Income from part time work (includes seasonal and second job):
Since part time income can be subject to changes in the hours worked and typically does not include benefits, calculate income by averaging the earnings for the past 2 years. For part time income (as a second job), borrower must have a 2-year consecutive history of receiving income and it must be likely to continue for the next 3 years. If a borrower has worked in the same capacity but has changed employers their income may be considered provided it is consistent with previous earnings, based on underwriting review. The following documentation is required
1. Verify the income with W2s for the most recent 2 years.
2. Verify the borrower has been receiving such income on an uninterrupted basis for the most recent 2 years. Seasonal part-time work is the exception. See Seasonal part time work below.
3. Verify the income has a strong likelihood of continuing for the next 3 years.
Seasonal part time work may be considered as uninterrupted. For example, a borrower who has worked for the same employer for the past 2 years, and expects to be rehired the following year, can be considered to have an uninterrupted seasonal income. Verification must be obtained from the employer indicating a likelihood of continuance for the next 3 years.
Steve Florio
Mortgage Advisor
ERA Mortgage
Southern Utah, Mesquite NV
435-640-0364 / cell
435-635-1504 / office
435-635-1662 / fax
steve.florio@mortgagefamily.com
