Fnma Annuity Income Guidelines

The field line item to report pension and annuity now includes retirement income previously reported under the ira distributions field.

Fnma annuity income guidelines. The stable and reliable flow of income is a key consideration in mortgage loan underwriting. No change to age of documentation requirements for military income using and les social security retirement income long term disability mcc public assistance foster care or royalty payments. Chapter b3 3 related to income stability and calculation. Proof of current receipt.

For reduced hours or pay continue to follow the requirements and guidance in the selling guide. Copies of signed federal income tax returns irs w 2 or 1099 forms or. Develop an average income from the last two years according to the variable income section of b3 3 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 he or she owns additional property or assets that can be sold if extra income is. For example for declining variable income the requirements and guidance for declining income trends in the b3 3 1 01 general income information are applicable.

Retirement government annuity and pension income future selling guide announcement policy update pending to eliminate individual tax returns as documentation to evidence pension or annuity income. Due to the federal income tax filing extension grated through july 15 2020 eliminating the following documentation requirements. Refer to b3 3 1 09 other sources of income b3 3 1 05 secondary employment income second job and multiple jobs and seasonal income and b5 6 02 homeready mortgage underwriting methods and requirements for information on how to verify these sources of income. 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 single family seller servicer guide bulletin 2018 6 rev. 04 11 18 effective 06 01 18 page e101 1 the required documentation to verify income from sources disclosed by the borrower s on form 710 mortgage assistance application and the corresponding methods to calculate the income from each source are provided in this exhibit.