Replies to post #325660 on Fannie Mae-No Politics (FNMA)

[BaGr]

I may be wrong but from what I read it does not help on qualifying. It helps with DTI. You have to have a 680 score.



Flexibilities
? Non-occupant borrowers allowed (max 95% LTV in DU®) – income is considered part of
qualifying income and subject to applicable income limits
? Innovative new feature that supports extended family households: will consider income
from a non-borrower household member
• Compensating factor in DU to allow for a debt-to-income (DTI) ratio higher than 45%, up to 50%.
• Not counted as qualifying income.
• Non-borrower income must be at least 30% of the total monthly qualifying income being used by the
borrower(s). (Note: Income from more than one non-borrower household member may be considered.)
• Non-borrower household members may be relatives or non-relatives.
• Non-borrowers must document their income and sign a statement of intent to reside with the borrower(s)
for a minimum of 12 months. Documentation required only if DU determines the non-borrower income will
provide a benefit. (See optional Fannie Mae Form 1019.)
? Rental income from accessory dwelling units may be considered in qualifying the borrower (per
rental income guidelines)
? Lower than standard mortgage insurance coverage – 25% for LTVs above 90% to 97%

Sample Scenario: Extended-Income Household
A single woman with children is looking to buy a larger home, so her father can move in with
her. Her father has monthly income and, although he will not pay rent to his daughter, he may
contribute to household expenses periodically.
The father’s income is not considered as qualifying income; therefore, there is no change to
the borrower’s DTI ratio of 47%. The existence of the father’s income, however, is considered
the compensating factor that allows the borrower to have a DTI ratio greater than 45%