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A self-employed borrower's net business income was $84,000 in 2024 and $96,000 in 2025, with a stable business. Using a two-year average, what is the monthly qualifying income?
Two-year average: ($84,000 + $96,000) / 2 = $90,000 a year; $90,000 / 12 = $7,500 a month (Fannie Mae Selling Guide, Chapter B3-3 (Income Assessment) requires analysis of the most recent two years for most self-employed borrowers). $8,000 uses only 2025; $7,000 uses only 2024; $3,750 divides the annual average by 24 instead of 12. Source: Fannie Mae Selling Guide, Chapter B3-3 (Income Assessment) (as at 11 Oct 2026).
Using only the higher, most recent year for a self-employed borrower.
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