This topic contains general information for income, including: Stable and Predictable Income. For mortgages originated for sale to the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation. November 1, 2023. 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. Weekly. 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. The lender must obtain. *****income as long as the probability of such pay to continue is verified in writing. The following table provides the requirements for employment-related assets that may be used as qualifying income. Biweekly. Fannie Mae Reports Net Income of $12. The lender must verify the borrower's income in accordance with Section B3–3. Fannie Mae has learned of a consumer fraud scam involving a person who claims to be a Fannie Mae employee contacting people offering to modify their mortgage and requesting money or gift cards. When funds from retirement accounts are used for reserves, Fannie Mae does not require the funds to be withdrawn from the account (s). Standard Fannie Mae. Biweekly. Home, 60 percent. current receipt of trust income with one month’s bank statement or other equivalent document. Total qualifying income = supplemental income plus the temporary leave income. Down payment. The below provides the verification requirements for long-term disability income. The Servicer must gross up all net income when the Borrower submits bank statements to support the income type. If rental income is claimed on Schedule K-1 can the distributions be used for qualifying purposes? In order to include a positive net rental income received through a partnership or an S corporation in the borrower’s monthly qualifying income, the lender must evaluate it according to Fannie Mae’s guidelines for income received from a. 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. 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. The sum is $900,000. The maximum can be exceeded up to 45% if the borrower meets the credit score and reserve requirements reflected in the Eligibility Matrix . comFannie Mae guidelines. This service is provided for the sole purpose of showing the applicable Area Median Income (AMI) for each applicable census tract. The stable and reliable flow of income is a key consideration in mortgage loan underwriting. Total qualifying income = supplemental income plus the temporary leave income. Fannie Mae. 7$11. The Servicer must gross up all net income when the Borrower submits bank statements to support the income type. ). 501. The following table provides verification requirements for retirement, government annuity, and pension income. Chapter B3-2: Desktop Underwriter (DU) Chapter B3-3: Income Assessment. 501. Refer to the applicable topics in Chapter B3-3, Income Assessment for additional information about specific tax return requirements. To be eligible as a HomeReady mortgage, the total annual qualifying income may not exceed 80% of the AMI for the property’s location. Approximately 78% of our participants preferred to pay $100,000 for lifelong cash payments immediately at retirement than to pay. Stable and Predictable Income. Verification of Retirement, Government Annuity, and Pension Income Document current receipt of the income, as verified by one or more of the following: interest and dividend income (unless other evidence that asset will be depleted) military income. The lender must verify the borrower's income in accordance with Section B3–3. 2$7. Determining. 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. 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. 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. Income payments from deferred annuities are also taxed as income when received. / Retirement/ Gov't Annuity/ Pension Income; Browse. g. Qualifying based on income. For all Servicing Guide resources, please visit guide. Fannie Mae’s underwriting guidelines emphasize the continuity of a borrower’s stable income. If the loan is delivered prior to the lender obtaining a paystub then the borrower must be qualified using a fixed base income only. the lender must evaluate it according to Fannie Mae’s guidelines for income received from a partnership or an S corporation. 02 D Boiler and Machinery / Equipment / Mechanical Breakdown Insurance. The lender must verify the borrower's income in accordance with Section B3–3. Freddie Mac HomeOne ℠. Borrowers whose qualifying income is less than or equal to 50% of county area median income may qualify for a Very Low Income Loan. If the asset (s) is jointly owned, all owners. The documentation required for each income source is described below. 2022. 70%. Allowable Age of Credit Documents. 1-03, Base Pay (Salary or Hourly), Bonus, and Overtime Income. Sources "B3-3. All of the above calculations must be compared with the documented year-to-date base earnings. Form 1007 or Form 1025, as applicable, and either. 1-09, Other Sources of Income in December 2020. An annuity mortgage is a financial product that offers a regular and fixed repayment schedule, including both the principal and interest amount. 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. Chapter B3-1: Manual Underwriting. 3-13 , and Selling Guide section B5-6-02. For additional information, see B3-3. The value of the asset and any related documentation must meet the requirements. The lender must obtain. part-time job, second job, or seasonal income. 1, Employment and Other Sources of Income. 1-02, Standards for Employment Documentation and B3-3. 