Tag: Self-employed

Adding Back Car Expenses for Car Service Drivers

Question: Will Fannie Mae allow car expenses [located on Line 9 of the Schedule C] to be added back to income for a sole proprietor? Answer: Unfortunately, you cannot.  You can also use form 1084 which specifically identifies how to calculate income for a Schedule C business. We have posted this link in the supporting […]

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Determining the Financial Strength of a Self-Employed Borrower

Question: My client owns a business and I am trying to decide the best way to demonstrate the criteria of “the ability of the business to continue generating and distributing sufficient income to enable the borrower to make the payments on the requested mortgage” as required by Fannie Mae.  What are your suggestions? Answer: Fannie […]

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Fannie Mae’s Top FAQs – NEW MTP™ – What is The Difference Between a Second Home and Investment Property?

Written by: Lloyd Rutherford, Staff Writer FAQs published by Fannie Mae are a great way to learn a lot in a quick period of time. Read through this latest FAQ release and pick up some great tips! Rule Synopsis: Fannie Mae updated their top trending questions. Fannie Mae also updated their FAQ for Homeownership Education […]

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Fannie Mae & Freddie Mac – Self-Employed: Will Fannie or Freddie allow a borrower who has been self-employed for less than 2 years?

Answer: Yes, both agencies (Fannie/Freddie) offer a path for someone with less than two years in self-employment, but never less than one year. The less-than-two-year path requires that the borrowers worked in a similar field, among other things. Reference: Fannie Mae B3-3.2-01, Underwriting Factors and Documentation for a Self-Employed Borrower (12/04/2018) Introduction This topic contains […]

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Fannie Mae & Freddie Mac – Liquidity Calculation: Do Fannie Mae and Freddie Mac have the same liquidity calculation for self-employed income? NEW – Liquidity Calculator

Answer: You should be able to use the same calculator for either agency; since the methodology is the same, the calculation itself mathematically does not change between the agencies.  Mortgage Currentcy has a liquidity calculator hosted on their site under charts & checklists, category Universal. Supporting Resources Liquidity Calculator [Article Published in Rule & Regulation […]

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