Fannie Mae Form 1038 Details

If you're a homeowner who's been looking to refinance your home, you may have come across the Fannie Mae 1037 program. This refinance option is available to homeowners with high loan-to-value (LTV) ratios, and can help you save money on your monthly mortgage payments. Here's what you need to know about the Fannie Mae 1037 program, including how to qualify and how to get started. What is it that you would like borrowers qualification requirements? Also as this product has just been announced give some general guidance of what folks could see in savings - ballpark estimate please for those rates? I recall other ops like these gave 600bps at least savior over 30 yr FRM product.

Here is the details relating to the PDF you were seeking to fill in. It can show you the time you will require to complete fannie mae 1037, exactly what fields you need to fill in, and so forth.

Form NameFannie Mae 1037
Form Length1 pages
Fillable fields0
Avg. time to fill out15 sec
Other namesform 1037, rental income worksheet, fannie mae rental income calculator, fannie mae form 1038

Form Preview Example

Rental Income Worksheet

Principal Residence, 2- to 4-unit Property: Monthly Qualifying Rental Income

Documentation Required:


Address of Principal Residence:





Schedule E (IRS Form 1040) OR






Rental Unit

Rental Unit

Rental Unit

Lease Agreement or Fannie Mae Form 1025








Step 1 When using Schedule E, determine the number of months the property was in service by dividing the Fair Rental Days by 30. If Fair Rental Days are not reported, the property is considered to be in service for 12 months unless there is evidence of a shorter term of service.

Step 1. Result: The number of months the property was in service:





Step 2 Calculate the monthly qualifying rental income using Step 2A: Schedule E OR Step 2B: Lease Agreement or Form 1025.




Step 2 A. Schedule E - Part I










Enter total rents received (from the non-owner-occupied units).










May enter rent from individual unit(s) or combine.


















Subtract total expenses.




















Add back insurance expense.




















Add back mortgage interest paid.




















Add back tax expense.




















Add back homeowners’ association dues.










This expense must be specifically identified on Schedule E in order to add it back.


















Add back depreciation expense or depletion.










Add back any one-time extraordinary expense (e.g., casualty loss). There










must be evidence of the nature of the one-time extraordinary expense.


















Equals adjusted rental income.










Divide by the number of months the property was in service (Step 1 Result).





























Step 2A. Result: Monthly qualifying rental income:




















Step 2 B. Lease Agreement or Fannie Mae Form 1025








This method is used when the transaction is a purchase or the property was acquired subsequent to the most recent tax filing.






Enter gross monthly rent (from the lease agreement) or









market rent (from Form 1025) for the applicable rental unit.










Multiply gross monthly rent or market rent by 75% (.75). The remaining 25%


x .75


x .75





accounts for vacancy loss, maintenance, and management expenses.


x .75
























Equals monthly rental income per unit.









Combine the monthly rental income of all non-owner-occupied rental units









(up to a maximum of 3 rental units since rental income is not eligible on the










unit occupied by the borrower).



















Step 2B. Result: Monthly qualifying rental income:






Step 3. Determine the qualifying impact using the combined result of Step 2A or Step 2B.

3A Add the monthly qualifying rental income to the borrower’s monthly qualifying income.

3B Identify the full amount of the PITIA as the borrower’s primary housing expense and include it in the debt-to-income ratio.

Use proposed PITIA when the subject property; existing PITIA when not the subject property.



DU Data Entry

Monthly Income and Combined Housing Expenses


Mortgage Liabilities








Subject Property

Enter the amount of the monthly qualifying income in


Include as the borrower’s primary housing





“Subject Net Cash.”


expense. For refinance transactions, identify







the mortgage as a subject property lien.











Non-Subject Property

Enter the amount of the monthly qualifying income in “Net


Include as the borrower’s primary housing









Refer to the Rental Income topic in the Selling Guide for additional guidance.

Fannie Mae Form 1037


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