Loan programs
Using rental income to qualify: Fannie Mae's September update
Planning to rent your current home or buy a short-term rental? Review the revised documentation rules before counting rental income in your next mortgage application.
SEL-2026-08 published September 2, 2026. Mandatory for applications from November 1, 2026, with earlier adoption encouraged.
Check the application date and the lender's adoption
Fannie Mae's September 2 announcement revises rental-income policy, including short-term rentals, departing residences, recently purchased investment properties, and lease validation. Lenders are encouraged to adopt it immediately and must apply it to applications dated November 1, 2026 or later. These are Fannie Mae requirements, not a universal rule for every mortgage program.
When you move and rent out your former home
Under the revised departing-residence rules, the lender uses supported market rents instead of a lease to establish qualifying rent. Income is limited to offsetting the former home's housing obligation. Borrowers with less than 12 months of property-management experience need six months of additional reserves for its principal, interest, taxes, insurance and association dues. Other reserve requirements still apply.
Short-term rentals need their own evidence
The revised short-term rental section covers one-unit investment properties legally permitted for this use, including local registration and licensing. It excludes income from an accessory dwelling unit. For purchases, the documentation options include a long-term market rent schedule or validated comparable short-term rental data from MLS or property-management companies. Qualifying income also depends on the transaction and management experience.
A signed lease is not sufficient in every case
The updated general guidance does not permit a lease as the basis for qualifying rental income from a departing residence or an investment property purchased within 45 days of the property being financed. Other scenarios have their own lease and validation standards. Ask the lender which documentation path applies before relying on the seller's projected rent.
Bravo's practical preparation checklist
- Identify the mortgage program, application date, property use and lender's implementation date.
- Gather rental history, tax records, property expenses and evidence of management experience for review.
- For a short-term rental, verify local permission and association restrictions for the exact address.
- Request the lender's qualifying-income calculation before making an offer based on expected rent.
Sources reviewed on September 14, 2026