Income from Unemployment Benefits
Income from unemployment benefits and any income from an employer-initiated action (such as furlough or layoff) are typically short-term in nature and can be considered when qualifying the borrower in the following scenarios:
- The income has been consistently received for at least two years as verified by copies of the signed federal income tax returns that reflect the unemployment income is associated with seasonal employment. See B3-3.1-05, Secondary Employment Income (Second Job and Multiple Jobs) and Seasonal Income, for additional information.
- The income from unemployment benefits can be used in the calculation of financial resources that are required under Option 2 in Employment Offers and Contracts.
- The income from unemployment benefits may be used in qualifying a borrower for a high LTV refinance loan. See B5-7-03, High LTV Refinance Alternative Qualification Path.
For additional information, see B3-3.1-09, Other Sources of Income.