Fannie Mae & Freddie Mac – Nursing School Graduate Receives Hourly Income

Question:

Our client graduated from nursing school 2 months ago and began her new position a couple of weeks later. She is paid $33 per hour and works 36 hours per week. Do I multiply the 36 hours by the hourly rate to determine her income? The paystubs confirm that she has worked at least 36 hours and sometimes more.

Answer:

I like Freddie Mac as an option for this inquiry. They have more specific guidance related to this scenario, specifically this:

Minimum Required Hours:

For borrowers with primary employment earnings that fluctuate but have a position with a minimum number of required hours, those minimum hours may be considered non-fluctuating base pay. The lender must obtain written documentation (such as an offer letter) confirming the minimum required hours, and that documentation must be supported by year-to-date (YTD) income.

Additional Hours/Overtime:

Only the minimum required hours may be considered non-fluctuating. Any additional hours are treated as fluctuating employment earnings or overtime and require at least a 12-month history to qualify as income.

Fannie Mae should support this, too. I just like the language and guidance that Freddie Mac offers.

Summary/conclusion:

For your borrower who started in January 2026, you should be able to use their nursing school transcripts to satisfy the two-year employment history requirement. For the income calculation, you may only use the base of 36 hours per week at $33.00 per hour. The additional hours they are working cannot be included in their qualifying income because both agencies require at least a 12-month history before fluctuating or overtime income can be used.

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