First-Year Admissions Application (Page 7 of 9) in pdf

Note: The following instructions highlight certain sections of the form.

Introductory Statement

We recognize that the introductory paragraph of Form 1003 differs slightly from the

introductory paragraph in the Uniform Residential Loan Application found on Freddie

Mac's website, Freddie Mac Form 65. However, because we have determined that

these differences are not material, Fannie Mae will deem either version to comply

with our requirements for use of the Uniform Residential Loan Application.

V. Monthly Income and Combined Housing Expense Information

Gross Monthly Income: If the net cash flow for an investment property is a positive

number , it should be listed as "net rental income." If it is a negative number, it must

be included in the applicant's monthly obligations. If the property is a two- to four-

unit property for which the applicant occupies one of the units as a principal

residence, the monthly rental income should be listed as "net rental income."

Combined Monthly Housing Expense: The present monthly housing expenses for

the borrower and the co- borrower should be listed on a combined basis. The

proposed monthly housing expense for a two- to four-unit property in which the

applicant will occupy a unit as a principal residence should reflect the monthly

payment (PITIA) for the subject property. For all one- to four-unit investment

properties the present monthly housing expense should reflect the applicant's

principal residence.

VI. Assets and Liabilities

When the borrower's and co-borrower's assets and liabilities are not sufficiently

joined to make a combined statement meaningful, a separate Statement of Assets

and Liabilities (Form 1003A) should be completed for the co-borrower.

VII. Details of Transaction

The purchase price shown on Line "a" under the "Details of Transaction" should not

include any discounts or rebates or other allowances paid or allowed to the

purchaser. For refinancing, the amount being refinanced should be shown on Line

"d" -- Refinance. The figure should include the total amount of all existing liens plus

the costs of improvements that have been -- or will be -- made. Lines "a", "b", and "c"

should not be used to describe a refinance transaction.

VIII. Declarations

Noncitizen Applicants: If an applicant indicates in his response to Question J that he is

not a U.S. citizen, and also indicates in his response to Question K that he is not a

permanent resident alien, the lender may wish to ask whether he is a nonpermanent

resident alien or otherwise is lawfully present in the United States.

Fannie Mae Form 1003 Instructions (Form Rev. 6/09, Instructions 12/13)

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First-Year Admissions Application Page 7