9 Billion for 2022 and $1. To learn more about income continuance or to discuss your homebuying and mortgage financing options, contact our team by phone at (855)855-4491 or by email at jvmteam@jvmlending. part of the credit review process, or. 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). 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. Fannie Mae, October 2. Calculating Income 23 Fannie Mae Selling Guide. Stable and Predictable Income. Base Pay (Salary or Hourly) Income. Tax returns are required if the borrower. Temporary leave income: $2,000 per month. Chapter B3-4: Asset Assessment. Fannie Mae may revoke these limited permissions by written notice to any or all Fannie Mae-approved users. Perez Senior Vice President andSelling Guide Announcement (SEL-2023-10) . Ask Poli provides answers to all your selling policy questions straight from the source. 1-09, Other Sources of Income in December 2020. Note: For loan casefiles that are not underwritten as a. 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. a. Fannie Mae accepts a maximum of 36% ratio between total monthly income to total debt. Maximum LTV, CLTV, and HCLTV Ratio. Standard Freddie Mac. The lender must obtain. Launch Ask Poli for Sellers . Subpart B2: Eligibility. government annuity, or pension income for john homeowner with one of theSchedule K-1 Income. (Biweekly gross pay x 26 pay periods) / 12 months. The stable and reliable flow of income is a key consideration in mortgage loan underwriting. 2 (d) for additional documentation that may be required based on employment characteristics. 1-09, Other. 1 $11. Area median income (AMI) estimates are provided to Fannie Mae by our regulator, the Federal Housing Finance Agency. 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%. Documentation Requirements. ) (-) $50,000. Each Lender must determine borrower and loan eligibility in accordance. Example. 5. Schmidt also oversees the company’s alternative asset investing and the hedging of variable annuity guarantees and chairs the Senior Asset Liability Committee. For loan casefiles underwritten through DU, the maximum allowable DTI ratio is. a copy of signed federal income tax return, an IRS W-2 form, or. copies of the current lease agreement (s) if the borrower can document a qualifying exception (see Reconciling Partial or No Rental. 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. 4 2019QYTD 2023 $0 $10 $20 $30 Base. The lender must verify the borrower's income in accordance with Section B3–3. Examples of liquid financial assets that can be used for reserves include readily available funds in. All of the following loan parameters must be met in order for employment-related assets to be used as qualifying income: Loan Parameter. Regular income amount: $6,000 per month. It is important to consider the tax implications of your annuity choices and consult with a tax. Fannie Mae guidelines. HomeReady. However, Fannie Mae does allow certain exceptions to this policy for boarder income and properties with accessory units. If the actual amount of federal and state taxes that would generally. Fannie Mae lets lenders use a borrower’s retirement assets in one of two ways to help them qualify for a mortgage. For all mortgage loans (existing and new construction), the credit documents must be no more than four months old on the note date. For additional information, see FAQs: Using Income from Retirement and Employment-related Assets and B3-3. This. 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 discrepancies between information provided. 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. See B3-3. 25% Fannie. 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. the borrower's recent Leave and Earnings Statement (LES) for military income and entitlements. Determine the net documented assets. Guide Resources. In this case, add the $200,000 and $700,000 together. Section 5303. Yes. Chapter B3-4: Asset Assessment. An example of a Fannie Mae loan An example of a Fannie Mae loan. Regular income amount: $6,000 per month. 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. Launch Ask Poli for Sellers . Base Pay (Salary or Hourly) Income. 1-09, Other Sources of Income in December 2020. Annuities are issued by insurance companies. Lenders are responsible for making the final determination of whether the borrower’s specific income source has a defined expiration date. The date of the completed form must comply with B1-1-03, Allowable Age of Credit Documents and Federal Income Tax Returns . the borrower’s recent paystub and IRS W-2 forms covering the most recent two-year period. Determine the net documented assets. This FAQ document provides responses to common questions related to Fannie Mae’s property eligibility and appraisal policies. If the part-time income is variable, refer to FAQ: How is variable income calculated? For information on part-time income that is seasonal, refer to FAQ: What are the requirements for seasonal income?Temporary leave income: $2,000 per month. Refer to the applicable topics in Chapter B3-3, Income Assessment for additional information about specific tax return requirements. Established during the Great Depression, Fannie Mae purchases mortgages from lenders, converts them into mortgage-backed securities, and sells them to. See B3-3. If the retirement assets are in the form of stocks, bonds, or mutual funds, the account must meet the requirements of B3-4. Definition of Annuity Due. Example. Credit documents include credit reports and employment, income, and asset documentation. 7 $3. 