Stable and Predictable Income. 25 to determine the Borrower’s monthly gross. 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. Requirement. (Hourly gross pay x average # of hours worked per week x 52 weeks) / 12 months. Stable and Predictable Income. Regular income amount: $6,000 per month. 1-09, Other Sources of Income. monthly income from annuities, insurance policies, retirement funds, pensions, disability or death benefits, rental income, and other income such as. " Selling Guide: Fannie Mae Single Family. Fannie Mae customers! Get answers to your Servicing Guide & policy questions with Fannie Mae's AI-powered search tool. current receipt of trust income with one month’s bank statement or other equivalent document. Fannie Mae’s underwriting guidelines emphasize the continuity of a borrower’s stable income. When you purchase an annuity, you can choose from several payout. Approximately 78% of our participants preferred to pay $100,000 for lifelong cash payments immediately at retirement than to pay. 2$7. Refer to Selling. Base Pay (Salary or Hourly) Income. The following table provides the requirements for employment-related assets that may be used as qualifying income. 49% Total Loan Amount $205,0 0 0. ) The remaining 25% of the gross rent will be absorbed by vacancy losses and ongoing. Our team is available seven days a week and are experts at. 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. Are a first-time homebuyer. 1-09, Other Sources of Income in December 2020. The documentation required for each income source is described below. 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. PART B Origination thru Closing. 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. Ask Poli provides answers to all your selling policy questions straight from the source. When the borrower owns property – other than the subject property – that is rented, the lender must document the monthly gross (and net) rental income with the borrower’s most recent signed federal income tax return that includes Schedule 1 and Schedule E. equivalent to 25% of the non-taxable income to the borrower’s income. 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. Fannie Mae Homestyle Loan . Items required for a complete BRP : Form 710, or equivalent, that is completed in its entirety. The amount of funds that will be used for down payment, closing costs. 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. 7 $5. Be sure to consult your automated underwriting system response and program descriptions. The payments from an ordinary annuity can be fixed or variable, and it has the potential to generate compound interest and. is employed by family members (two years’ returns); is employed by interested parties to the property sale or purchase (two years’ returns); The lender must verify the ownership of the account and confirm that the account is vested and allows withdrawals regardless of current employment status. Determining the Need for Federal Income Tax Returns. The stable and reliable flow of income is a key consideration in mortgage loan underwriting. 0 0 Actual/Estimated. Borrowers relying on overtime or bonus income for qualifying purposes must have a history of no less than 12 months to be considered stable. Weekly. 1-02, Standards for Employment Documentation. 1-09, Other Sources of Income. 02 B Business Income (including Rental Value) Insurance. Schedule K-1 Income For borrowers who have less than 25% ownership of a partnership, S corporation, or limited liability company (LLC), ordinary income, net rental real estate income, and other net rental income reported on IRS Form 1065 or IRS Form 1120S, Schedule K-1 may be used in qualifying the borrower provided the lender can. an IRS 1099 form. Cash Value of Life Insurance and Debt-to-Income Ratios. Effective June 12, 2023, the 2023 area median income estimates (AMIs) will be implemented in Desktop Underwriter ® (DU ® ), HomeReady ® Application Programming Interfaces (API), Loan Delivery, the Area Median Income Lookup Tool, and published on the HomeReady ®, RefiNow ®, and Duty to. Hourly. 2. 101, Appendix. Total verified liquid assets: $30,000. Social Security, VA, or other government retirement or annuity. income Effective immediately, PennyMac is aligning with Fannie Mae’s updates to the requirements related to the use of retirement, government annuity, and. The lender must obtain. Fannie Mae Cash-Out Refinance . Certain components of the loan file – income, employment, and assets – are eligible for validation by DU using electronic verification reports obtained from vendors. Funds needed to complete the transaction: $18,000. Fannie Mae Guidelines Updates On Income Requirements. Requirement. Freddie Mac Home (opens in new window) Single-Family Division (opens in new window). Underwriting Borrowers. An annuity is a financial product designed to pay a stream of income in the future. Subpart B3: Underwriting Borrowers. These annuities are. Our sample generally desired immediate over deferred annuities. *****income as long as the probability of such pay to continue is verified in writing. See B3-3. Choosing an annuity mortgage involves. Guide Resources. 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. Q3. Top Lender Questions on Federal Income Tax Returns, Installment Agreements, and Transcripts . The loan is "secured" on the borrower's property. 1, Employment and Other Sources of Income. 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. The following table provides verification requirements for notes receivable income. 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. / Retirement/ Gov't Annuity/ Pension Income; Browse. Borrowers whose qualifying income is greater than 50% and is less than or. Fannie Mae, October 2. citizens. 