Updated: 05/03/2023. Obtain the following documents: a completed Form 1005, or. 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. HUD, the parent of FHA, allows fixed-income borrowers to gross up 115% of their social security income. the conditions of eligibility for these loans, and features such as annuity income calculations used in these loans. 1, Employment and Other Sources of 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). For loan casefiles underwritten through DU, the maximum allowable DTI ratio is. Requirement. 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. . 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. Chapter B3-1: Manual Underwriting. 2-01, Underwriting Factors and Documentation for a Self-Employed Borrower. 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. Fannie Mae vs Freddie Mac vs Ginnie Mae . The lender must verify the borrower's income in accordance with Section B3–3. For additional information, see FAQs: Using Income from Retirement and Employment-related Assets and B3-3. It provides predictability and stability but requires careful consideration, given its long-term commitment and potential for higher initial payments. Temporary leave income: $2,000 per month. By ensuring payments until the last surviving annuitant passes away, these annuities offer financial security and peace of mind for the surviving spouse. For example, a "3-year ARM" must have an initial fixed period of 36 months, and a "5-year ARM" must be 60 months. The lender must verify the borrower's income in accordance with Section B3–3. 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. Funds needed to complete the. Note: For loan casefiles that are not underwritten as a. 4155. 02 B Business Income (including Rental Value) Insurance. 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. 1-09, Other Sources of Income. Fannie Mae Home Price Index . If the asset (s) is jointly owned, all owners. Hourly. 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. Insights, products, and technology to help you grow your business. For additional information, see B3-4. 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. Annuity payout options determine how and when the funds invested in an annuity contract are paid out to the annuity holder. not required unless the borrower requests a release of liability. The lender may use the Request for Verification of Employment (Form 1005) to document income for a salaried or commissioned borrower. The Selling Guide has been updated to include changes to the following:. Annuities can offer guaranteed income, which is particularly. Inflation -adjusted annuities are typically offered by. Fannie Mae accepts a maximum of 36% ratio between total monthly income to total debt. 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. 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 statement must specify the income type, amount. Section 5303. 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 funds from retirement accounts are used for reserves, Fannie Mae does not require the funds to be withdrawn from the account (s). Temporary leave income: $2,000 per month. a. For all Servicing Guide resources, please visit guide. If the retirement assets are in the form of stocks, bonds, or mutual funds, the account must meet the requirements of B3-4. monthly income from annuities, insurance policies, retirement funds, pensions, disability or death benefits, rental income, and other income such as. It promotes financial stability, protects against overspending, and enables long-term financial planning. Ask Poli is an Artificial Intelligence powered search tool. If the lender enforces a maximum debt-to-income ratio of 36 percent, the maximum possible mortgage payment in this scenario is $2,350. 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. the borrower's recent Leave and Earnings Statement (LES) for military income and entitlements. These can include various sources such as child support, alimony, social security income, VA benefits, interest income, 401K/pension income, or any other documented income that is deemed non-taxable. NOTE: Income must be reported to Fannie Mae for all high LTV refinance loans. The lender must verify the borrower's income in accordance with Section B3–3. 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. 1, Employment and Other Sources of Income. The purpose of scrutinizing declining bonus. It can be a useful tool for budgeting, meeting financial obligations, and planning for retirement. FANNIE & FREDDIE INCOME DOCUMENTATION FANNIE MAE DU/FREDDIE MAC LP These are common forms of income we see. Variable Annuity: In a variable annuity, the premium is. Minus 10% of $500,000 ($500,000 x . Freddie Mac Form 65 • Fannie Mae Form 1003 URLA Effective 1/2021• Instructions Revised 10/2022 1e. When used for reserves, 100% of the value of the assets may be considered, and liquidation is not required. 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. If the borrower will return to work as of the first mortgage payment date, the. Our sample generally desired immediate over deferred annuities. 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. 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 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. Debt -to-Income Ratio 30. Sources "B3-3. 2-02, Loans with Resale Restrictions: Loan and Borrower Eligibility, for additional requirements. The lender must verify the borrower's income in accordance with Section B3–3. 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. an IRS 1099 form. 3-13 , and Selling Guide section B5-6-02. Subpart B1: Loan Application Package. 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). 2022. Requirement. The stable and reliable flow of income is a key consideration in mortgage loan underwriting. PART A Doing Business with Fannie Mae. 1-09, Other Sources of Income in December 2020. 