By Nathan Young, founder and president of North Star Mortgage Network, Inc., an independent mortgage brokerage in Jacksonville, Florida. Nathan Young has originated Florida mortgages since April 18, 2000 and is a 2025 NAMB Mortgage Broker of the Year and a 2026 NAMB Influencer of the Year. NMLS #325206 | Company NMLS #356789.

What Is Projected Income in a Mortgage?

Projected income refers to income from a job that starts after your mortgage closes—such as a new position or a future salary increase. While not every lender allows it, Fannie Mae and Freddie Mac do accept projected income under specific guidelines. At North Star Mortgage Network, we help qualified borrowers use this option when it fits their unique situation.

This strategy can be especially useful for professionals starting a new job, relocating, or advancing in their current company.

Who Can Use Projected Income to Qualify?

To use projected income, you must meet certain eligibility rules set by Fannie Mae and Freddie Mac:

• The income must come from new primary employment or a future salary increase with your current employer.
• Your employer must not be a family member or involved in the real estate transaction.
• The income must be fixed and salaried (hourly or fluctuating income is not allowed).
• The job must begin within 90 days after closing.
• A fully executed employment offer letter or contract is required, stating:
  • Employer and employee names
  • Start date
  • Position and salary
  • Confirmation that the job offer is non-contingent (or that any contingencies have been cleared in writing)

What Types of Loans and Properties Are Eligible?

Projected income can be used for:

• Purchase transactions
• Rate-and-term refinances
• Cash-out refinances (in some cases)

Eligible properties include:

• 1-4 unit primary residences
• Second homes
• Investment properties (depending on the loan product)

Required Documentation for Projected Income

Lenders must collect and verify documentation before closing, including:

• An employment offer or contract signed by both the employer and borrower
• A 10-day pre-closing verification confirming that the terms haven’t changed
• Proof of financial reserves to cover either:
  • 6 months of full PITIA (Principal, Interest, Taxes, Insurance, Association dues)
  • Or all monthly debts (including PITIA) between closing and job start date, plus one extra month

You’ll also need a pay stub after closing to confirm income matches what was used to qualify.

Why Work with North Star Mortgage Network?

Navigating income guidelines can feel overwhelming. That’s where we come in. At North Star Mortgage Network, we specialize in understanding and applying detailed loan policies—including projected income—to help you qualify with confidence.

Whether you’re relocating, switching careers, or earning more soon, we’ll structure your mortgage around your projected income—ensuring full compliance and smooth approval.

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