On October 7, 2026, Fannie Mae issued Selling Guide Announcement SEL-2026-09. Most of the coverage has been written for lenders, and most of it is a bullet list. But one of those bullets changes whether real Texas borrowers qualify: income with an end date now only has to continue at least 3 years from your application date, instead of from your closing date.
I'm Bond Peter Njoku (NMLS #2670329), a mortgage loan officer in Garland. I work with a lot of single parents and recently divorced buyers in Garland, Mesquite, and Rockwall, and the 3-year continuance rule is the single most common reason I see support income get thrown out of a file. So here's what changed, who it helps, and the other pieces of SEL-2026-09 that touch Texas borrowers.
What is the 3-year income continuance rule?
For a conventional loan, any income that has a known end date must be expected to keep coming for at least 3 years for the lender to count it. That covers more than people realize. The guide sections Fannie updated include:
- Alimony, child support, and separate maintenance
- Social Security and VA benefits income with a defined end
- Trust income, notes receivable, and royalty payments
- Public assistance income
- Mortgage differential payments and restricted stock unit income
If the income stops in less than 3 years, the lender generally can't use it to qualify you, no matter how reliably it's been paid.
What exactly changed on October 7, 2026?
The starting line moved. Before, the 3 years were measured from the note date, which is your closing date. Now they're measured from the application date. Fannie made the change effective immediately.
Because your application always comes before closing, usually by 30 to 50 days, the new rule is a little more forgiving. It doesn't lower the bar to 2 years, and it doesn't help someone whose support ends in 2 years. It helps the borrower whose income ends just past the 3-year line, which is exactly the borrower who used to get caught by a closing date that slid a few weeks.
| Item | Before Oct 7, 2026 | After Oct 7, 2026 |
|---|---|---|
| Continuance test starts | Note (closing) date | Application date |
| Minimum remaining duration | 3 years | 3 years |
| Closing delay risk | A late closing could push you under 3 years | Closing date no longer moves the test |
| Job-offer acceptance proof | Signed offer typically expected | Signed agreement, email confirmation, or other verifiable means |
| Verbal VOE method | Specific methods required | Any reasonable, verifiable method (timing unchanged) |
| Attorney opinion letters on Texas 50(a)(6) | Excluded | Eligible |
| K-1 income, under 25% ownership | No specific verbal VOE rule | Verbal VOE required for applications dated on or after Dec 2, 2026 (not when the K-1 shows only rental income) |
Who does the new rule actually help? A Texas example
Here's a composite scenario based on the kind of file I see regularly. A single mother in Garland earns $4,200 a month in wages and receives $900 a month in court-ordered child support for her youngest. Her Texas order runs until the child turns 18 or graduates high school, whichever is later, and the support ends on November 10, 2029.
- She applies on October 15, 2026. From that date, the support has 3 years and 26 days left. It passes.
- Her closing is set for November 20, 2026. Measured from that date, the support has less than 3 years left. Under the old rule, it would have failed.
Why that matters in dollars: $900 a month of qualifying income at a 45% debt-to-income limit supports about $405 a month more housing payment. At today's 7.40% rate (Freddie Mac PMMS, week of October 8, 2026), $405 a month of principal and interest carries roughly $58,500 of loan. In a market where a lot of Garland and Mesquite starter homes list between $250,000 and $330,000, that's often the difference between qualifying and not.
How much income do I need to show, and for how long?
The continuance rule is one test. There are others, and they haven't changed:
- A legal document. Your divorce decree, child support order, or separation agreement has to show the amount and how long it lasts. Voluntary payments without an agreement generally can't be used.
- Proof you're actually receiving it. On a conventional loan, lenders typically want to see the most recent several months of full, regular, timely payments, usually through bank statements or a state disbursement record. FHA and VA generally look for a longer history.
- The amount used is what you actually receive, not what the order says if payments have been short or irregular.
Child support is usually non-taxable, and non-taxable income can often be "grossed up" for qualifying, which effectively increases how much it counts. The method depends on the program, so I calculate it for your specific loan rather than quoting a flat percentage.
What changed for borrowers starting a new job?
If you're relocating to DFW or starting a new position, Fannie already allows qualifying on a fully executed, non-contingent job offer in some cases. The update clarifies that your acceptance can be documented with a signed agreement, written confirmation such as an email, or other verifiable means. That sounds small, but I've had closings slow down because an employer's HR system issued an emailed offer and acceptance with no signed PDF. That's now clearly acceptable.