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. All of the above calculations must be compared with the documented year-to-date base earnings (and past year earnings, if applicable) to. Fannie Mae has also updated some fixed income guidelines. The following table provides verification requirements for retirement, government annuity, and pension. Variable 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. Lenders must verify this income and ensure it will continue for at least three years from the date of the mortgage application. Published May 3, 2023Disability Income — Long-Term. $1. Guide Resources. Single-Family Division. monthly income from annuities, insurance policies, retirement funds, pensions, disability or death benefits, rental. 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. Total qualifying income = supplemental income plus the temporary leave income. The servicer must determine the borrower’s housing expense-to-income ratio as outlined in Evaluating a Borrower’s Ability to Make a Cash Contribution in D2-3. If income from a government annuity or pension account will begin on or before the first payment date. 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. 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. For information related to employment offers or contracts, refer to B3-3. (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. interest and dividend income (unless other evidence that asset will be depleted) military income. The version of Schedule K-1 that is utilized to report a borrower’s share of income (or loss) is based on how the business reports earnings for tax purposes:. ** The 2016 total loan volume per lender used here includes the best available annual origination information from Fannie Mae, Freddie Mac, and Marketrac. an IRS 1099 form. Which statement most accurately describes the role and function of Ginnie Mae in the secondary mortgage market. Income property, 75 percent. Chapter B3-2: Desktop Underwriter (DU) Chapter B3-3: Income Assessment. Using Nontaxable Income to Adjust the Borrower’s Gross 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. Maximum LTV, CLTV, and HCLTV Ratio. Borrowers whose qualifying income is less than or equal to 50% of county area median income may qualify for a Very Low Income Loan. 50% Loan Term 180. ) The remaining 25% of the gross rent will be absorbed by vacancy losses and ongoing. The stable and reliable flow of income is a key consideration in mortgage loan underwriting. Subpart B3: Underwriting Borrowers. the conditions of eligibility for these loans, and features such as annuity income calculations used in these loans. But, say the borrower has existing debts. 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. 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. The messages used to indicate if the loan casefile may be eligible towards Fannie Mae’s low-income purchase goal, very low-. Explore Tools and Information to Help with Your Housing Journey. 1-09, Other. 2-01, Underwriting Factors and Documentation for a. Ask Poli provides answers to all your selling policy questions straight from the source. The stable and reliable flow of income is a key consideration in mortgage loan underwriting. Home, 80 percent. an IRS 1099 form. 3-01,Stocks, Stock Options, Bonds, and Mutual Funds. 1. Maximum LTV, CLTV, and HCLTV Ratio. Announcement SEL-2023-10: Selling Guide Updates. 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. An inflation -adjusted annuity is a financial product that provides a stream of income that increases with inflation. This topic contains general information for income, including: Stable and Predictable Income. Reference: For information about non-taxable income, see HUD 4155. Example. 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 . These limits vary based on location and property size. Chapter B3-4: Asset Assessment. 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. Subpart B3: Underwriting Borrowers. For mortgages originated for sale to the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation. Temporary Leave Income. Asset Requirements. g. Subpart B1: Loan Application Package. 1, Employment and Other Sources of Income. m. 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. This income can offset certain weaknesses that may be. The primary beneficiary of the trust must be the individual (s) establishing the trust. Fannie Mae Cash-Out Refinance . mortgage credit certificates. Fannie Mae may revoke these limited permissions by written notice to any or all Fannie Mae-approved users. Immediate annuities are taxed as income when payments are received, while deferred annuities offer tax-deferred growth during the accumulation phase. Employment-Related Assets as Qualifying 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. Freddie Mac Home (opens in new window) Single-Family Division (opens in new window). 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. Annuities are issued by insurance companies. The following table provides verification requirements for retirement, government annuity, and pension income. PART A Doing Business with Fannie Mae. Refer to the applicable topics in Chapter B3-3, Income Assessment for additional information about specific tax return requirements. Going forward, all commission income will be treated the same, and individual tax returns (or tax. The lender or servicer must ensure that the insurer, policy, and coverage meet Fannie Mae's requirements. The date of the completed form must comply with B1-1-03, Allowable Age of Credit Documents and Federal Income Tax Returns . The policy that permitted this type of income was eliminated in 2009. Fannie Mae is updating this guidance to require that for Fannie Mae HAMP modifications, the servicer develop an “adjusted gross income” for. an IRS 1099 form. Fannie Mae’s underwriting guidelines emphasize the continuity of a borrower’s stable income. Continued on next page. Total qualifying income = supplemental income plus the temporary leave income. Retirement income must be verified from the former employer, or from Federal tax returns. , ET,. 