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Radian On Air
Parsonage Income - Unlocking Loan Solutions with Radian
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Radian National Training
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.
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.