ALERT – Updates to Fannie Mae Guidelines

Effective immediately for all Fannie Mae loans, Arc Home will align with the changes communicated by Fannie Mae in Announcement SEL-2023-11 for the topics below.

·         Verification of Employment Alternatives: Updated guidelines to offer alternative methods to satisfy the verbal verification of employment requirements. Refer to Fannie Mae Selling Guide B3-3.1-07 for complete details.

·         Restricted Stock Units and Restricted Stock: Enhanced guidelines to allow both restricted stock units and restricted stock (collectively referred to as “restricted stock”) as an eligible income source. Refer to Fannie Mae Selling Guide B3-3.1-01 and Selling Guide B3-3.1-09 for requirements.

·         Using Non-Taxable Income to Adjust Borrower’s Gross Income: Clarified guidelines to allow gross-up of certain non-taxable income without additional documentation validating non-taxable status. Refer to Fannie Mae Selling Guide B3-3.1-01 for details.