Unlocking Loan Solutions with Radian: Parsonage Income

This episode is a part of Unlocking Loan Solutions with Radian, a micro-learning series for mortgage & real estate professionals, with video, audio, and job aid for each topic. Choose your preferred learning style and take your learning experience to a new level.

- Listen to the Podcast: https://www.buzzsprout.com/948847/14293761
- Download the Job Aid: https://www.radian.com/-/media/Files/Enterprise/Training/QRG/uls-jobaid-parsonage-income?utm_source=training&utm_medium=video-description&utm_campaign=uls-parsonage
- All episodes: https://www.radian.com/news-and-knowledge/training/unlocking-loan-solutions?utm_source=training&utm_medium=video-description&utm_campaign=uls-parsonage

In this episode, we explore the concept of parsonage income, also known as a housing allowance, and its impact on a mortgage loan application. We will discuss:
- What is parsonage income and where it might come from
- Potential benefits of parsonage income
- How the GSEs treat this type of income
- Documentation requirements for parsonage income
- Example scenarios to help better understand the use of parsonage income in a loan file


Resources

- Fannie Mae Selling Guide B3-3.1-01, General Income Information - Using Nontaxable Income to Adjust the Borrower’s Gross Income: https://selling-guide.fanniemae.com/Selling-Guide/Origination-through-Closing/Subpart-B3-Underwriting-Borrowers/Chapter-B3-3-Income-Assessment/Section-B3-3-1-Employment-and-Other-Sources-of-Income/1032992031/B3-3-1-01-General-Income-Information-12-13-2023.htm#Using.20Nontaxable.20Income.20to.20Adjust.20the.20Borrower.E2.80.99s.20Gross.20Income
- Fannie Mae Selling Guide, What is required for housing or parsonage allowance?: https://selling-guide.fanniemae.com/Underwriting-Borrowers/Income-Assessment/Other-Sources-of-Income/Housing-Parsonage-Income/1069265401/What-are-the-requirements-for-housing-or-parsonage-allowance.htm
- Fannie Mae Selling Guide B3-3.1-09, Other Sources of Income- Housing or Parsonage Allowance: https://selling-guide.fanniemae.com/Selling-Guide/Origination-through-Closing/Subpart-B3-Underwriting-Borrowers/Chapter-B3-3-Income-Assessment/Section-B3-3-1-Employment-and-Other-Sources-of-Income/1035647451/B3-3-1-09-Other-Sources-of-Income-12-13-2023.htm#Housing.20or.20Parsonage.20Allowance
- Freddie Mac Selling Guide 5305.2, Specific requirements for other income types: https://guide.freddiemac.com/app/guide/section/5305.2#N5305_2_HPA_040319
- Freddie Mac Selling Guide 9202.3, Borrower income documentation for workout or relief options: https://guide.freddiemac.com/app/guide/section/9202.3


Explore more complex income types, including non-taxable sources, social security income, child support and alimony.

- Foundations On Demand Course: Not Your Ordinary Income: https://www.radian.com/news-and-knowledge/training/foundations-on-demand/income/not-your-ordinary-income?utm_source=training?utm_medium=video-description&utm_campaign=uls-parsonage
- Not Your Ordinary Income: Social Security Benefits: https://videos.radian.com/watch/8bxejaL2Yk8z6rK5yKMgd4?
- Not Your Ordinary Income: Military Pay: https://videos.radian.com/watch/hEc5ukH4nxiF1mTPyEF2qW?


Sign up for Radian National Training Updates: https://www.radian.com/connect-with-us?utm_source=training&utm_medium=video-description&utm_campaign=uls-parsonage