10/10/2023

Conventional Loans Update




Fannie Mae updates to underwriting and mortgage loans available

FNMA selling Guide update on rental income, self-employment, manufactured housing, and 2-unit max LTV changes

 

They have aligned the calculation of rental income for the subject property and non-subject property more closely. And they are also mirroring Freddie’s receipt of 2 month’s rental income when using a lease agreement vs 1040s.

Self-Employment can be used with less than a 2-year history BUT the prior year’s taxes must reflect no less than 12 months of self-employment, business or personal.

Existing Manufactured homes now only require the Data Plate OR the HUD Label, not both.

FNMA is also increasing the max allowable LTV on 2-unit primary residences next month.

Good news for conventional lending


Details here in the announcement:

 

https://www.fanniemae.com/newsroom