A borrower receives $900 a month in child support under an order that ends in 26 months. If the program requires at least three years of remaining support income, does this order satisfy the continuance requirement?
Correct Answer
A) Not usable: continuance of at least 3 more years must be shown
A. Twenty-six remaining months does not meet the stipulated three-year requirement. Convert three years to 36 months. 26 months is 10 months short. A current enforceable order does not extend its expiration date. Scope and exceptions: This applies the stated program’s continuance test, not a universal rule for every loan. Receipt history and other documentation are separate requirements. Source: B3-3.1-01, Continuance of Income (10/07/2026) — https://selling-guide.fanniemae.com/sel/b3-3.1-01/general-income-information
Why This Is the Correct Answer
A. Twenty-six remaining months does not meet the stipulated three-year requirement. Convert three years to 36 months. 26 months is 10 months short. A current enforceable order does not extend its expiration date. Scope and exceptions: This applies the stated program’s continuance test, not a universal rule for every loan. Receipt history and other documentation are separate requirements.
Why the Other Options Are Wrong
Option B: Not usable: support income is never counted as qualifying income
This falsely excludes support income categorically.
Option C: Usable at half, or $450, for the 26 months that remain on it
Reducing the amount does not lengthen the remaining payment period.
Option D: Usable in full, because the order is current and enforceable
Current enforceability does not satisfy the required duration.
Exam Tip
Income amount, receipt and future duration answer different underwriting questions.
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A construction-to-permanent note states that conversion requires completion, a certificate of occupancy, and no unresolved liens. Construction is finished, but a mechanic's lien remains. What should happen?
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