09/9/2026 - Fannie Mae Selling Guide Updates

These updates are effective immediately.

Key Highlights

• In order to use rental “income”, the applicant must have 12 months of property management experience, and the experience must be documented
• If there is less than 12 months or no experience, only the payment can be offset.
• Unable to use a lease agreement under the following scenarios:

o   Departing residence is being converted to an investment property.

o   Investment property was purchased within 45 days of the subject property.

• Provides clear guidance on when a lease is permitted and the requirements surrounding utilizing a lease.
• Calculators are available and the Income Calculator will support calculating rental income
• ADU income is only allowed from One ADU.
• ADU income is not permitted on cash-out transactions.
• ADU income can’t be more than 30% of the qualifying income.
• Short-term rentals must be legally permitted and in compliance with all local registration and licensing requirements.
• Short-term rental has a 50% reduction for vacancy losses and maintenance expenses.
• Six months’ reserves are required when converting the departing residence to an investment when the applicant doesn’t have the 12-month property management experience.

For complete details, refer to Section B3-3.8 – Rental Income in the Fannie Mae Selling Guide.

Note: Expansion of Native American Conventional Lending Initiative (NACLI) – Newrez will not be adopting this policy expansion at this time.

Resource: Fannie Mae Selling Guide