Fannie Mae has clarified that when a borrower is obligated on a mortgage, but another party is making that payment: The lender may exclude the full payment. Yep – the whole thing, not just the P&I but all of it, including the taxes, insurance or HOA fees, as long as the borrower is not using rental income from that applicable property to qualify.

Rule Synopsis: [tweet-start]Fannie Mae clarified-when a borrower is obligated on a mortgage & another party is making that payment, the lender may exclude the payment.[tweet-end] Fannie Mae is updating their selling guide for five specific topics, plus three miscellaneous selling guide updates. This article will focus on the topics that benefit originators. For lenders that […]

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