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. This research was conducted by Fannie Mae’s Economic and Strategic Research (ESR) and Credit Portfolio Management Analytics (CPM Analytics) groups. Reference: For information about non-taxable income, see HUD 4155. a cash-out refinance transaction with a DTI ratio greater than 45%. Chapter B3-4: Asset Assessment. The secondary market purchases loans from. The initial adjustment period in months must align with the initial fixed-rate period in years. Example. Schmidt also oversees the company’s alternative asset investing and the hedging of variable annuity guarantees and chairs the Senior Asset Liability Committee. an IRS 1099 form. Mortgage Lending and Non-Borrower Household Income A Fannie Mae Housing Working Paper December 29, 2015 Walter Scott, Senior Economist . / Retirement/ Gov't Annuity/ Pension Income; Browse. The lender must obtain. b. 12 CFR 30, Appendix A, and 12 CFR 160. DU loan casefiles: DU will determine the reserve requirements based on the following: Two months’ reserves for a second home transaction. " Selling Guide: Fannie Mae Single Family. Note: Ask Poli is an Artificial Intelligence powered search tool. See B3-3. Determine the net documented assets. Home, 60 percent. 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. Welcome to an improved Seller/Servicer Guide. Fannie Mae’s underwriting guidelines emphasize the continuity of a borrower’s stable income. The lender may use the Request for Verification of Employment (Form 1005) to document income for a salaried or commissioned borrower. NOTE: Income must be reported to Fannie Mae for all high LTV refinance loans. Selling Guide Announcement (SEL-2020-07) Dec. E. But, say the borrower has existing debts. Determining. Servicers must refer to Section 9202. If the borrower will return to work as of the first mortgage payment date, the. Documentation Requirements. As. Retirement, Government Annuity, and Pension Income . 02 D Boiler and Machinery / Equipment / Mechanical Breakdown. Freddie Mac HomeOne ℠. If the asset (s) is jointly owned, all owners. an IRS 1099 form. Need additional assistance options for your down payment. 70%. 1-08, Rental Income for further information, and B5-6-02, HomeReady Mortgage Underwriting. 3-13 , and Selling Guide section B5-6-02. Prepare Necessary Documentation. Fannie Mae Reports Net Income of $12. copies of the current lease agreement (s) if the borrower can document a qualifying exception (see Reconciling Partial or No Rental. Each ARM plan must offer lifetime and per. 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. 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:. Chapter 4, Section E HUD 4155. Note: Some of these asset types. Our sample generally desired immediate over deferred annuities. These annuities provide investors with the opportunity to generate returns based on the performance of underlying investments, while also providing a guaranteed income stream during retirement. Regular income amount: $6,000 per month. Launch Ask Poli for Sellers . PART A Doing Business with Fannie Mae. Joint life annuities are a valuable financial tool for couples seeking a consistent income stream in retirement. the lender must evaluate it according to Fannie Mae’s guidelines for income received from a partnership or an S corporation. 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 inter vivos revocable trust must be established by one or more natural persons, solely or jointly. 1-09, Other Sources of Income . The lender must verify the borrower's income in accordance with Section B3–3. Verify that the income can be expected to continue for a minimum of three years from the date of the mortgage application. Lenders have difficulty using income from the growing number of gig economy workers* to. The total qualifying income that results may not exceed the borrower's regular employment income. 80% if the owner of the asset (s) being used to qualify is at least 62 years old at the time of closing. Fannie Mae, October 2 2019. 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. 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. 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. B3-3. 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. HomeReady permits lower credit scores. Yes. 1 4. Fannie Mae has also updated some fixed income guidelines. 3-01, Fannie Mae Short Sale. Documenting Rental Income from Property Other Than the Subject Property. Chapter B3-2: Desktop Underwriter (DU) Chapter B3-3: Income Assessment. The lender must obtain. Note: Ask Poli is an Artificial Intelligence powered search tool. 02 D Boiler and Machinery / Equipment / Mechanical Breakdown Insurance. The lender must verify the borrower's income in accordance with Section B3–3. The value of the asset and any related documentation must meet the requirements. 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. 1 $3. Non-liquid assets do not have to be verified, and will not be identified in a verification message. 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. There are five main types of pension annuities: fixed, variable, indexed, immediate, and deferred. Tax returns are required if the borrower. All of the above calculations must be compared with the documented year-to-date base earnings. This topic contains general information for income, including: Stable and Predictable 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. 9 Billion for 2022 and $1. The following table provides verification requirements for retirement, government annuity, and pension income. This requirement is. 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. 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. 1, Employment and Other Sources of Income. 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). 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. Standard Fannie Mae. FANNIE & FREDDIE INCOME DOCUMENTATION FANNIE MAE DU/FREDDIE MAC LP These are common forms of income we see. Minor (non-substantive) wording, number, and heading changes are not marked. 