AC-029 Freddie Mac Income Guideline Updates
NOTICE TO ALL CUSTOMERS
Important Freddie Mac Income Guideline Updates
Florida Capital Bank would like to notify customers of a number of Income Requirements updates announced by Freddie Mac via Bulletin 2024-10 these updates are available immediately but are required with loan applications finaled to FLCBank on or after October 15, 2024. Loans currently in the pipeline are not affected by the new income requirements so long they close on or before October 31, 2024.
Self-Employment Income
When self-employment history is less than two (2) years, the lender must consider, evaluate and provide a written analysis justifying the determination of stability of the income:
- The borrower’s experience in the business and confirm the borrower has a combined two (2) year history of receipt of income from the current self-employment and the prior job in the same or similar occupation or industry.
- Qualifying income must be determined by using the lesser of the stable monthly income from the new business or the stable monthly income earned in the previous occupation.
- Take into consideration the overall layering of risk, including the borrower’s demonstrated ability to repay obligations.