Fannie Mae will not require business tax returns if the borrower: 1) Uses their personal funds for down payment and reserves. 2) Has been self-employed in the same business for 5 or more years. 3) Their personal returns show an increase in income over the past 2 years.
Related Article Title: Fannie Mae & Freddie Mac – Business Debt in Borrower Name: Do I need to count a business debt that the borrower guaranteed? CHART- Business Debt in Borrower’s Name – All Agencies Answer: Freddie Mac is a bit more lenient in this scenario than Fannie Mae. Freddie Mac states: Do not consider […]