source:
  type: guide
  id: fnma-sel-b3-5.4-02
  authority: Fannie Mae Selling Guide B3-5.4-02 — Number and Types of Nontraditional
    Credit References
  description: Fannie Mae Selling Guide B3-5.4-02 — Number and Types of Nontraditional
    Credit References.
  coverage_tier: operative
obligations:
- id: fnma-sel-b3-5.4-02-full
  canonical_id: fnma-sel-b3-5.4-02-full
  section: Fannie Mae Selling Guide B3-5.4-02 — Number and Types of Nontraditional
    Credit References
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide B3-5.4-02 — Number and Types of Nontraditional
      Credit References
    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: 'B3-5.4-02, Number and Types of Nontraditional Credit References
      (02/04/2026) Introduction This topic contains information on nontraditional
      credit references, including Number of Nontraditional Credit References Required
      Eligible Types of Nontraditional Credit References Number of Nontraditional
      Credit References Required The number of nontraditional credit references that
      must be documented for a borrower without a credit score Published May 6, 2026
      489 diﬀers depending on the underwriting method and loan product, as described
      in the table below. Number of Nontraditional Credit References Required Underwriting
      Method Loans other than HomeReady Loans HomeReady Loans Manually underwritten
      loans • Four credit references for each borrower without a credit score • Three
      credit references for each borrower without a credit score • If there is a borrower
      on the loan without a credit score who cannot document any nontraditional credit
      references (because the borrower has none), the transaction is still eligible,
      provided no more than 30% of the qualifying income for the loan comes from that
      borrower. Loans underwritten through DU DU messages will specify when a nontraditional
      credit history must be documented. • If DU requires a nontraditional credit
      history to be documented, at least two credit references for each borrower are
      required. • No additional documentation is required if DU conducts a cash ﬂow
      assessment and issues a message that the third-party asset veriﬁcation report
      may be used to satisfy the requirements in B3-5.4-03, Documentation and Assessment
      of a Nontraditional Credit History. Eligible Types of Nontraditional Credit
      References The types of credit references that can be used to develop a nontraditional
      credit history are those that require the borrower to make periodic payments
      on a regular basis with intervals that are no longer than every three months.
      Note: There is an exception to allow a longer interval for the payment of real
      estate taxes on the borrower''s principal residence as described below. The
      lender should consider whether the borrower has any eligible housing expenses
      and then review other nontraditional credit references. The lender must conduct
      an informational interview with the borrower to identify all credit references
      covering the most recent consecutive 12 months. If the lender is requesting
      a nontraditional mortgage credit report from a consumer reporting agency, the
      agency will conduct the borrower interview and obtain the list of available
      nontraditional credit references. In all cases, the payment history for each
      credit reference must be documented for the most recent consecutive 12-month
      period. All credit references must be included, not just those that reﬂect acceptable
      performance. Acceptable Housing Payments Published May 6, 2026 490 Loans underwritten
      through DU where a nontraditional credit history is required must include housing
      payments as one reference of nontraditional credit. Loans underwritten manually
      are not required to have a housing payment as one reference of nontraditional
      credit. However, if no borrower on the loan has a housing history, a minimum
      of 12 months’ reserves must be documented. The following are examples of acceptable
      housing payments: Rent: payments made to a landlord or property management company;
      Privately held mortgage loan: housing payments not reported to the credit bureaus,
      such as contract for deed payments and other similar arrangements, provided
      the payments are related to the borrower''s principal residence; and Real estate
      taxes: payments made on the principal residence, regardless of payment frequency
      (for homes owned free and clear). Other Nontraditional Credit References In
      addition to a housing payment, the following other nontraditional credit references
      may be used to further develop additional nontraditional credit history for
      the borrower: Utilities, such as electricity, gas, water, telephone service,
      television, and internet service providers. If utilities are included in the
      housing payment, they cannot be considered a separate nontraditional credit
      reference. Utilities can be considered a credit reference only if the payment
      history can be separately documented. Medical insurance coverage (excluding
      payroll deductions) Automobile insurance payments Cell phone payments Life insurance
      policies (excluding payroll deductions) Payments for property or renter’s insurance
      Payments to local stores, such as department stores, furniture stores, appliance
      stores Rental (or lease) payments for durable goods, such as automobiles Payment
      of medical bills Payment of school tuition Payments for childcare A loan obtained
      from an individual, provided the repayment terms can be documented in a written
      agreement Checking account, savings account, voluntary payments made to a payroll
      savings plan or contributions to a stock purchase plan, provided the records
      reﬂect an increasing balance as a result of periodic deposits over at least
      the most recent 12 months. Contributions must have been made no less than quarterly.
      Wire remittance statements demonstrating a consistent amount of funds remitted
      over the most recent 12-month period. Recent Related Announcements The table
      below provides references recently issued Announcements that are related to
      this topic. Announcement Issue Date Announcement SEL-2026-01 February 04, 2026
      Published May 6, 2026 491 Announcement Issue Date Announcement SEL-2024-01 February
      07, 2024 Announcement SEL-2023-01 February 01, 2023'
  judgment: false
