source:
  type: guide
  id: fnma-sel-b3-4.3-08
  authority: Fannie Mae Selling Guide B3-4.3-08 — Employer Assistance
  description: Fannie Mae Selling Guide B3-4.3-08 — Employer Assistance.
  coverage_tier: operative
obligations:
- id: fnma-sel-b3-4.3-08-full
  canonical_id: fnma-sel-b3-4.3-08-full
  section: Fannie Mae Selling Guide B3-4.3-08 — Employer Assistance
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide B3-4.3-08 — Employer Assistance
    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: 'B3-4.3-08, Employer Assistance (09/29/2015) Introduction This
      topic contains information on employer assistance, including: Forms of Employer
      Assistance Minimum Borrower Contribution Requirements Documentation Requirements
      Forms of Employer Assistance The employer assistance may be in the form of:
      a grant, a direct, fully repayable second mortgage or unsecured loan, a forgivable
      second mortgage or unsecured loan, or a deferred-payment second mortgage or
      unsecured loan. A borrower of a mortgage loan secured by a principal residence
      may use funds provided by an employer to fund all or part of the down payment
      or closing costs subject to the minimum borrower contribution requirements below.
      Employer assistance can also be used for ﬁnancial reserves for all types of
      assistance with the exception of unsecured loans (which may only be used for
      the down payment and closing costs). Employer assistance funds are not allowed
      on a second home or an investment property. Funds must come directly from the
      employer, including through an employer-aﬃliated credit union. When employer
      assistance is extended as a secured second mortgage, the transaction may be
      structured as a Community Seconds (see B5-5.1-02, Community Seconds Loan Eligibility)
      or it must satisfy Fannie Mae''s eligibility criteria for mortgages that are
      subject to subordinate ﬁnancing (see B2-1.2-04, Subordinate Financing). Published
      May 6, 2026 433 If the secured second mortgage or unsecured loan does not require
      regular payments of either principal and interest or interest only, the lender
      does not need to calculate an equivalent payment for consideration as part of
      the borrower’s monthly debt. If regular payments are required for the secured
      second mortgage, the payments must be included in the calculation of the debt-to-income
      ratio. Minimum Borrower Contribution Requirements The following table describes
      the minimum borrower contribution requirements for transactions that contain
      employer assistance. LTV, CLTV, or HCLTV Ratio Minimum Borrower Contribution
      Requirement from Borrower’s Own Funds 80% or less One- to four-unit principal
      residence A minimum borrower contribution from the borrower’s own funds is not
      required. All funds needed to complete the transaction can come from employer
      assistance. Greater than 80% One-unit principal residence A minimum borrower
      contribution from the borrower’s own funds is not required. All funds needed
      to complete the transaction can come from employer assistance. Two- to four-unit
      principal residence The borrower must make a 5% minimum borrower contribution
      from their own funds. After the minimum borrower contribution has been met,
      employer assistance can be used to supplement the down payment, closing costs,
      and reserves (except for unsecured loans, which may not be applied to reserves).
      See B5-6-02, HomeReady Mortgage Underwriting Methods and Requirements, for HomeReady
      mortgage minimum borrower contribution and down payment requirements. Documentation
      Requirements The lender must document: that the program is an established company
      program, not just an accommodation developed for an individual employee. Published
      May 6, 2026 434 the dollar amount of the employer’s assistance. an unsecured
      loan from an employer with an award letter or legal agreement from the note
      holder and must disclose the terms and conditions of the loan. the terms of
      any other employee assistance being oﬀered to the borrower (such as relocation
      beneﬁts or gifts). that the borrower received the employer assistance funds
      directly from the employer (or through the employer-aﬃliated credit union).
      Recent Related Announcements There are no recently issued Announcements related
      to this topic.'
  judgment: false
