Did You know that Conventional and FHA differ on the use of expected future income??? It’s true!!!
Fannie Mae and Freddie are now the same as far as allowing the use of future projected income up to 90 days after closing.
- The Employer MUST state in writing how much and when the new income will begin. It can be either from the current Employer if it’s a raise or a new Employer.
- The Employer CANNOT be a family-owned business and the income MUST be a salary ONLY. NO hourly wage increased will be acceptable.
- Purchase or Rate/Term on a primary residence single-family transactions ONLY.
- FHA will also allow the use of future expected including an hourly wage increase up to 60 days after closing.
- Increases from family owned business will NOT be considered.