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. financial markets. Gift Funds. Fannie Mae’s underwriting guidelines emphasize the continuity of a borrower’s stable income. Factors such as age, gender, health status, investment amount,. 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. Launch Ask Poli for Sellers . When a component of the loan is validated by DU, the loan may. Investment-linked annuities are financial products that combine the features of insurance and investment. self-employment income. Sources "B3-3. 01. Annuity Income. 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 provisions should not be applied as a means to calculate a higher income amount for qualifying purposes, unless the income meets the definition of self-employment as stated in B3-3. Income property, 80 percent, The type of mortgage loan that best fits the asset-liability. current receipt of trust income with one month’s bank statement or other equivalent document. 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. “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 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. FANNIE & FREDDIE INCOME DOCUMENTATION FANNIE MAE DU/FREDDIE MAC LP These are common forms of income we see. 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. For additional information, see B3-3. 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). If the Net Monthly Rental Income is a “breakeven” amount, the user must enter either $0. HUD, the parent of FHA, allows fixed-income borrowers to gross up 115% of their social security income. Retirement, Government Annuity, and Pension Income . rental income. Minus 10% of $500,000 ($500,000 x . Funds needed to complete the. Annually or for any specified period, the total Effective Gross IncomeEffective Gross IncomeOn an annual basis or any specified period, the total of Net Rental Income plus other income per Part II, Chapter 2: Valuation and Income, Section 202: Income Analysis and the applicable products and features in Part III. Borrowers whose qualifying income is greater than 50% and is less than or. 501. Using Nontaxable Income to Adjust the Borrower’s Gross Income. 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. 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. 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. HomeReady permits lower credit scores. an IRS 1099 form. 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. 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 lender must obtain. How Underwriters Calculate Income on Freddie Mac Asset Depletion Mortgages. 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. The total qualifying income that results may not exceed the borrower's regular employment income. 1-02, Standards for Employment Documentation. an IRS 1099 form. 2-01, Underwriting Factors and Documentation for a Self-Employed Borrower. 1. Items required for a complete BRP : Form 710, or equivalent, that is completed in its entirety. (Hourly gross pay x average # of hours worked per week x 52 weeks) / 12 months. The following table provides the requirements for employment-related assets that may be used as qualifying income. 1-09, Other Sources of Income . 02 B Business Income (including Rental Value) Insurance. Chapter B3-2: Desktop Underwriter (DU) Chapter B3-3: Income Assessment. Example. If I have a question on how to document income, I Google “Fannie Mae requirement for…” or “Freddie Mac Doc Matrix”. 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. Fannie Mae customers! Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. What are Fannie Mae’s expectations of a seller or servicer if its mortgage operation is impacted due to a. If there is a noticeable decline in this bonus income, it could influence a borrower's eligibility for a mortgage loan. Subpart B2: Eligibility. 1Secondary employment must be documented by obtaining the following: a completed Request for Verification of Employment ( Form 1005 ); or. For more 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. 01. When you purchase an annuity, you can choose from several payout. Tip Income Fannie Mae allows tip income to be included in qualifying income if the lender can verify that the borrower has received the income for the last two years. Refer to Selling Guide. Employment-Related Assets as Qualifying Income. 0 0 Sales Price $265,0 0 0. 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. Which of the following is a guideline used by Freddie Mac when determining if a loan is conforming. 9 $2. Determine if there is any information outside of the data submitted to DU that could have affected DU's. For more questions on this specific. The statement must specify the income type, amount and frequency of the payment, and include confirmation of the initial start date. Income Assessment. Chapter 4, Section E HUD 4155. Fixed Annuity: In a fixed annuity, the insurance company guarantees a fixed rate of return on the premium, and the annuitant receives regular payments of a fixed amount. 9 Billion for 2022 and $1. Home, 60 percent. 3; and. To calculate asset depletion income for Fannie Mae, you will need to follow these steps: 1. Calculating the Borrower’s Housing Expense-to-Income Ratio. 12 CFR 30, Appendix A, and 12 CFR 160. They call this practice “grossing up” income because you. HomeReady and Home Possible are commendable initiatives by Fannie Mae and Freddie Mac, respectively, aiming to make homeownership more attainable for low to moderate-income borrowers. 