Income · Fannie Mae Selling GuideMilitary pay, allowances and VA benefits as mortgage income

Service members and veterans often qualify on more than base pay. Under Fannie Mae's Selling Guide (B3-3.3-05), military income is documented with the most recent Leave and Earnings Statement (LES), dated within 120 days of the note date, plus a verbal verification of employment. Active-duty pay needs no minimum history; National Guard and Reserve income needs 12 months. Allowances – flight or hazard pay, rations, clothing, quarters, proficiency pay and others – can count in full along with base pay, unless there's an indication they'll be lowered (then the lower amount is used) or stopped, so the lender looks closely at allowances tied to location or duties. VA benefits (B3-3.4-18) are verified with a statement from VA, an award letter or benefit statement, a bank statement, a signed tax return or a 1099, plus evidence that at least one payment will arrive on or before the first mortgage payment. No minimum history is needed; the income must be expected to continue at least three years from application, except VA retirement and long-term disability benefits, which don't need that check. VA education benefits aren't acceptable income because they're offset by education expenses.