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. part of the credit review process, or. A mortgage loan or simply mortgage (/ ˈ m ɔːr ɡ ɪ dʒ /), in civil law jurisdictions known also as a hypothec loan, is a loan used either by purchasers of real property to raise funds to buy real estate, or by existing property owners to raise funds for any purpose while putting a lien on the property being mortgaged. 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 below provides the verification requirements for long-term disability income. Q2. See B3-3. If I have a question on how to document income, I Google “Fannie Mae requirement for…” or “Freddie Mac Doc Matrix”. This. Certain components of the loan file – income, employment, and assets – are eligible for validation by DU using electronic verification reports obtained from vendors. Guide Resources. The Guaranteed Minimum Withdrawal Benefit (GMWB) is a feature of certain annuity contracts. What are the income eligibility requirements for HomeReady borrowers? Effective July 20, 2019, the income limit for all HomeReady loans is 80% of area median income (AMI) for the property’s location, including properties in low-income census tracts. (Hourly gross pay x average # of hours worked per week x 52 weeks) / 12 months. Introduction. Usually, non-taxable income is worth 25% more for mortgage qualifying. 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. S. If the borrower will return to work as of the first mortgage payment date, the. Launch Ask Poli for Sellers . 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. If the Net Monthly Rental Income is a “breakeven” amount, the user must enter either $0. Refer to Selling Guid e Announcement 09-19 for more information. Schmidt also oversees the company’s alternative asset investing and the hedging of variable annuity guarantees and chairs the Senior Asset Liability Committee. “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. 1 The risk profile of this loan casefile appears to meet Fannie Mae's guidelines. Launch Ask Poli for Sellers . Available liquid reserves: $12,000. 101, Appendix. Top Lender Questions on Federal Income Tax Returns, Installment Agreements, and Transcripts . All guidance specific to COVID-19 will be communicated through Lender Letters . Total qualifying income = supplemental income plus the temporary leave income. Both offer flexible underwriting and low-down payments, with unique benefits and limitations. Multiply the amount of the monthly net income by 1. Mortgage qualification requirements for retirees: Assets. the borrower's recent Leave and Earnings Statement (LES) for military income and entitlements. Borrowers whose qualifying income is less than or equal to 50% of county area median income may qualify for a Very Low Income Loan. Q3. Guide Resources. Annuities are just one of the many financial products designed to offer income for retirees. Income Assessment. (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. Determining the Need for Federal Income Tax Returns. Annuity payout options determine how and when the funds invested in an annuity contract are paid out to the annuity holder. This blog covers just some of the basics about establishing income continuance. For purposes of these requirements, “total points and fees” and “total loan amount” must be calculated in accordance with Regulation Z (12 CFR § 1026. Stable and Predictable Income. Gift Funds. 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. rental income. They call this practice “grossing up” income because you. b. LTV. d. 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. Are a first-time homebuyer. 1-02, Standards for Employment Documentation. The lender must verify the borrower's income in accordance with Section B3–3. A borrower of a mortgage loan secured by a principal residence or second home may use funds received as a personal gift from an acceptable donor. Guide Resources. 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. (Biweekly gross pay x 26 pay periods) / 12 months. If the borrower will have seven to ten financed properties, the mortgage loan must. The Guaranteed Minimum Withdrawal Benefit (GMWB) is a feature of certain annuity contracts. the business provides more than $12 billion of protected income payments. If the asset (s) is jointly owned, all owners must. 7 $3. 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. 2 (b) for additional information about base non-fluctuating and fluctuating hourly earnings types. 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. The lender warrants that the borrower is employed at the time the loan is delivered to Fannie Mae. com Fannie Mae Mae has just issued an update to the Selling Guide (SEL-2011-04) that affects underwriting of loans as follows: Deferred Student Loans While it has been Fannie Mae’s policy to include payments for deferred student loans in the DTI, Fannie Mae has. 501. 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. What are Fannie Mae’s expectations of a seller or servicer if its mortgage operation is impacted due to a. Document the following: a minimum 24-month history of trust income by obtaining copies of the borrower’s signed federal income tax returns for the most recent two years, and. income Effective immediately, PennyMac is aligning with Fannie Mae’s updates to the requirements related to the use of retirement, government annuity, and. 