Fixed pension
Use the benefit statement and receipt evidence; identify any survivor or expiration terms relevant to continuance.
Direct answer
Retirement-related income can qualify when receipt, amount and required continuance are documented. The evidence differs for Social Security, a fixed pension, an annuity and withdrawals from an asset account.
Retirement-income documentation tree
- Classify every source as Social Security, pension, annuity or asset distribution.
- Collect award letters, benefit statements, account statements and deposit history as applicable.
- Confirm whether payments are fixed, variable, taxable, nontaxable or subject to expiration.
- For asset distributions, verify the remaining balance supports required continuance after closing.
- Reconcile all amounts to bank deposits and the application.
Income-source checklist
| Source | Core evidence | Key test |
|---|---|---|
| Social Security | Award or benefit verification | Current receipt and any expiration |
| Pension/annuity | Statement and deposit history | Payment terms and continuance |
| IRA/401(k) distribution | Statements and withdrawal record | Sufficient remaining assets |
Match each retirement source to its current guide section
Fannie Mae now separates annuity, pension or retirement income in B3-3.4-03 from Social Security in B3-3.4-15. A fixed pension, Social Security benefit, annuity payment and recurring retirement-account distribution should not be documented as though they are the same source.
Verify current receipt, gross amount, taxation when relevant, and any defined expiration. When distributions depend on an asset account, document that the remaining balance can support the required continuance after funds to close are removed.
- Label every deposit by source.
- Collect award letters, statements and deposit evidence.
- Separate fixed benefits from discretionary withdrawals.
- Test remaining assets and continuance before using distributions.
Florida decision cases
IRA distribution
Verify the withdrawal history and remaining assets after closing.
Social Security
Use the current benefit evidence and document tax treatment only when it affects the qualifying calculation.
Use: identify the closest case, collect the named evidence, and have the lender apply the current agency section to the complete borrower and property file. These cases illustrate decision paths, not approval outcomes.
Joe’s Advice
“Label each retirement deposit before sending statements. Clear source-by-source documentation prevents a fixed pension from being confused with a discretionary withdrawal.”
— Joseph “Joe” Pistone, NMLS# 2087918
Current primary sources
- Fannie Mae B3-3.4-03 — Annuity, Pension, or Retirement Income
- Fannie Mae B3-3.4-15 — Social Security Income
- Social Security — Benefit Verification Letter
Current agency guidance and the complete loan file control. Lender overlays and automated-underwriting findings may add requirements.
Frequently asked questions
Is a pension documented the same way as an IRA withdrawal?
No. A fixed pension and an asset-based distribution have different evidence and continuance considerations.
Can Social Security income be used on a conventional loan?
It may be used when current receipt and applicable continuance requirements are documented under the selected agency guidance.
Must retirement distributions continue after closing?
When the income has a defined expiration or depends on depleting assets, the lender must document the applicable required continuance.
Can nontaxable retirement income be adjusted?
Verified nontaxable income may receive the treatment allowed by the current agency guide; tax status must be documented.
Do funds used for closing still support future distributions?
No. The continuance analysis must account for assets removed for down payment, closing costs or other transaction needs.
Review the actual Florida file
Bring the address, contract, income and asset records, debts, property documents and questions that apply to the transaction.
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Educational information only; not legal, tax or investment advice, a rate quote, approval, commitment to lend or guarantee of closing. Eligibility, documentation, pricing, payment, cash to close and timing depend on the complete application, property and current program requirements.