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 of uninterrupted secondary employment income is recommended. However, income that has been received for a shorter period of time (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.|
Secondary employment must be documented by obtaining the following:
- a completed Request for Verification of Employment (Form 1005 or Form 1005(S)); 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.