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 monthl y housing expenses for the borrower and the co-borrower shoul d 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.
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.
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. Line s "a", "b", and "c" should not be used to describe a refinance transaction.
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) Page 2 of 4