Fannie Mae has developed innovative, user-friendly free tools to make the mortgage lending process easier for both lenders and borrowers and reduce barriers to homeownership. In 2024, the company introduced the Income Calculator and Closing Costs Calculator to enhance efficiency, inclusivity and transparency in the mortgage origination process.
The Income Calculator simplifies the process of calculating qualifying income for borrowers with self-employment or rental income, a historically complex and error-prone task. Self-employed borrowers represent approximately 10% of the U.S. workforce, yet calculating their income accurately has posed significant challenges for lenders and disproportionately affected low-to-moderate income borrowers. The free online version of the tool, launched in 2024, offers immediate results and step-by-step guidance for using tax returns to determine qualifying monthly income. With over 100,000 evaluations submitted and 545 lenders utilizing the tool in 2024, the Income Calculator has streamlined operations, reduced repurchase risks and supported better borrower experiences.
The Closing Costs Calculator empowers homebuyers by providing accurate cost estimates using local historical data and highlighting negotiable fees. Introduced in April 2024, the tool has helped over 65,000 prospective homebuyers better understand and anticipate closing costs, with many users submitting multiple calculations to evaluate affordability and lender options. By enabling more informed decisions, the calculator supports financial stability for first-time and lower-income buyers.
These solutions help distinguish Fannie Mae as an industry leader, committed to innovation that improves the housing industry.
