What we verified in “Foreign income or a short U.S. work history and your mortgage”

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The statements with rules, figures or dates, with the exact place in the source and the date we checked them.

1. According to Fannie Mae's Selling Guide (B3-3.2-02, dated March 4, 2026), the lender must evaluate whether your work history reflects a reliable pattern of employment over the most recent two years, and a shorter history may be eligible if your profile includes positive factors that offset it; borrowers who change jobs often but earn consistent and predictable income are considered to have reliable income; and employment gaps in the most recent 12 months may make employment appear unstable, so the lender must carefully analyze whether your current job is likely to continue.

   Sources 1 · Selling Guide B3-3.2-02, Standards for Employment-Related Income (03/04/2026): 'Lenders must evaluate the borrower's work history to determine whether it reflects a reliable pattern of employment over the most recent two years'; 'A shorter employment history may be considered eligible for qualifying purposes if the borrower's employment profile includes positive factors that reasonably offset the shorter employment history'; 'Job Changes Borrowers who change jobs frequently, but who are nevertheless able to earn consistent and predictable income, are considered to have a reliable flow of income'; 'Employment Gaps Borrowers with employment gaps during the most recent 12 months may appear to have unstable employment' · Checked October 31, 2026

2. According to the same Fannie Mae section, if you qualify with several jobs at once, a two-year history for each is recommended, but income received for a shorter time (no less than 12 months) may be accepted with positive factors; and when your history includes different employers, you may not have any gap of more than one month in the most recent 12 months, unless the work is seasonal.

   Sources 1 · Selling Guide B3-3.2-02, 'Multiple Jobs': 'A two-year history for each income source is recommended; however, income that has been received for a shorter period of time (but, no less than 12 months) may be considered as acceptable income'; 'When the borrower's employment history includes different employers, in no instance may the borrower have any gap in employment greater than one month in the most recent 12-month period, unless the employment is considered seasonal income' · Checked October 31, 2026

3. According to Fannie Mae's Selling Guide (B3-3.2-02), foreign income is earned by a borrower employed by a foreign corporation or foreign government and paid in foreign currency; to use it you need copies of your signed federal income tax returns for the most recent two years that include that income; the lender must meet the requirements for the source and type of income; all documents of foreign origin must be in English or come with a complete and accurate translation; and all income must be converted to U.S. dollars.

   Sources 1 · Selling Guide B3-3.2-02, 'Foreign Income': 'Foreign income is earned by a borrower who is employed by a foreign corporation or a foreign government and is paid in foreign currency'; 'Copies of signed federal income tax returns for the most recent two years that include foreign employment-related income'; 'All documents of a foreign origin must be completed in English, or the lender must provide a translation'; 'ensure the translation is complete and accurate'; 'All income must be translated to U.S. dollars' · Checked October 31, 2026

4. According to Fannie Mae's Selling Guide (B3-3.1-01, dated October 7, 2026), borrowers who are not U.S. citizens must meet the same employment and income verification requirements as citizens, regardless of the type or source of income; and income paid in virtual currency, such as cryptocurrency, cannot be used to qualify.

   Sources 3 · Selling Guide B3-3.1-01, General Income Information (10/07/2026): 'Borrowers who are not U.S. citizens must meet the same employment and income verification requirements that are required for borrowers who are U.S. citizens, regardless of the type or source of income'; 'Any income paid to or earned by the borrower in the form of virtual currency, such as cryptocurrencies, is not eligible to be used to qualify for the loan' · Checked October 31, 2026

5. According to Fannie Mae's Selling Guide (B3-3.3-03, dated October 7, 2026), if you will start a new job under an offer or contract, the lender reviews the signed, non-contingent offer, which must identify the employer and you, the position, the type and rate of pay and the start date; you may not be employed by a family member or an interested party to the sale; under the option where the loan is delivered before your first paystub, the purchase must be of a one-unit principal residence, you qualify only with fixed base pay and your start date must be no earlier than 30 days before or no later than 90 days after the note date; and under that option you need, beyond normal reserves, six months of house payments or resources to cover your debts and the house payment until you start work, plus one month.

   Sources 4 · Selling Guide B3-3.3-03, Employment Offers or Contracts (10/07/2026): 'fully executed and non-contingent offer or contract'; 'the employer and the borrower'; 'position, type and rate of pay, and start date'; 'The borrower must not be employed by a family member or by an interested party to the transaction'; 'purchase transaction, principal residence, one-unit property'; 'qualified using only fixed-base income'; 'The borrower's start date must be no earlier than 30 days prior to the note date OR no later than 90 days after the note date'; 'six months' PITIA for the subject property; or financial resources sufficient to cover the monthly liabilities ... for the number of months between the note date and the employment start date, plus one' · Checked October 31, 2026

6. According to HUD Handbook 4000.1, for all employment income the lender must verify your most recent two years of employment and income and your current employment; if you have not been with the same employer for the past two years, it can use W-2 forms, written or electronic verifications of employment, or evidence that you were enrolled in school or the military during the most recent two full years.

