Freddie Mac Seller/Servicer Guide 5304.1: Stable monthly income and documentation requirements for self-employed Borrowers
This chapter provides the requirements to determine the appropriate qualifying income for a self- employed Borrower.
Freddie Mac publishes the full text of this section: Freddie Mac Seller/Servicer Guide 5304.1 on the Freddie Mac website. Zeitro Strata answers questions about it with the passage and page cited.
What this section covers
- (a) Self-employed Borrower definition, business structure and verification of ownership interest percentage
- (b) Loan Product Advisor
- (c) Self-employment history requirements
- (d) Business review and analysis
- (e) Business income: access and use
- (f) Income calculation and fluctuation analysis
- (g) Additional supporting documentation for business and income analysis
- (h) Borrower debt paid by business
- (i) Business structure change
- (j) IRS Form 8825, Rental Real Estate Income and Expenses of a Partnership or an S Corporation
- (k) Self-employment income not used for qualification
- (l) Business assets used for closing
- (m) Verification of current existence of the business
- (n) Documentation requirements
Guideline text quoted as published by the agency. The latest published version governs. This is not an underwriting decision.