Did you know that unreimbursed business expenses do not have to be analyzed or deducted for borrowers who are qualified using base pay, bonus, overtime, or commission income less than 25% of the borrower's annual employment income?
Fannie Mae and Freddie Mac do not require that unreimbursed employee business expenses be analyzed or deducted from the borrower’s qualifying income, or added to monthly liabilities, for a borrower who is qualified using base pay, bonus, overtime, or commission income less than 25% of the borrower’s annual employment income.
This applies regardless of whether unreimbursed employee business expenses are identified on tax returns (IRS Form 2106) or tax transcripts received from the IRS.
See Fairway Guides for more information.
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