   Sources 5 · Handbook 4000.1, II.A.4.c.ii(C), pp. 224–225: 'the Mortgagee must verify the Borrower's most recent two years of employment and income, and document current employment'; '(3) Past Employment Documentation'; 'If the Borrower has not been employed with the same employer for the previous two years'; 'IRS Form W-2(s); WVOE(s); EVOE(s)'; 'evidence supporting enrollment in school or the military during the most recent two full years' · Checked October 31, 2026

7. According to Handbook 4000.1, if you had a gap in employment of six months or more (an extended absence), the lender may count your current income if it verifies that you have been in your current line of work for at least six months at case number assignment and had a two-year work history before the absence; and if you changed employers more than three times in the past 12 months, or changed lines of work, the lender must document more carefully that your income is stable, for example with your training or education for the new position or proof of rising income or benefits, except in fields where working for several employers is normal, such as temp agencies or union trades.

   Sources 5 · Handbook 4000.1, II.A.4.c.xi(A)–(B), pp. 231–232: 'If the Borrower has changed employers more than three times in the previous 12-month period, or has changed lines of work'; 'Additional analysis is not required for fields of employment that regularly require a Borrower to work for various employers (such as Temp Companies or Union Trades)'; 'transcripts of training and education demonstrating qualification for a new position'; 'continual increases in income and/or benefits'; 'For Borrowers with gaps in employment of six months or more (an extended absence)'; 'employed in the current line of work for at least six months at the time of case number assignment'; 'a two-year work history prior to the absence from employment' · Checked October 31, 2026

8. According to Handbook 4000.1, foreign income is income you receive from sources outside the United States, from a foreign corporation or foreign government, paid in foreign currency; the lender may count it if you received it for the previous two years and it is reasonably likely to continue; it must get your complete tax returns for the most recent two years showing that income, with all schedules; if documents are not in English, it must provide a complete and accurate translation of each one and convert the currency to dollars; and it must average the income over the previous two years.

   Sources 5 · Handbook 4000.1, II.A.4.c.xii(R) 'Foreign Income', pp. 249–250: 'income received by a Borrower from sources located outside of the United States by a foreign corporation or a foreign government and is paid in foreign currency'; 'if the Borrower has received this income for the previous two years and it is reasonably likely to continue'; 'complete individual Tax Returns showing Foreign Income for the most recent two years, including all schedules'; 'provide a complete and accurate translation for each document and convert foreign currency to U.S. dollars'; 'The Mortgagee must average the Foreign Income over the previous two years' · Checked October 31, 2026

9. According to Handbook 4000.1, the lender must reverify your employment within 10 days before the note date, and electronic reverification data must be no more than 30 days old.

   Sources 5 · Handbook 4000.1, II.A.4.c.ii(C)(1)–(2), p. 224: 'Reverification of Employment must be completed within 10 Days prior to the date of the Note'; 'Electronic reverification employment data must be current within 30 days of the date of the verification' · Checked October 31, 2026

10. According to Fannie Mae's Selling Guide (B3-3.2-01, dated March 4, 2026), the lender must verify employment income for every borrower whose income is used to qualify; your most recent paystub may be dated no earlier than 30 days before the initial application and must include year-to-date earnings; and W-2 forms must cover the most recent one- or two-year period, depending on the type of income.

    Sources 2 · Selling Guide B3-3.2-01, Standards for Employment and Income Documentation (03/04/2026): 'The lender must verify employment income for all borrowers whose income is used to qualify for the loan'; 'The most recent paystub must be dated no earlier than 30 days prior to the initial loan application date and it must include all year-to-date earnings'; 'IRS W-2 forms must cover the most recent one- or two-year period, based on the documentation requirements for the particular income type' · Checked October 31, 2026

11. According to the IRS, the VITA and TCE programs offer free basic tax return preparation to qualified individuals; the IRS does not set a program-wide income limit, though individual sites may set their own, and the program generally serves taxpayers who meet the Earned Income Tax Credit (EITC) income guidelines.

    Sources 6 · Free tax return preparation for qualifying taxpayers: 'offer free basic tax return preparation to qualified individuals'; 'While the IRS does not set a program-wide income limit, individual VITA sites may establish their own'; 'generally focuses on serving taxpayers who meet the Earned Income Tax Credit (EITC) income guidelines' · Checked October 31, 2026

12. According to the CFPB, the counseling agencies on its list are approved by HUD and can offer independent advice about whether a set of mortgage loan terms fits your goals and situation, often at little or no cost.

    Sources 7 · Find a housing counselor: 'approved by the U.S. Department of Housing and Urban Development (HUD), and they can offer independent advice about whether a particular set of mortgage loan terms is a good fit based on your objectives and circumstances, often at little or no cost to you' · Checked October 31, 2026