Have Selling Questions? Ask Poli

AskPoli

Fannie Mae customers! Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool.

Launch Ask Poli for Sellers  

Guide Resources

Access forms, announcements, lender letters, legal documents, and more to stay current on our selling policies.

View Resources  

B3-3.1-05, Secondary Employment Income (Second Job and Multiple Jobs) and Seasonal Income (12/15/2021)

Introduction

This topic contains information on income from secondary and seasonal employment, including:

 

Documentation Requirements

The income sources discussed in this topic must be documented by obtaining the following:

  • a completed Request for Verification of Employment (Form 1005); or

  • the borrower’s recent paystub and IRS W-2 forms covering the most recent two-year period. (Signed federal income tax returns may also be required to verify unemployment income related to seasonal employment.)

A verbal VOE is also required from each employer. See B3-3.1-07, Verbal Verification of Employment, for specific requirements.

As these income types may be hourly or seasonal, refer to B3-3.1-01, General Income Information, for additional information on calculating variable income. Also see B3-3.1-02, Standards for Employment Documentation, for additional information about verifying employment income.

 

Verification of Secondary Employment Income

Secondary employment income is income that is derived from a second job or multiple jobs the borrower may have. The lender must verify the following.

Verification of Secondary Employment Income
  Verification of a minimum history of two years secondary employment income is recommended. However, income that has been received for a shorter period of time (but, no less than 12 months) may be considered as acceptable income, as long as there are positive factors to reasonably offset the shorter income history.
  A borrower may have a history that includes different employers, which is acceptable as long as income has been consistently received. In no instance may the borrower have any gap in employment greater than one month in the most recent 12-month period, unless the secondary employment is considered seasonal income (subject to the requirements below).

 

Note: When the secondary income is self-employed income (the borrower has a 25% or greater ownership interest in the business), self-employed documentation and eligibility requirements apply. See Borrower B3-3.2-01, Underwriting Factors and Documentation for a Self-Employed Borrower for requirements.

 

Verification of Seasonal Income

The lender must verify the following for seasonal income.

Verification of Seasonal Income
  Verify the borrower has at least a two-year history of seasonal employment and income.
  For seasonal unemployment compensation, verify that it is appropriately documented, clearly associated with seasonal layoffs, expected to recur, and reported on the borrower’s signed federal income tax returns. See B3-3.1-09, Other Sources of Income, for more information on unemployment benefits.

 

Recent Related Announcements

The table below provides references to recently issued Announcements that are related to this topic.

Announcements Issue Date
Announcement SEL-2021-11 December 15, 2021
Announcement SEL-2021-01 February 03, 2021
Announcement SEL-2019-07 August 07, 2019

 

Have You Tried Ask Poli?

Poli knows. Just ask.

Ask Poli features exclusive Q&As and
more—plus official Selling & Servicing
Guide
content.

Try Ask Poli

Related Articles


AskPoli

Customers Recommend Ask Poli

If you have additional questions, Fannie Mae customers can visit Ask Poli to get information from other Fannie Mae published sources.

Guide Resources

For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more.

Visit Selling and Servicing Guide Communications and Forms

X
Having Issues with Seeing this Page Correctly?

Use Firefox or Chrome   How to do a hard refresh in Internet Explorer
We recommend that you use the latest version of FireFox or Chrome.

Download Firefox
Download Chrome
  A hard refresh will clear the browsers cache for a specific page and force the most recent version of a page.
    Hold the Ctrl key and press the F5 key.
     

Email Us
If you still have Technical Support questions, feel free to emailAsk_Poli@fanniemae.com.