source:
  type: guide
  id: fnma-sel-b3-3.3-01
  authority: Fannie Mae Selling Guide B3-3.3-01 — Base Income
  description: Fannie Mae Selling Guide B3-3.3-01 — Base Income.
  coverage_tier: operative
obligations:
- id: fnma-sel-b3-3.3-01-full
  canonical_id: fnma-sel-b3-3.3-01-full
  section: Fannie Mae Selling Guide B3-3.3-01 — Base Income
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide B3-3.3-01 — Base 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: 'B3-3.3-01, Base Income (03/04/2026) Introduction This topic
      contains information on determining qualifying income for base pay, including:
      Overview Fixed Base Income Variable Base Income Overview Base income is received
      on a regular basis, independent of additional earnings such as overtime or bonuses.
      It is categorized as either ﬁxed or variable: Fixed base income refers to a
      set salary or ﬁxed hourly rate with guaranteed minimum hours. These hours may
      have minor variances from pay period to pay period which does not alone preclude
      the borrower’s income from being considered ﬁxed base income. Variable base
      income refers to a ﬁxed hourly rate with ﬂuctuating hours, or an hourly rate
      that varies. Fixed Base Income The following table provides requirements for
      ﬁxed base income. Criteria Requirements Documentation The lender must obtain
      • a completed Request for Veriﬁcation of Employment ( Form 1005), or • the most
      recent paystub and most recent W-2. Additionally, a verbal VOE is required.
      See B3-3.1-04, Verbal Veriﬁcation of Employment, for speciﬁc requirements. Income
      History A minimum history is not required for inclusion as qualifying income.
      Published May 6, 2026 316 Criteria Requirements Income Continuance The lender
      is not required to verify continuance unless they have reason to believe the
      income may not continue. Determination of Qualifying Income The lender must
      calculate ﬁxed base income as shown in the following table. How Often Paid How
      to Determine Monthly Income Annually Annual gross pay / 12 months Monthly Use
      monthly gross payment amount Twice Monthly Twice monthly gross pay x 2 pay periods
      Biweekly (Biweekly gross pay x 26 pay periods) / 12 months Weekly (Weekly gross
      pay x 52 pay periods) / 12 months Hourly (Hourly gross pay x average # of hours
      worked per week x 52 weeks) / 12 months The borrower''s qualifying income must
      be consistent with year-to-date base earnings. If year-to-date income does not
      reﬂect at least 30 days'' of earnings, the lender must conﬁrm qualifying income
      is consistent with the prior year''s earnings. Variable Base Income The following
      table provides requirements for variable base income. Criteria Requirements
      Documentation The lender must obtain • a completed Request for Veriﬁcation of
      Employment (Form 1005), or • the most recent paystub and most recent W-2. Additionally,
      a verbal VOE is required. See B3-3.1-04, Verbal Veriﬁcation of Employment, for
      speciﬁc requirements. Published May 6, 2026 317 Criteria Requirements Income
      History A minimum 12-month history of receiving variable income is required.
      Income Continuance The lender is not required to verify continuance unless they
      have reason to believe the income may not continue. Determination of Qualifying
      Income The lender must calculate income using one of the two methods below.
      1. Average Income: Depending on the historical trend of the income, the lender
      must calculate qualifying income as follows: • Stable or Increasing: Calculate
      an average income amount using year-to-date and previous year''s earning. The
      calculation must include a minimum of 12 months'' income. • Decreasing: The
      lender must conﬁrm the current income level has stabilized after the decline;
      otherwise, the income is not eligible for qualifying. To calculate income, use
      the year-to-date income divided by months elapsed in the current year. 2. Average
      Hours: The lender must multiply the average monthly hours (based on at least
      the most recent 12 months) by the current ﬁxed hourly rate. Note: When a documented,
      non-recurring event outside the borrower''s control temporarily prevented them
      from earning income, the lender may exclude that period from the income calculation.
      The pay raise policy in B3-3.2-02, Standards for Employment-Related Income does
      not apply to variable income. Any pay raises for variable base income must be
      in place prior to closing. Recent Related Announcements The table below provides
      references to recently issued Announcements related to this topic. Announcements
      Issue Date Announcement SEL-2026-02 March 04, 2026'
  judgment: false
