Fannie Mae updates employment checks and income documentation

What this means for your plan

Lenders can adopt more flexible employment-verification methods now, but verification is still required and existing timing rules remain. A separate provision for qualifying with K-1 income from less-than-25% business ownership applies to applications dated December 2, 2026 or later; rental-only K-1 income is excepted.

For income subject to a continuance requirement, the changes include measuring that period from application instead of the note date, and clarifying evidence of acceptance for eligible job offers. Different income sources still require different documentation. These are Fannie Mae rules, not automatic changes to every mortgage program.

For a Seattle-area purchase or refinance, make a document plan before relying on income that is changing or time-limited. List the income source, who can verify it, and any expected change before closing. Ask the lender to identify remaining conditions in writing; neither this announcement nor a preapproval guarantees funding.

Your next step

Tell your loan officer about a job offer, income end date or K-1 ownership. Ask which rule and application date apply and who will obtain the remaining verification.

Related guidance

• Income eligibility and documentation
• Preapproval and employment checks
• Elegibilidad e ingresos en español
• Washington first-time buyer guide