Loan impact
From the announcement text · verifiedApplies to: Fannie Mae loans using rental income for qualifying with application dates on or after Dec. 1, 2026, and UAD 3.6 appraisal reports; NACLI loans benefit from expanded eligibility.
Scope differs by change; see each change below.
- Investor
- Fannie Mae
- Programs
- Conventional
- Affected areas
- Report format; Rental income; Short term rental; Eligibility; Highest and best useGuide Section B3-3.8
- Effective
- Applications dated on or after Dec 1, 2026Sellers may implement immediately
- Applicability confidence
- Verified: every row above is supported by the source text
Supporting quotes from the announcement
- affected areas“We have revised our rental income policy to simplify its overall structure, improve clarity, address policy gaps, and better align policy with real-world execution.”
- affected areas“Effective: This policy change is effective immediately for appraisal reports completed using UAD 3.6.”
- affected areas“This policy update expands NACLI eligibility by allowing lenders to sell NACLI loans to Fannie Mae without obtaining special approval.”
- guide sections“The following tables provide additional details regarding the reorganization and updates made to Chapter B3-3.8, Rental Income.”
What changed
From the announcement text · Sections B3-3.8-03, B3-3.8-06, B3-3.8-05, B3-3.8-01, B3-3.8, B5-4.2-01| Requirement | Previously | Now |
|---|---|---|
| Short-term rental income requirementsNewRequiredSection B3-3.8-03 | New requirement | New eligibility, documentation and conservative qualifying income requirements for short-term rental income |
| Applies when: Short term rental used, or earlier if the seller adopts now | ||
| Investment properties purchased within 45 days of subject propertyNewRequiredSection B3-3.8-06 | New requirement | Standardized eligibility, documentation and calculation requirements for rental income from such properties |
| Applies when: Qualifying income includes rental income, or earlier if the seller adopts now | ||
| Departing residence rental income frameworkNewRequiredSection B3-3.8-05 | New requirement | Relies on market-supported rents, reserve requirements, and PITIA offset limitations rather than lease agreements |
| Applies when: Qualifying income includes rental income, or earlier if the seller adopts now | ||
| Lease agreement standardsNewRequiredSection B3-3.8-01 | New requirement | Minimum lease terms, enhanced validation, restrictions on non-arm's-length leases |
| Applies when: Qualifying income includes rental income, or earlier if the seller adopts now | ||
| Rental income chapter reorganizationClarifiedSection B3-3.8 | Not stated | Chapter B3-3.8 split into topics B3-3.8-01 through B3-3.8-06 with relocated guidance |
| Highest and best use for UAD 3.6 appraisalsChangedRequired | Previously: Highest and best use required to be the property's present use; property residential in nature | Highest and best use, as improved or as proposed, must be residential; property must be primarily residential one- to four-unit with any non-residential use subordinate |
| Applies when: Uad version is 3_6 | ||
| NACLI eligibility expansionRelaxedSection B5-4.2-01 | Not stated | Lenders may sell NACLI loans to Fannie Mae without obtaining special approval; eligibility extended to federally recognized tribes approved for HUD Section 184 or with a Fannie Mae MOU |
What to do
AWACS interpretation · not source languageWhat to review: First review the mandatory changes: the restructured rental income policy for application dates on or after Dec. 1, 2026 (early implementation allowed) and the immediate highest and best use requirements for UAD 3.6 appraisals; then note that lenders may use the expanded NACLI eligibility to sell NACLI loans without special approval, if they choose.
Apply the new short-term rental income requirements, the 45-day investment property requirements, the departing residence framework and the strengthened lease agreement standards to all loans with application dates on or after Dec. 1, 2026, where rental income is used (short-term rental requirements apply where short-term rental income is used).
Apply the revised highest and best use requirement to appraisal reports completed using UAD 3.6, so the property is primarily a residential one- to four-unit property with any non-residential use subordinate and the highest and best use, as improved or as proposed, is residential.
QC implications
- Test that loans with application dates on or after Dec. 1, 2026 that use rental income follow the restructured rental income policy, including lease standards, departing residence treatment and the 45-day investment property rules.
- Sample loans using short-term rental income to confirm the new eligibility, documentation and conservative qualifying income requirements were applied.
- Check that loans with earlier application dates which adopted the rental changes early did so consistently, since early adoption is allowed.
- Verify that UAD 3.6 appraisal reports state a residential highest and best use as improved or as proposed, and that the property is primarily residential one- to four-unit with any non-residential use subordinate.
- Confirm that any NACLI loans sold without special approval fall within the expanded eligibility, which is optional for the lender.
Source and record
Version 1 · archivedChecks passed
- Schema valid
- Effective quotes verbatim
- Document ID appears in the source
- Doc id matches catalog
- Mandatory status is backed by requirement language
- Mandatory entries have requirement language
- Published on present
- Title summary length
- Controlled vocabulary
- No placeholder tokens
- Source link resolves
- Loan impact quotes verbatim
- Loan impact vocabulary
- Changes quoted
- Impact type consistent
- Every required change is backed by obligation language
- Only new or tightened changes are marked required
- Loan impact covers every required change
- Quotes are complete sentences
- Unflagged must
- Diff complete
- Mandatory date resolved
- Audience verbatim
- Scope residential
- Out of scope
- Published in window
- Interpretation schema valid
- Interpretation separate
Source
- Selling Guide Announcement SEL-2026-08 (official) ↗ (opens in a new tab)
- Archived copy, SHA-256 e9c343c5f0f4…
- Report an error · How versions work