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. 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. 1-09, Other Sources of Income. Fannie Mae customers! Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. There are five main types of pension annuities: fixed, variable, indexed, immediate, and deferred. 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. Servicers must refer to Section 9202. an IRS 1099 form. Retirees often have significant assets, but limited income, so Fannie and Freddie have found ways to help retirees qualify based on their assets. For more information, see B3-3. monthly income from annuities, insurance policies, retirement funds, pensions, disability or death benefits, rental income, and other income such as. CASH FLOW ANALYSIS (Fannie Mae Form 1084) Instructions. an IRS 1099 form. 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. The value of the asset and any related documentation must meet the requirements. Each Lender must determine borrower and loan eligibility in accordance. Fannie Mae customers can visit Ask Poli to get information from other Fannie Mae published. 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. Total verified liquid assets: $30,000. Fannie Mae mortgage originating and underwriting products are easy to use and designed to help you grow your business and meet your borrowers’ needs. 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:. The lender must obtain. 4 Billion for Fourth Quarter 2022. Income from Other Sources have retirement income from two different sources, sum the amounts and list the total once on the form as “Retirement”). This topic contains general information for income, including: Stable and Predictable Income. Total qualifying income = supplemental income plus the temporary leave 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. The lender must verify the borrower’s ownership of the account or asset. This Fact Sheet provides additional guidance to help lenders determine eligibility for non-U. Income property, 80 percent, The type of mortgage loan that best fits the asset-liability. Carlos T. 4 Billion for Fourth Quarter 2022. 5. The stable and reliable flow of income is a key consideration in mortgage loan underwriting. Area median income (AMI) estimates are provided to Fannie Mae by our regulator, the Federal Housing Finance Agency. Documenting Rental Income from Property Other Than the Subject Property. All of the above calculations must be compared with the documented year-to-date base earnings. Fannie Mae does not set a minimum remaining term requirement at the time of loan purchase. See B3-3. 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. 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. The lender must verify employment income for all borrowers whose income is used to qualify for the mortgage loan. All of the following loan parameters must be met in order for employment-related assets to be used as qualifying income: Loan Parameter. Fannie Mae on Wednesday released its October 2023 update to its Selling Guide, aiming to reflect changes in the mortgage industry, its surrounding regulatory environment and Fannie Mae policy. Note : The policy which required 60% of the vested amount in a retirement account be used was eliminated in November of 2012. Beware of scamsHave less than 20% to put down on your home. The lender must obtain. Document regular receipt of income for the most recent 12 months. 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. For 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. Temporary leave income: $2,000 per month. com. Fannie Mae Reports Net Income of $12. 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 new, user friendly Seller/Servicer Guide will make it significantly easier for you and your team to find, understand and share critical information. 1-01, General Income Information,. / Retirement/ Gov't Annuity/ Pension Income; Browse. E. (See B3-3. Fannie Mae, October 2 2019. (This is referred to as "Monthly Market Rent" on the Form 1007. 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"). Web. PART B Origination thru Closing. Fannie Mae has scheduled a conference call to discuss the company's results at 8:00 a. 2-06, Fannie Mae Flex. Non-taxable income refers to earnings that are exempt from income taxes. Current Employment/Self-Employment and Income Gross Monthly Income Section Enter all income you receive from this employer each month, filling in the applicable line items and TOTAL. Subpart B3: Underwriting Borrowers. 7 $5. Her previous roles included litigation partner at Jenner & Block and general counsel at Fannie Mae. Our sample generally desired immediate over deferred annuities. Chapter B3-2: Desktop Underwriter (DU) Chapter B3-3: Income Assessment. Employment Documentation Provided by the Borrower’s Employer. 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. Twice monthly gross pay x 2 pay periods. 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. b. 70%. 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. Allowable Age of Credit Documents. Fannie Mae customers! Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. Social Security, VA, or other government retirement or annuity. The lender must obtain all other employment documentation as required by the Selling Guide. Make sure you have your annuity and tax documents organized before you apply for the loan and you should be well-positioned to qualify. mortgage credit certificates. Monthly Income (Sort ID 291) is to be delivered with the combined qualifying gross monthly income of all borrowers. Example. Fannie Mae HomeView® can be used to satisfy the homeownership education. Base Pay (Salary or Hourly) Income. 4 2019QYTD 2023 $0 $10 $20 $30 Base. They can be an essential component of a retirement plan, helping to ensure financial.