SUBJECT: FNMA Announcement 2023-09

DATE: December 21, 2023

FNMA published SEL-2023-09 on October 4, 2023, which included some policy changes that are effective January 1, 2024.


  • Effective date: Applications date on and after January 1, 2024
  • Alignments have been made to determine qualifying income for non-subject rental properties that have become rental properties within the last 12 months (investment properties or two- to four-unit primary residences), with that of rental income earned from the subject property. This update will require the borrower to have a primary housing expense and at least a one-year history of property management experience to use the full amount of rental income towards qualifying, otherwise the amount may be limited
  • Requirements for both the subject property and other real estate owned, when the property is owned less than 1 year -vs- 1 year or greater
  • If a lease is being used it MUST be supported by either the 1007/1025 OR copies of the security deposit, first-month rent, etc.
  • The rental income/loss for other real estate is calculated individually and then aggregated for a total income or loss figure. If the aggregate is positive it is added to income and if it is negative it is added as debt


  • Effective date: Initial DU case file (creation) on and after January 1, 2024
  • For a borrower who has been self-employed for less than 24 months but more than 12 months, income can now be considered provided the most recent signed personal and business tax returns reflect a full year (12 months) of income from the current business. There must also be evidence of prior income at the same or greater level from a field that provides similar products, services, and responsibilities
  • One year of personal and business tax returns will be accepted provided:
    • Business in existence for 5 years and the borrower has had an ownership share of 25% or more for the past 5 years consecutively AND
    • All businesses are assessed separately for the 5 years in existence benchmark AND
    • An acceptable cash flow analysis (form 1084) is completed

These changes will be incorporated to REMN’s January 2024 guidelines.

Please contact your Account Executive with any questions.