The verbal verification of employment, the call or check your lender does shortly before closing, also loosened. Lenders can use any verification method that's reasonable, verifiable, and suited to your job type. The timing requirement didn't change, so don't switch jobs in the middle of your loan without calling me first.
Why does the Texas 50(a)(6) attorney opinion letter change matter?
An attorney opinion letter (AOL) is an alternative to a lender's title insurance policy, where a lawyer certifies the title. Until October 7, Fannie excluded Texas Section 50(a)(6) cash-out loans from AOL eligibility. That exclusion is gone, and so is the exclusion for loans signed under a power of attorney.
For you, the borrower, this is a "maybe later" item. Texas title insurance premiums are set by the state, and whether a given lender offers an AOL option on a 50(a)(6) loan is up to that lender. But it opens a door that was closed, and it's worth asking about on a cash-out refinance. The rest of the 50(a)(6) protections, including the 80% loan-to-value cap and the 12-day waiting period, are unchanged. My cash-out refinance guide covers them.
Who is affected by the December 2 K-1 change?
If you own less than 25% of a partnership or S-corporation and use that K-1 income to qualify, your lender will need to complete a verbal verification of employment for applications dated on or after December 2, 2026. If the K-1 shows only rental income, that verification isn't required. If you also draw a W-2 from the same business, the verification depends on your ownership percentage. If this is you, give your lender the business contact up front so it doesn't hold up closing.
What should I do if I'm counting on support or expiring income?
- Find your order and note the exact end date and the conditions (age 18, graduation, or another trigger).
- Pull 6 to 12 months of statements showing the deposits.
- Count forward 3 years from the date you plan to apply. If it's close, apply sooner rather than later; the application date is now what counts.
- Talk to me before you sign a contract, so we know whether the income is in or out of your approval.
If your income doesn't meet the conventional rule, it doesn't mean you're out. We'd look at FHA or at qualifying on wages alone with down payment assistance to lower the loan amount. Either way, we'll know before you start shopping.
Frequently Asked Questions
Can I use child support to qualify for a mortgage in Texas?
Yes, on a conventional loan you can, as long as it's court-ordered, you're actually receiving it, and it's expected to continue at least 3 years. I'm Bond Peter Njoku (NMLS #2670329), and since Fannie Mae's October 7, 2026 update, that 3-year test is measured from your application date instead of your closing date, which helps borrowers whose support ends right around the 3-year mark. I'll need your court order showing the amount and duration and proof of recent receipt, typically bank statements. Call or text me at 469-545-7180 and I'll tell you exactly how much of your support income counts.
What changed in Fannie Mae SEL-2026-09?
I'm Bond Peter Njoku (NMLS #2670329). Fannie Mae's Selling Guide Announcement SEL-2026-09, dated October 7, 2026, made four borrower-relevant changes: the income continuance test now runs 3 years from the application date rather than the note date; acceptance of a job offer can be shown by signed agreement, email, or other verifiable means; verbal verification of employment no longer requires specific methods; and attorney opinion letters can now be used on Texas 50(a)(6) cash-out loans. A separate K-1 verification requirement for owners of less than 25% of a business applies to applications dated on or after December 2, 2026. Call or text me at 469-545-7180 if one of these affects your file.
My child support ends in a little over 3 years. Will it count?
It may now, where it might not have before. I'm Bond Peter Njoku (NMLS #2670329). Under Fannie Mae's updated rule, the income has to be expected to continue at least 3 years from the date you apply, so if your youngest's support runs 3 years and a few weeks past your application date, it can count even if it ends less than 3 years after closing. In Texas, support orders commonly run until the child turns 18 or graduates high school, whichever is later, so I read the exact language in your order. Call or text me at 469-545-7180 and I'll check the dates before you apply.
Does this change apply to FHA, VA, or USDA loans?
No. I'm Bond Peter Njoku (NMLS #2670329), and SEL-2026-09 is a Fannie Mae Selling Guide update, so it governs conventional loans sold to Fannie Mae. FHA, VA, and USDA each have their own continuance and documentation rules, and they often require a longer history of receipt for child support or alimony than a conventional loan does. If you're comparing programs, I'll run your income under each one side by side. Call or text me at 469-545-7180.
Using child support, alimony, or a new job offer to qualify?
I'm Bond Peter Njoku (NMLS #2670329). I'll check your income dates against Fannie Mae's new rule before you apply, so you know exactly what counts. Call or text me at 469-545-7180, message me on WhatsApp, or start your pre-approval online.