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. 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. The lender must obtain. Contact your account team or call 1-800-2FANNIE (1-800-232-6643)and press option 1 for technology support. If the borrower will have seven to ten financed properties, the mortgage loan must. Chapter B3-4: Asset Assessment. This. mortgage credit certificates. Retirement income: Income from retirement accounts (like a 401(k), IRA, 403(b), etc. Maximum LTV, CLTV, and HCLTV Ratio. $1. 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. There may be more coverage offerings. For manually underwritten loans, Fannie Mae’s maximum total DTI ratio is 36% of the borrower’s stable monthly income. 25% Fannie. Lenders must verify this income and ensure it will continue for at least three years from the date of the mortgage application. The statement must specify the income type, amount and frequency of the payment, and include confirmation of the initial start date. 501. It's best to gather these documents ahead of time to streamline the application process. 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. This FAQ document provides responses to common questions related to Fannie Mae’s property eligibility and appraisal policies. Allowable Age of Credit Documents. Social Security, VA, or other government retirement or annuity. 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. 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. an IRS 1099 form. If you have additional questions, Fannie Mae customers can visit Ask Poli to get information from other Fannie Mae published. LTV. 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. 50% Loan Term 180. Fannie Mae and Freddie Mac offer conventional mortgages with low down payments and homeownership education. The lender must verify the borrower’s ownership of the account or asset. Forbearance Plan . Standard Freddie Mac. Earnings may not be used unless the borrower owns 100% of the business. See B3-3. Fannie Mae customers can visit Ask Poli to get information from other Fannie Mae published. For additional information, see B3-3. (Biweekly gross pay x 26 pay periods) / 12 months. 2-06, Fannie Mae Flex. not required unless the borrower requests a release of liability. If I have a question on how to document income, I Google “Fannie Mae requirement for…” or “Freddie Mac Doc Matrix”. For purposes of these requirements, “total points and fees” and “total loan amount” must be calculated in accordance with Regulation Z (12 CFR § 1026. Fannie Mae Manufactured Community Housing Loan . Bonus pay at Fannie Mae Corporation ranges from $8,000 to $8,000 annually among. Fannie Mae’s underwriting guidelines emphasize the continuity of a borrower’s stable income. com. Please take a few minutes to watch a short training video. First payment date: July 1. current receipt of trust income with one month’s bank statement or other equivalent document. Lender must document 3–year continuance Introduction. An annuity due is a type of annuity that is commonly used in personal finance and investing. 501. an IRS 1099 form. for very low-, low-, and moderate-income families in three specific underserved markets: manufac-tured housing, affordable housing preservation, and rural housing. The Guaranteed Minimum Withdrawal Benefit (GMWB) is a feature of certain annuity contracts. 1, Employment and Other Sources of Income. Example. Section 5303. Lender must document 3–year continuance. All of the above calculations must be compared with the documented year-to-date base earnings. 4 for additional information about income calculation requirements and guidance. 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. Fannie Mae. Temporary leave income: $2,000 per month. 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. , ET,. “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. 2-06, Fannie Mae Flex. Carlos T. For example, a "3-year ARM" must have an initial fixed period of 36 months, and a "5-year ARM" must be 60 months. monthly income from annuities, insurance policies, retirement funds, pensions, disability or death benefits, rental income, and other income such as. 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. Social Security, VA, or other government retirement or annuity. 1-01, General Income Information (08/07/2019) CONFIDENTIAL Calculating Income 25 Documentation Fannie Mae Selling Guide Check For Investor Overlays For Timing Of Verbal VOEOpting for a lottery annuity provides several advantages, including a guaranteed income stream and reduced tax burden. In addition, evidence of current receipt of the income must be obtained in compliance with the Allowable Age of Credit Documents policy, unless. . 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. mortgage credit certificates. Income documentation must be no more than 90 days old as of the date the servicer first determines that the borrower submitted a complete BRP or at the time of a. To calculate asset depletion income for Fannie Mae, you will need to follow these steps: 1. Temporary leave income: $2,000 per month. S. Total verified liquid assets: $30,000. 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. Fannie Mae Gift of Equity . Q2. If the property has resale restrictions, see B5-5. The lender must assess repayment or additional obligation considerations to determine the impact. In some cases, the total payout through an annuity can exceed the amount received as a lump sum. 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. Guide Resources. 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. Note: The tax-exempt nature of some of the above payments should also be considered. To learn more about sweat equity, click here. 