source:
  type: guide
  id: fnma-sel-b3-3.4-03
  authority: Fannie Mae Selling Guide B3-3.4-03 — Annuity, Pension, or Retirement
    Income
  description: Fannie Mae Selling Guide B3-3.4-03 — Annuity, Pension, or Retirement
    Income.
  coverage_tier: operative
obligations:
- id: fnma-sel-b3-3.4-03-full
  canonical_id: fnma-sel-b3-3.4-03-full
  section: Fannie Mae Selling Guide B3-3.4-03 — Annuity, Pension, or Retirement Income
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide B3-3.4-03 — Annuity, Pension, or Retirement
      Income
    source_class: fnma-guide
    source_url: https://singlefamily.fanniemae.com/media/document/pdf/selling-guide
    snapshot_id: 5f7b8b79da595d76
    fetched_at: '2026-05-25T14:09:57Z'
    content_hash: sha256:98cf85a02861bbe84914a0e339b327c8fc131869a8a573882007bbeea60c5701
    paragraph_quote: 'B3-3.4-03, Annuity, Pension, or Retirement Income (03/04/2026)
      The following table provides requirements for annuity (government, personal,
      or insurance), pension, and retirement income. Criteria Requirements Documentation
      The lender must obtain veriﬁcation of the income amount using at least one of
      the following: • a statement from the organization providing the income, • a
      copy of retirement award letter or beneﬁt statement, • a copy of ﬁnancial or
      bank account statement, • a copy of signed federal income tax return, • an IRS
      W-2 form, or • an IRS 1099 form. However, if the borrower will begin receiving
      payments from an annuity or pension account on or before the ﬁrst payment date
      of the subject mortgage, document the income with a beneﬁt statement from the
      organization providing the income. The statement must specify the income type,
      amount and frequency of the payment, and include conﬁrmation of the initial
      start date. Income History Fixed Distribution or ﬁxed payment: No minimum history
      is required. Variable Distribution: A minimum 12-month history of receipt is
      required. Published May 6, 2026 337 Criteria Requirements Income Continuance
      Insurance/personal annuity or retirement account distribution: The lender must
      document that income is expected to continue for at least three years from the
      note date. Distributions or ﬁxed payment from a pension: Document(s) used to
      support the monthly income amount may not reference the required minimum three-year
      continuance from the note date. In these situations, the lender must make the
      determination using alternative documentation such as, but not limited to, an
      applicable written agreement, the respective government program associated with
      the distribution, or information required by law or regulation related to the
      distribution. Note: Eligible retirement account balances (from 401(k), IRA,
      or Keogh) may be combined for the purpose of determining whether the three-year
      continuance requirement is met. The borrower must have unrestricted access to
      the accounts without penalty. Determination of Qualifying Income Fixed Distribution
      or ﬁxed payment: The monthly payment amount as documented above may be used
      as qualifying income. Variable Distribution: Develop an average of the income
      received for the most recent 12 months. DU Validation Service If a borrower''s
      annuity, pension, or retirement income is validated by the DU validation service,
      DU will issue a message indicating the required documentation. This documentation
      may diﬀer from the requirements described above. See B3-2-02, DU Validation
      Service . Recent Related Announcements The table below provides references to
      recently issued Announcements related to this topic. Announcement Date Announcement
      SEL-2026-02 March 04, 2026 Published May 6, 2026 338'
  judgment: false
