Tag: future income

Expected/Future Income During the COVID19 Pandemic

Question: Has Fannie Mae or Freddie Mac released any guidance on the use of expected or future income during the COVID-19 Pandemic? Answer: What a great question!  There has been no correspondence from Fannie or Freddie announcing that they would be discontinuing their guideline allowing for future income/job. This is still allowed per selling guide […]

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If a borrower has a new job, but does not have a non-contingent contract, will Fannie or Freddie allow that income?

Answer: Both Fannie and Freddie allow for this, but your company has to hold the loan before selling to Fannie or Freddie until AFTER the borrower starts employment and you get first paystub. A lot of lenders don’t like to take that risk.  So the agencies offer two options, one that I explained above, and […]

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VA – Future Income: How does VA handle future income when the borrower has an employment contract but no paystub? Chart – Expected Income – New Job Starting After Closing – All Agencies

Answer: VA does not prescribe a certain time frame regarding commencement of a new job. A paystub is not required in order to close when there is a valid offer of employment. (See highlighted portion of the guideline below.) Because VA doesn’t provide any other details regarding offers of employment, you can expect a standard […]

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