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.

QuestionAnswer
Form NameFannie Mae 1037
Form Length1 pages
Fillable?No
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

 

 

 

 

Enter

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:

Result

 

 

 

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

 

 

 

 

 

 

 

 

A1

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

Enter

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A2

Subtract total expenses.

Subtract

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A3

Add back insurance expense.

Add

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A4

Add back mortgage interest paid.

Add

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A5

Add back tax expense.

Add

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A6

Add back homeowners’ association dues.

Add

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A7

Add back depreciation expense or depletion.

Add

 

 

 

 

 

 

 

A8

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

Add

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equals adjusted rental income.

Total

 

 

 

 

 

 

 

A9

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

Divide

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Step 2A. Result: Monthly qualifying rental income:

Result

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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.

 

 

 

 

B1

Enter gross monthly rent (from the lease agreement) or

Enter

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

B2

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

Multiply

x .75

 

x .75

 

 

 

 

accounts for vacancy loss, maintenance, and management expenses.

 

x .75

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equals monthly rental income per unit.

Total

 

 

 

 

 

 

B3

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

Add

 

 

 

 

 

 

 

(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:

Result

 

 

 

 

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

 

 

 

 

Rental.”

 

expense.

 

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

Fannie Mae Form 1037

09.30.2014

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