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. PART B Origination thru Closing. 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 verify the borrower’s ownership of the account or asset. If the source of your income is not listed, ask your Lender for guidance. How Underwriters Calculate Income on Freddie Mac Asset Depletion Mortgages. While every. This verification can be provided by the borrower, by the borrower’s employer, or by a third-party employment verification vendor. Tax returns are required if the borrower. Fannie Mae's declining bonus income refers to a specific policy within Fannie Mae's mortgage lending guidelines that focuses on the pattern of a borrower's bonus income over time. Income from Other Sources have retirement income from two different sources, sum the amounts and list the total once on the form as “Retirement”). The lender must verify the borrower's income in accordance with Section B3–3. When funds from retirement accounts are used for reserves, Fannie Mae does not require the funds to be withdrawn from the account (s). the amount and duration of the borrower's “temporary leave income,” which may require multiple documents or sources depending on the type and duration of the leave period; and. 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. 02 C Ordinance or Law Insurance. need to obtain the final 2018 year-to-date paystub to accurately calculate income. Regular income amount: $6,000 per month. The servicer must process a transfer of ownership in accordance with Chapter D1-4, Transfers of Ownership. 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. All other paystub requirements remain unchanged. 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. Launch Ask Poli for Sellers . The primary beneficiary of the trust must be the individual (s) establishing the trust. For additional information, see B3-3. The stable and reliable flow of income is a key consideration in mortgage loan underwriting. . Stable and Predictable Income. 12 CFR 30, Appendix A, and 12 CFR 160. 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. Income property, 75 percent. Employment-Related Assets as Qualifying 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. Retirement income must be verified from the former employer, or from Federal tax returns. If the Net Monthly Rental Income is a “breakeven” amount, the user must enter either $0. See B3-3. The below provides the verification requirements for long-term disability income. Chapter B3-1: Manual Underwriting. Obtain a copy of the borrower’s disability policy or benefits statement from the benefits payer (insurance company, employer, or. Sources "B3-3. An income annuity is a financial product designed to provide a steady stream of income during retirement. Verification of Long-Term Disability 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. When you purchase an annuity, you can choose from several payout. 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. Lender must document 3–year continuance. Variable Annuity: In a variable annuity, the premium is. When consecutive credit documents are in the loan file, the most recent document. Asset Requirements. Note: Some of these asset types. D. Documentation for military income calculation for a VA loan may differ significantly. Retirement, Government Annuity, and Pension Income • Fannie DU – letter from organization, award letter, tax returns, W2 or 1099 OR proof of currentThe Fannie Mae Income Limits 2023 refer to the maximum annual earnings a borrower can have to qualify for certain Fannie Mae loan products. This topic contains general information for income, including: Stable and Predictable Income. 1-09, Other Sources of Income . Biweekly. Develop an average of the income received for the most recent two years. 1-05, Secondary Employment Income (Second Job and Multiple Jobs) and Seasonal Income (12/15/2021). the borrower's recent Leave and Earnings Statement (LES) for military income and entitlements. DU does not consider the amount of non-liquid assets. part-time job, second job, or. The lender must verify the borrower's income in accordance with Section B3–3. For all Servicing Guide resources, please visit guide. It can be a useful tool for budgeting, meeting financial obligations, and planning for retirement. CONFIDENTIAL Fannie Mae Selling Guide Continuance of Income Calculating Income 24 See B3-3. 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. Date borrower will begin receiving regular employment income: November 1. 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. an IRS 1099 form. Annuity Income Watch Me! Annuity & Retirement Distribution Answer Me! Foundations On-Demand NOT YOUR ORDINARY INCOME 13 Notes: Watch Me! Annuity & Retirement DistributionConclusion. 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. 1-09, Other Sources of Income. Variable Income. The documentation must support the history of receipt, if applicable, and the amount, frequency, and duration of the income. The total qualifying income that results may not exceed the borrower's regular employment income. For details, see Selling Guide section B3-4. Temporary leave income: $2,000 per month. Income documentation must be no more than 90 days old as of the date the servicer first determines that the borrower submitted a complete BRP or at the time of a subsequent evaluation for another workout option. For additional information, see FAQs: Using Income from Retirement and Employment-related Assets and B3-3. 1-09, Other Sources of Income. a cash-out refinance transaction with a DTI ratio greater than 45%. Updated November 2023. 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. Twice monthly gross pay x 2 pay periods. Ask Poli is an Artificial Intelligence powered search tool. Cash Value of Life Insurance and Debt-to-Income Ratios. 9 $9. rental income.