Employment Documentation Provided by the Borrower
The following table provides requirements for documentation provided by the borrower.
| ✓ | Requirements — Paystubs and W–2s |
|---|---|
| The paystub must be dated no earlier than 30 days prior to the initial loan application date and it must include all year-to-date earnings. Additionally, the paystub must include sufficient information to appropriately calculate income; otherwise, additional documentation must be obtained.
Paystubs must comply with B1-1-03, Allowable Age of Credit Documents and Federal Income Tax Returns. |
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| IRS W-2 forms must cover the most recent one- or two-year period, based on the documentation requirements for the particular income type. The W-2 forms must clearly identify the borrower as the employee.
”Most recent” W-2 is defined as the W-2 for the calendar year prior to the current calendar year. Alternative documentation, such as an IRS Wage and Income (W-2) Transcript, a written Request for Verification of Employment (Form 1005 or Form 1005(S)) (see below) or the final year-to-date paystub, may be used as long as adequate information is provided. |
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| Documents must be computer-generated or typed by the borrower’s employer(s), although paystubs that the borrower downloads from the Internet are also acceptable. Documents must clearly identify the employer’s name and source of information. | |
| The documents must clearly identify the borrower as the employee. | |
| The information must be complete and legible. | |
| The original source of the information must be a third party, such as the borrower's human resources department, personnel office, payroll department, company's payroll vendor, or supervisor. |
For additional information, see B3-3.1-02, Standards for Employment Documentation.