Freddie Mac Fixed Income Mortgage Guidelines On Conventional Loans

This Article Is About Freddie Mac Fixed Income Mortgage Guidelines On Conventional Loans

There are specific rules and regulations for fixed income borrowers per Freddie Mac Fixed Income Mortgage Guidelines:

Freddie Mac is always updating its guidelines, just like Fannie Mae and HUD.

  • Recently Freddie Mac has updated documentation requirements for social security income
  • The recent Freddie Mac updates on fixed income will make it easier on the borrower
  • We are now able to accept the Social Security Awards letter OR most recent 60 days bank statements showing the Social Security direct deposits
  • In the past, we would need BOTH the Social Security Awards letter and 60 days of bank statements reflecting the social security deposit deposits
  • Freddie Mac is changing with the times to make the loan process easier on individuals who receive Social Security income
  • Now this change may not seem dramatic, but it is a step in the right direction

In this article, we will cover and discuss Freddie Mac Fixed Income Mortgage Guidelines On Conventional Loans.

Benefits Of Freddie Mac Fixed Income Mortgage Guidelines On Conventional Loans

Benefits Of Freddie Mac Fixed Income Mortgage Guidelines On Conventional Loans

Freddie Mac, Fannie Mae, and HUD are always looking for ways to improve the mortgage process.

  • As mortgage professionals, documentation is part of our day to day lives
  • We do not ask for documentation just for fun
  • There are very specific guidelines on what we must document from a borrower
  • The mortgage process has a very strict documentation policy

So anytime we see a major player such as Freddie Mac remove documentation, we smile!

Freddie Mac Fixed Income Mortgage Guidelines On Grossing Social Security Income

If you receive Social Security income, please remember the fact that you can gross up your monthly benefit amount by up to 125% for mortgage qualification purposes.

If you are not required to pay income tax on your social security income, you are allowed to gross up the amount you receive.

See below for maximum gross-up amounts:

  • Fannie Mae and Freddie Mac allow grossing up 125% for conventional financing for fixed income borrowers on social security
  • HUD, the parent of FHA, allows fixed-income borrowers to gross up 115% of their social security income
  • VA Loans allows borrowers to gross up 115% of their social security fixed income 

Clearly, conventional loans permitting 125% grossing up on social security and other non-taxable fixed income is a great advantage for mortgage borrowers.

Documents Required To Start Mortgage Process

What Documents Required To Start Mortgage Process

What other documentation will you need to start the mortgage process?

  • Last 60 Days Bank Statements – needs to show direct deposits for fixed income
  • OR – Social Security Awards Letter
  • Driver’s License
  • Current mortgage statement (if a refinance)
  • Homeowner’s Insurance Agent Information

Fixed income has always been the easiest income to verify, and it just became even easier with Freddie Mac. To talk with a mortgage professional from Gustan Cho Associates Mortgage Group, call Mike Gracz on 630-659-7644. Or text us for a faster response. Or send an email to mgracz@gustancho.com.

One-Stop Mortgage Solutions For Owner-Occupant Homes, Second Homes, And Investment Property Financing

We can go over your specific mortgage qualifications based on your Social Security benefits. The team at Gustan Cho Associates is available 7 days a week, evenings, weekends, and holidays. The team at Gustan Cho Associates is always looking forward to answering any questions you may have. Whether you are looking to downsize from your current home, moving to a larger home, or refinance your current property, we are here to make the process easy and streamlined! GCA Mortgage Group has a national reputation of being a one-stop mortgage shop. Besides having no lender overlays on government and conventional loans, we offer dozens of different non-QM mortgage loan programs. If there is a non-QM and/or alternative financing loan program in the market, you can be rest assured Gustan Cho Associates has it.

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