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When it comes to securing a mortgage in the state of Georgia, it’s essential to stay updated on the latest guidelines and requirements. Fannie Mae, a leading mortgage investor, has recently announced some changes regarding rental income and self-employment.
Rental Income Requirements
To utilize rental income from investment properties, borrowers must have a primary housing history and at least 12 months of property management history. Failure to meet these criteria will result in limitations on the amount of rental income that can be considered. Additionally, Fannie Mae requires the submission of either appraisal form 1007 or 1025 to support the rental lease amount. It is crucial to provide two months’ worth of receipts to validate the rental income.
Self-Employment Requirements
For self-employed borrowers, a minimum of 12 months of self-employment is necessary, which entails providing a full 12 months of personal and business tax returns. However, if Fannie Mae’s portal only displays one year of returns, additional requirements must be met. Firstly, all self-employed businesses owned by the borrower(s) must have been in existence for at least five years. Secondly, the borrower must have 25% or more ownership in each business for a consecutive period of at least five years.
Staying informed about Fannie Mae’s rental income and self-employment requirements is crucial for individuals seeking a mortgage in Georgia. By understanding these guidelines, borrowers can better prepare themselves and ensure a smoother mortgage application process. If you have any further questions or need assistance, feel free to contact us, where our team of experts is ready to help you navigate the mortgage landscape in Georgia.
