James Lutz at Mortgage 1 Inc - Keystone Branch

James Lutz at Mortgage 1 Inc - Keystone Branch Loan Officer at Mortgage One - Keystone NMLS 871438 Residential mortgage lender

Fannie Mae issued announcement SEL-2026-08 with new rental income guidelines effective 11-1-26.   We are still validatin...
09/04/2026

Fannie Mae issued announcement SEL-2026-08 with new rental income guidelines effective 11-1-26. We are still validating all the changes but the major items are shown below. Note these are not the full guidelines. I have included some links that will provide more information.

Stricter lease validation. https://selling-guide.fanniemae.com/sel/b3-3.8-01/rental-income
• For a newly executed lease—dated within two months of the application—on a property not yet reported on the borrower’s tax return, the lease term must run for at least 6 months.
• Not involve a family member or another interested party.
• Require evidence of payment, normally two months of bank statements showing receipts. Newer leases may instead use the deposited security deposit and first month’s rent.

Market Rent https://selling-guide.fanniemae.com/sel/b3-3.8-02/rental-income-subject-property
• When the lease amount is not reasonably supported by market rent, the lender must obtain additional support and document its analysis or use the lower amount.

New departing-residence rules. https://selling-guide.fanniemae.com/sel/b3-3.8-05/rental-income-non-subject-property-departing-residence
• A borrower converting a current residence to a rental can no longer qualify using a lease agreement.
• Rent must be supported by an appraisal with market rent, OR a comparable rent schedule (Form 1007) OR market-analysis data, including at least three comparable rentals when market tools are used.
• The lender applies the standard 75% factor, and positive income may only offset the departing residence’s PITIA. Negative income is counted as a debt.
• Borrowers with less than 12 months of property-management experience must also have six months of additional PITIA reserves.

New short-term-rental framework. https://selling-guide.fanniemae.com/sel/b3-3.8-03/rental-income-subject-property-short-term-rental
• 1-unit investment property only.
• Not allowed from an ADU.
• Property must be legally permitted to operate as a short term rental including compliance with local registration and licensing requirements
• Purchases require a comparable rent schedule (Form 1007) Or validated rental data from at least 3 other short term rentals in the same market area with rental rates and number of days rented.
• Refinances require 1040s with schedule 1 and schedule E. If not reported on 1040s yet you also need Form 1007 OR validated rental data from at least 3 other short term rentals in the same market area with rental rates and number of days rented.
• For purchases or refis where the property is not reported on 1040s only 50% of gross rent is used before subtracting PITIA.
• Any positive result may only offset PITIA—it cannot create additional qualifying income.

Special treatment for recently purchased rentals. (within 45 days of the subject-property application) https://selling-guide.fanniemae.com/sel/b3-3.8-06/rental-income-non-subject-property-investment-properties-purchased-within-45-days-subject-property
• A lease cannot be used.
• Rent must be supported by an appraisal, Form 1007, or—in certain multi-unit cases—market-analysis data using at least three comparables.
• The lender uses 75% of gross rent, less PITIA.
• Positive income may only offset PITIA; a loss must be included in DTI.

Guide restructuring. Rental-income guidance was divided into six scenario-based topics:
• general rules
• subject property
• short-term rental
• non-subject property
• departing residence
• property purchased within 45 days

B3-3.8-06, Rental Income from Non-Subject Property: Investment Properties Purchased within 45 Days of the Subject Property (09/02/2026) This topic contains requirements for documentation and qualifying rental income for investment properties purchased within 45 days of the subject property applicati...

Preparation is half the mortgage process. Learn what documents to gather, what to avoid, and the steps to take to apply ...
09/03/2026

Preparation is half the mortgage process. Learn what documents to gather, what to avoid, and the steps to take to apply with confidence. Read more:

Get your mortgage application checklist right the first time. Mortgage 1 helps you gather documents, compare loans, and apply with confidence.

Appraisal and inspection both matter before closing, but for different reasons. One helps confirm the loan's value, whil...
09/02/2026

Appraisal and inspection both matter before closing, but for different reasons. One helps confirm the loan's value, while the other helps you understand the home’s condition.

Knowing what to expect can make buying feel a lot less overwhelming. If you are ready to buy soon, call me at 586.362.0125 with any questions or to walk through the process.

Touring homes can be exciting, but don’t let pretty staging be the only thing you notice. Pay attention to how the home ...
08/26/2026

Touring homes can be exciting, but don’t let pretty staging be the only thing you notice. Pay attention to how the home functions for your lifestyle, from storage and layout to major systems and long-term fit.

Ready to start your buying journey? Call me at 586.362.0125, or begin your preapproval using my personal Pro SNAP link: https://hubs.la/Q04snC-L0

Planning ahead for upfront costs can help you avoid surprises as you approach closing day. The exact amount depends on y...
08/19/2026

Planning ahead for upfront costs can help you avoid surprises as you approach closing day. The exact amount depends on your loan, purchase price, credits, and final closing figures. Give me a call at 586.362.0125 to see what that might look like for you.

Ready to start planning? Begin your preapproval using my personal Pro SNAP link → https://hubs.la/Q04snB_W0

If your lease renewal is coming up, this could be a great time to explore buying options. Getting preapproved can help y...
08/12/2026

If your lease renewal is coming up, this could be a great time to explore buying options. Getting preapproved can help you compare real numbers and see if homeownership is closer than you think.

Want to compare your options? Call me at 586.362.0125, or start your preapproval using my personal link → https://hubs.la/Q04rQc3k0

Think 20% down is the only way to go conventional? Not always. Your credit profile, savings, and overall application can...
08/05/2026

Think 20% down is the only way to go conventional? Not always. Your credit profile, savings, and overall application can all affect what conventional loan options may be available. Want to see what may fit your situation? Call me at 586.362.0125, or start your preapproval using my personal link → https://hubs.la/Q04rwvQ20

A large bonus or inheritance can do more than sit in savings. Learn what a mortgage recast is, how it lowers your paymen...
08/04/2026

A large bonus or inheritance can do more than sit in savings. Learn what a mortgage recast is, how it lowers your payment, and how it compares to refinancing. Read more:

A mortgage recast lowers your monthly payment after a lump-sum payment, keeping your rate and term. See how it compares to refinancing.

Have home improvements or a major project on your summer list? A HELOC can provide you with flexible access to funds usi...
07/29/2026

Have home improvements or a major project on your summer list? A HELOC can provide you with flexible access to funds using the equity in your home.

Call me at 586.362.0125 to see if you qualify!

Thinking about buying a home? Pre-approval gives you a clearer picture of your budget, helps narrow your search, and pre...
07/22/2026

Thinking about buying a home? Pre-approval gives you a clearer picture of your budget, helps narrow your search, and prepares you to act when the right home comes along.

Take the first step today and start your pre-approval using my personal Pro SNAP link → https://hubs.la/Q04nffMs0

Address

45581 Village Boulevard
Shelby Township, MI
48315

Telephone

+15863620125

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