Fannie Mae Lender Letter 2021-03 and Freddie Mac Bulletin 2022-03, both dated February 2, 2022, announced the removal of the temporary requirements for borrowers using self-employment income to qualify put in place due to COVID-19 as detailed below
Self-Employed Borrower Qualified Using 2020 or 2021 Tax Return
Standard Fannie Mae/Freddie Mac policy for borrowers using self-employment income to qualify will apply when the most recent federal income tax return used to qualify the borrower is no older than 2020 (i.e. the tax return used for qualifying is from 2020 or 2021)
NOTE: If the tax return used for qualifying is prior to 2020 the temporary COVID policy will continue to apply and an unaudited P&L and bank statements or an audited P&L will be required
This improvement is effective immediately and may be applied to new submissions and loans currently in the pipeline.
The Fannie Mae and Freddie Mac guidelines have been updated and posted to the Homebridge website at www.HomebridgeWholesale.com
If you have any questions, please contact your Account Executive.