Relocating? Note Mortgage Changes for Trailing Spouse Income

Fannie Mae and Freddie Mac Tighten Rules for Trailing Spouse Income

On June 8, 2009, Fannie Mae, one of the nation's largest mortgage players, revised the underwriting rules for the treatment of trailing spouse income. Previously, the income of a trailing spouse could be used to qualify for a mortgage allowing the transferring couple to qualify for a larger mortgage.  Now, Fannie Mae will not count the income.

Freddie Mac will count trailing spouse income under stricter guidelines:

• Income cannot exceed 33% of the total qualifying income
• Income cannot be from self employment
• Spouse must have been continuously employed in the same occupation for at least two years
• Spouse must provide a letter of intent to find employment