Does a cash flow analysis include a borrower's share of business income?

The cash flow analysis can only consider the borrower’s share of the business income or loss, taking into consideration adjustments to business income provided below. Earnings may not be used unless the borrower owns 100% of the business.

How does a cash flow analysis work?

the business must have adequate liquidity to support the borrower’s withdrawals of cash without having severe negative effects. The cash flow analysis can only consider the borrower’s share of the business income or loss, taking into consideration adjustments to business income provided below.

How does Fannie Mae determine if a business needs a loan?

the ability of the business to continue generating and distributing sufficient income to enable the borrower to make the payments on the requested loan. Fannie Mae generally requires lenders to obtain a two-year history of the borrower’s prior earnings as a means of demonstrating the likelihood that the income will continue to be received.