source:
  type: guide
  id: fnma-sel-b3-3.4-16
  authority: Fannie Mae Selling Guide B3-3.4-16 — Trust Income
  description: Fannie Mae Selling Guide B3-3.4-16 — Trust Income.
  coverage_tier: operative
obligations:
- id: fnma-sel-b3-3.4-16-full
  canonical_id: fnma-sel-b3-3.4-16-full
  section: Fannie Mae Selling Guide B3-3.4-16 — Trust Income
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide B3-3.4-16 — Trust 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: 'B3-3.4-16, Trust Income (03/04/2026) The following table provides
      requirements for trust income. Criteria Requirements Documentation The lender
      must obtain one or more of the following trust veriﬁcation documents to conﬁrm
      the amount, frequency, type of income being received, and the date the trust
      was created: • a copy of the trust agreement, • the trustee''s statement (provided
      the borrower is not the trustee), • the trust''s federal income tax returns,
      or • a letter from an accountant or attorney who reviewed the trust documents,
      when the above documents are not available or when the borrower is the trustee.
      Trust income with variable payments also requires a minimum 24-month history
      of trust income by obtaining copies of the following: • the borrower''s signed
      federal tax income tax returns for the most recent two years, or • the trust''s
      federal income tax returns for the most recent two years. Additionally, the
      lender must document receipt of the income for at least one month using sources
      including, but not limited to: • bank statements, • cancelled checks, or • evidence
      of other electronic receipt of payments. Published May 6, 2026 357 Criteria
      Requirements Income History Fixed payments: The lender must conﬁrm the trust
      was established for 12 months or longer, unless all of the following requirements
      are met: • the trust veriﬁcation documentation reﬂects ﬁxed payments, • the
      borrower is not the grantor, and • at least one payment is received prior to
      closing. Variable payments: A minimum 24-month history is required. Note: Trusts
      created in the previous 12 months using a borrower''s eligible employment-related
      assets, as deﬁned in B3-3.4-06, Employment Related Assets as Qualifying Income,
      may still be used as stable income but must meet the income calculation and
      all other requirements in that topic. Income Continuance The lender must conﬁrm
      continuance of income based on the type of income received through the trust.
      For example, if the income from the trust is derived from rental income, then
      three-year continuance in not required. However, if the income is a ﬁxed payment
      derived from a depleting asset, the lender must document that income is expected
      to continue for at least three years from the note date. Note: If any assets
      from the trust are being used for down payment, closing costs, or reserves,
      those assets must be subtracted from the total amount before determining if
      the trust income meets these Income Continuance requirements. Determination
      of Qualifying Income Fixed Payments Variable Payments The lender must use the
      ﬁxed payment amount from the trust veriﬁcation documentation as the borrower''s
      qualifying income, converting it to a monthly amount, as applicable. The lender
      must develop an average of the income received for the most recent two years.
      Note: Income received from 12 to 24 months may be considered as acceptable income
      when other positive factors are present that reasonably oﬀset a shorter income
      history. Recent Related Announcements The table below provides references to
      recently issued Announcement related to this topic. Published May 6, 2026 358
      Announcements Issue Date Announcement SEL-2026-02 March 04, 2026'
  judgment: false