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 additional information, see FAQs: Using Income from Retirement and Employment-related Assets and B3-3. Obtain a copy of the borrower’s disability policy or benefits statement from the benefits payer (insurance company, employer, or. 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"). Published May 3, 2023Disability Income — Long-Term. Retirees often have significant assets, but limited income, so Fannie and Freddie have found ways to help retirees qualify based on their assets. 50% Loan Term 180. an IRS 1099 form. a copy of signed federal income tax return, an IRS W-2 form, or ; an IRS 1099 form. b. 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. An 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. General Information. 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. an IRS 1099 form. Launch Ask Poli for Sellers . 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. 4155. (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. Non-taxable income refers to earnings that are exempt from income taxes. Top Lender Questions on Federal Income Tax Returns, Installment Agreements, and Transcripts . 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. 501. 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, October 2 2019. m. Fannie Mae is updating this guidance to require that for Fannie Mae HAMP modifications, the servicer develop an “adjusted gross income” for. 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. ) Home / Underwriting Borrowers / Income. Monthly Income (Sort ID 291) is to be delivered with the combined qualifying gross monthly income of all borrowers. Fannie Mae Corporation pays an average of $7,537 in annual employee bonuses. Learn more about calculating your DTI ratio. PART A Doing Business with Fannie Mae. The Guaranteed Minimum Withdrawal Benefit (GMWB) is a feature of certain annuity contracts. Her previous roles included litigation partner at Jenner & Block and general counsel at Fannie Mae. 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: Changes since the last update are marked either NEW or UPDATED. 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. Stable and Predictable Income. The lender must obtain. Freddie Mac Form 65 • Fannie Mae Form 1003 URLA Effective 9/2020 • Instructions Revised 3/2020 1b. Chapter B3-1: Manual Underwriting. 1, Employment and Other Sources of 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. Unless the lender has knowledge to the contrary, if the income does not have a defined expiration date and the applicable history of receipt of the income is documented (per. Temporary leave income: $2,000 per month. Chapter B3-4: Asset Assessment. Regular income amount: $6,000 per month. For additional information, see B3-3. an IRS 1099 form. Fannie Mae Gift of Equity . If the source of your income is not listed, ask your Lender for guidance. All guidance specific to COVID-19 will be communicated through Lender Letters . Refer to Selling Guide Announcement SEL-2012-13 for details. DU loan casefiles: DU will determine the reserve requirements based on the following: Two months’ reserves for a second home transaction. a copy of signed federal income tax return, an IRS W-2 form, or. Tax returns are required if the borrower. an IRS 1099 form. The date of the completed form must comply with B1-1-03, Allowable Age of Credit Documents and Federal Income Tax Returns . 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. Refinance. Contact your account team or call 1-800-2FANNIE (1-800-232-6643)and press option 1 for technology support. Funds needed to complete the. Verification of Income for Non-U. Maximum LTV, CLTV, and HCLTV Ratio. 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:. Acceptable Sources of Reserves. If I have a question on how to document income, I Google. 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%. Verify that the income can be expected to continue for a minimum of three years from the date of the mortgage application. Other income sources can include annuities, distributions from retirement savings plans, and other government retirement benefits. for very low-, low-, and moderate-income families in three specific underserved markets: manufac-tured housing, affordable housing preservation, and rural housing. 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). 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. an IRS 1099 form. The primary beneficiary of the trust must be the individual (s) establishing the trust. Total verified liquid assets: $30,000. Are a first-time homebuyer. the business provides more than $12 billion of protected income payments. When a component of the loan is validated by DU, the loan may. Determining the Need for Federal Income Tax Returns. The stable and reliable flow of income is a key consideration in mortgage loan underwriting. Annuities are just one of the many financial products designed to offer income for retirees. For manually underwritten loans, Fannie Mae’s maximum total DTI ratio is 36% of the borrower’s stable monthly income. / Retirement/ Gov't Annuity/ Pension Income; Browse. Fannie Mae Cash-Out Refinance . The stable and reliable flow of income is a key consideration in mortgage loan underwriting. Guide Resources. Lender must document 3–year continuance. General Information. Requirement. S. freddiemac. The borrower has the right to select the insurer of their choice to provide property insurance for the subject property, provided that the insurance meets Fannie Mae's requirements.