When can a lease be used?
A signed lease is useful documentation, but Fannie does not allow it to replace tax-return rental history in every scenario.
Fannie permits lease-based income in specified situations
Examples include purchase transactions with an existing lease transferred to the borrower, properties acquired after the last tax-return filing, certain significant rental interruptions, or properties placed in service in the current year.
Two important prohibitions
Under Fannie's current general rule, a lease cannot be used to determine qualifying rental income for a departing residence or an investment property purchased within 45 days of the subject-property application. Those scenarios have their own rules.
New lease term
For certain newly executed leases on properties not yet reported on the borrower's tax return, Fannie requires at least a six-month term and the initial payment due no later than the first payment due date of the subject mortgage.
Official guide baseline
Fannie Mae Selling Guide · Freddie Mac Seller/Servicer Guide
Rental-income rules are transaction-, property-, ownership-history- and management-experience-specific. Current guide controls.