If a borrower has a primary source of income and also owns a small company as a second source of income, we are not required to count business losses from the borrower’s self-employed job against them. This is important to know if you’re still working and trying to build a company on the side.
Related Article Title: Fannie Mae – Business Losses – Secondary Employment: My borrower is qualifying on his IRA income but has a secondary business with large losses. Do I need to count those losses against him? Answer: No, please see the highlighted text from the guidelines below. Reference: B3-3.2-01, Underwriting Factors and Documentation for a [...]