Fannie Mae and Freddie Mac – Oil Leases & Royalty Income: Is the 3-year continuity of income required for oil leases where income is reported on the tax return, but no one knows how long a well will produce oil?
Answer: This falls under Royalty Income. Fannie Mae is more restrictive and shows a requirement for evidence of 3 years’ continuance. Freddie Mac on the other hand has two different approaches. One approach is if you have received royalty income for one year, and the other approach is if you have received royalty income for […]