Employment Offers or Contracts
If the borrower is scheduled to begin employment under the terms of an employment offer or contract, the lender may deliver the loan in accordance with one of the options outlined below.
|✓||Option 1 -- Paystub Obtained Before Loan Delivery|
|The lender must obtain an executed copy of the borrower's offer or contract for future employment and anticipated income.|
|Prior to delivering the loan, the lender must obtain a paystub from the borrower that includes sufficient information to support the income used to qualify the borrower based on the offer or contract. The paystub must be retained in the mortgage loan file.|
|✓||Option 2 -- Paystub Not Obtained Before Loan Delivery|
|This option is limited to loans that meet the following criteria:
|The lender must obtain and review the borrower’s offer or contract for future employment. The employment offer or contract must
Also note that for a union member who works in an occupation that results in a series of short-term job assignments (such as a skilled construction worker, longshoreman, or stagehand), the union may provide the executed employment offer or contract for future employment.
|The borrower’s start date must be no earlier than 30 days prior to the note date or no later than 90 days after the note date.
Prior to delivery, the lender must obtain the following documentation depending on the borrower’s employment start date:
|If the borrower’s start date is...||Documentation Required|
|The note date or no more than 30 days prior to the note date||
|No more than 90 days after the note date||Employment offer or contract|
|The lender must document, in addition to the amount of reserves required by DU or for the transaction, one of the following:
Current income refers to net income that is currently being received by the borrower (or coborrower), may or may not be used for qualifying, and may or may not continue after the borrower starts employment under the offer or contract. For this purpose, the lender may use the amount of income the borrower is expected to receive between the note date and the employment start date. If the current income is not being used for qualifying purposes, it can be documented by the lender using income documentation, such as a paystub, but a verification of employment is not required.
|The lender must deliver the loan with Special Feature Code 707.|
For additional information, see B3-3.1-09, Other Sources of Income.