3–3. 2 (d) for additional documentation that may be required based on employment characteristics. 01. If the property has resale restrictions, see B 5-5. 70%. When submitting rental income to DU for an investment property: The lender should calculate the net rental income amount for each property and enter the amount (either positive or negative) in the Net Monthly Rental Income in Section 3. 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. Income property, 80 percent, The type of mortgage loan that best fits the asset-liability. Employment-Related Assets as Qualifying Income. PART B Origination thru Closing. 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. While every. The lender must obtain. An annuity is a financial product that pays out a series of income payments over time, typically used as a retirement income source or strategy. Note: The tax-exempt nature of some of the above payments should also be considered. Subpart B1: Loan Application Package. 1, Employment and Other Sources of Income. 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. Example. So, $1,000 a month in child support counts as $1,250 a month. 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. Top Lender Questions on Federal Income Tax Returns, Installment Agreements, and Transcripts . The lender must obtain. 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. 2$7. To calculate asset depletion income for Fannie Mae, you will need to follow these steps: 1. If the asset (s) is jointly owned, all owners. Standard Fannie Mae. The lender must verify employment income for all borrowers whose income is used to qualify for the mortgage loan. equivalent to 25% of the non-taxable income to the borrower’s income. For mortgages originated for sale to the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation. 2022. 1, Employment and Other Sources of Income. General Information. Perez Senior Vice President andSelling Guide Announcement (SEL-2023-10) . The statement must specify the income type, amount and frequency of the payment, and include confirmation of the initial start date. Total qualifying income = supplemental income plus the temporary leave income. 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. 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. This topic contains general information for income, including: Stable and Predictable Income. Lender must document 3–year continuance. 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. Annuities can offer guaranteed income, which is particularly. The borrower's monthly gross income is defined as the borrower's monthly income amount before any payroll deductions and includes the following items,. 1-01, General Income Information,. Chapter B3-4: Asset Assessment. The inter vivos revocable trust must be established by one or more natural persons, solely or jointly. Sign-In Seller/Servicer ID Business Role: Looking for the servicing policy? Not a customer?. 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 . Fannie Mae considers sweat equity an acceptable source of funds for HomeReady loans when the borrower participates in an affordable housing purchase program run by an eligible. Asset Requirements. Download PDF Guide (Published: November 01 2023) Search the Guide (For best result, pose your search like a question. Tip income can be verified using a Request for Verification of Employment (Form 1005 or Form 1005 (S)), or recent paystubs and IRS W-2 forms. The lender must verify the borrower’s ownership of the account or asset. Q3. 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. Insights, products, and technology to help you grow your business. 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. , ET. When you purchase an annuity, you can choose from several payout. Refer to the Variable Income section of 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%. 501. Chapter B3-1: Manual Underwriting. Which of the following is a guideline used by Freddie Mac when determining if a loan is conforming. 9 $9. published by . Selling Guide Announcement (SEL-2020-07) Dec. 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. Continuity of Income. Lenders must verify this income and ensure it will continue for at least three years from the date of the mortgage application. For additional information, see B3-3. The lender may use the Request for Verification of Employment (Form 1005) to document income for a salaried or commissioned borrower. If the borrower will have seven to ten financed properties, the mortgage loan must. DU loan casefiles: DU will determine the reserve requirements based on the following: Two months’ reserves for a second home transaction. 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. 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). monthly income from annuities, insurance policies, retirement funds, pensions, disability or death benefits, rental income, and other income such as. Lender must document 3–year continuance. Home, 60 percent. monthly income from annuities, insurance policies, retirement funds, pensions, disability or death benefits, rental. Funds needed to complete the. Income from Other Sources have retirement income from two different sources, sum the amounts and list the total once on the form as “Retirement”). PART B Origination thru Closing. The new, user friendly Seller/Servicer Guide will make it significantly easier for you and your team to find, understand and share critical information. If the Net Monthly Rental Income is a “breakeven” amount, the user must enter either $0. Social Security, VA, or other government retirement or annuity. General Information. a copy of signed federal income tax return, an IRS W-2 form, or. citizens. 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. Minor (non-substantive) wording, number, and heading changes are not marked. 101, Appendix. Social Security, VA, or other government retirement or annuity. Documentation for military income calculation for a VA loan may differ significantly. 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"). regulator responsible for overseeing Fannie Mae and Freddie Mac, issued the Duty to Serve UnderservedAn annuity is a contract between an individual and an insurance company, wherein the individual invests a sum of money in exchange for a series of periodic payments. ).