Many borrowers assume part-time income is treated the same way across all conventional mortgage loans. But there can be important differences in how Freddie Mac and Fannie Mae evaluate that income. Fannie Mae guidelines often place heavier emphasis on the…
Most borrowers assume mortgage qualification only comes down to their own income. But under Freddie Mac guidelines, there are situations where existing income from someone living in the home may help support qualification. This is known as boarder income. And…
A lot of borrowers assume a gap in employment automatically disqualifies them from getting a mortgage. Maybe you took maternity leave. Maybe you stepped away from work because of an illness, returned to school, cared for a family member, or…
If your student loan payment is currently $0, it is natural to assume it will not affect your ability to qualify for a mortgage. In practice, it is not that simple. A $0 payment may be accepted in some cases,…
Introduction One of the biggest challenges for many borrowers is coming up with the funds needed to buy a home. Down payments, closing costs, and reserves can add up quickly. But what many borrowers don’t realize is that Freddie…
Introduction Most people think qualifying for a mortgage comes down to one thing. Income. If your income is high enough, you qualify. If it’s not, you don’t. But that’s not how mortgage approvals actually work. Freddie Mac guidelines are…
Introduction Student loans are one of the most common concerns when applying for a mortgage. Many borrowers assume their student loan payment will automatically disqualify them or significantly reduce what they can afford. But that’s not always how it…
Introduction If you’re self-employed, you’ve probably heard this before: You need two years of tax returns to qualify for a mortgage. That’s one of the most common assumptions in lending. And in many cases, it’s true. But it’s not…
Introduction Rental income can play a major role in mortgage qualification, especially for borrowers purchasing multi-unit properties or converting homes into investment properties. But one of the biggest misconceptions borrowers have is assuming lenders only consider rental income that…
10 Lesser-Known Freddie Mac Guidelines That Can Influence Mortgage Qualification Introduction Most borrowers have heard of Freddie Mac, but very few understand how much its guidelines can influence whether a mortgage gets approved. Freddie Mac is one of the two…
