Parsonage Income - Unlocking Loan Solutions with Radian

This episode is a part of Unlocking Loan Solutions with Radian, a micro-learning series for mortgage & real estate professionals, with video, audio, and job aid for each topic. Choose your preferred learning style and take your learning experience to a new level.

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In this episode, we explore the concept of parsonage income, also known as a housing allowance, and its impact on a mortgage loan application. We will discuss:

• What is parsonage income and where it might come from
• Potential benefits of parsonage income
• How the GSEs treat this type of income
• Documentation requirements for parsonage income
• Example scenarios to help better understand the use of parsonage income in a loan file

Resources

• Fannie Mae Selling Guide B3-3.1-01, General Income Information - Using Nontaxable Income to Adjust the Borrower’s Gross Income 
• Fannie Mae Selling Guide, What is required for housing or parsonage allowance?
• Fannie Mae Selling Guide B3-3.1-09, Other Sources of Income- Housing or Parsonage Allowance
• Freddie Mac Selling Guide 5305.2, Specific requirements for other income types 
• Freddie Mac Selling Guide 9202.3, Borrower income documentation for workout or relief options

Explore more complex income types, including non-taxable sources, social security income, child support and alimony.

• Foundations On Demand Course: Not Your Ordinary Income 
• Not Your Ordinary Income: Social Security Benefits
• Not Your Ordinary Income: Military Pay

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