Short answer
Yes. On a Fannie Mae loan, trust distributions can count as income once the lender confirms the amount, how often you're paid, the type of income and when the trust was set up. Fixed payments generally need a trust that's been in place at least 12 months. Variable payments need a 24-month history. If the trust is being drawn down, the income usually must be expected to last at least three years.
What documents will the lender ask for?
One or more of these:
- The trust agreement.
- A statement from the trustee, if you aren't the trustee.
- The trust's federal tax returns.
- A letter from an accountant or attorney who reviewed the trust, when the others aren't available or you are the trustee.
The lender also needs proof you received at least one payment. For variable payments, it needs two years of your or the trust's tax returns.
What if the trust is new?
Fixed payments from a trust set up less than 12 months ago can still count if the payments are fixed, you didn't create the trust, and at least one payment arrives before closing.
How long does the income need to last?
It depends on what pays it. Income from something like rental property doesn't need the three-year test. A fixed payment from an account that's being used up does. If you're also using trust assets for your down payment or reserves, the lender subtracts those first before checking whether enough is left.
How does FHA treat trust income?
HUD's Handbook 4000.1 counts income regularly paid to you from a trust. The lender needs the trust agreement or a trustee statement, a bank statement or transaction history showing how often and how much you receive, and confirmation that payments will continue for at least the first three years of the loan. The amount is based on the trust's terms.
Are there related options?
Yes. See qualifying with retirement assets and a mortgage on a home in a revocable trust.
Sources
- HUD Single Family Housing Policy Handbook 4000.1, Update 18 (August 2026), Trust Income (TOTAL)
- Fannie Mae Selling Guide B3-3.4-16, Trust Income (10/07/2026)
Checked November 2, 2026. Rules and dates change, so confirm current details before you rely on them.
General information only, not tax or legal advice. Program availability, eligibility and terms vary by lender and are subject to change and to underwriting approval. Not a commitment to lend.