If non-traditional credit is used, four sources should be developed. Borrower s credit report should reflect a willingness to repay debt in a timely fashion. Borrowers will not be penalized for frequent changes in jobs if they maintained income continually despite the changes. Gaps in employment over the past 24 months is allowable, provided no gap exceeds 30 days. Borrowers will pay a monthly mortgage insurance fee.
Income needs to continue for the next two years.
While this income is not taxable, its receipt must be documented. Foster care income will be considered if verified as continuous for a least one year and is likely to continue in the foreseeable future. Seasonal income such as agricultural, is also acceptable to be considered as qualifying income. Borrower must have a 12 month history of receipt and it must continue for the foreseeable future. Borrower s satisfactory completion of pre-purchase homeownership counseling from Consumer Credit Counseling Services or another Freddie Mac approved source.