source:
  type: guide
  id: fnma-sel-b3-3.4-07
  authority: Fannie Mae Selling Guide B3-3.4-07 — Foster-Care Income
  description: Fannie Mae Selling Guide B3-3.4-07 — Foster-Care Income.
  coverage_tier: operative
obligations:
- id: fnma-sel-b3-3.4-07-full
  canonical_id: fnma-sel-b3-3.4-07-full
  section: Fannie Mae Selling Guide B3-3.4-07 — Foster-Care Income
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide B3-3.4-07 — Foster-Care 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: 'B3-3.4-07, Foster-Care Income (03/04/2026) Income received from
      a state-or county-sponsored organization for providing temporary care for one
      or more children may be considered an acceptable stable income source if the
      following requirements are met. Criteria Requirements Documentation The lender
      must obtain: • evidence of the payment amount(s) by using letters of veriﬁcation
      from the state- or county-sponsored organization(s) providing the income, and
      • receipt of income documented for the most recent 12 or 24-months, based on
      the income history requirement below, using sources including, but not limited
      to: ⚬ bank statements, ⚬ canceled checks, or ⚬ other electronic receipt of payments.
      Income History A two-year history of providing foster-care services is expected,
      however, if the borrower has not received this type of income for two full years,
      the income may still be counted as stable income if • the borrower has at least
      a 12-month history of providing foster-care services, and • the income does
      not represent more than 30% of the total gross income that is used to qualify
      for the mortgage loan. Income Continuance Lenders are not required to verify
      continuance unless they have reason to believe the income may not continue.
      Determination of Qualifying Income 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 the most recent
      12 or 24 months, based on the income history requirements above. • Decreasing:
      Calculate an average income amount using the most recent 12 months. Recent Related
      Announcements Published May 6, 2026 345 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
