B3-3.3-03, Employment Offers or Contracts (03/04/2026)

Option 1

Paystub Obtained Before Loan Delivery

Option 2

Paystub Not Obtained Prior to Delivery

This option is limited to loans that meet the following criteria:

• purchase transaction,
• principal residence,
• one-unit property,
• the borrower must not be employed by a family member or by an interested party to the transaction, and
• the borrower is qualified using only fixed-base income.

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.

The lender must obtain and review the borrower's fully executed offer or contract for future employment. The documentation must clearly identify

• the employer and the borrower,
• the terms of employment, including position, type and rate of pay, and start date.

Prior to delivering the loan, the lender must save the most recent paystub from the borrower (that includes sufficient information to support the qualifying income based on the offer or contract) in the loan file.

Additionally, a verbal VOE is required. See B3-3.1-04, Verbal Verification of EmploymentB3-3.1-04, Verbal Verification of Employment, for specific requirements. Alternatively, when the borrower's start date is on or after the note date, the lender may obtain verification directly from the employer confirming all terms in the offer letter remain the same.

The lender must obtain and review the borrower's fully executed and non-contingent offer or contact for future employment. The documentation must clearly identify

• the employer and the borrower, and
• the terms of employment, including position, type and rate of pay, and start date.

If conditions of employment exist, the lender must confirm prior to closing that all conditions of employment are satisfied (either by verbal verification or written documentation). The lender must note this confirmation in the loan file.

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.

Additionally, a verbal VOE is required. See B3-3.1-04, Verbal Verification of EmploymentB3-3.1-04, Verbal Verification of Employment, for specific requirements. Alternatively, when the borrower's start date is on or after the note date, the lender may obtain verification directly from the employer confirming the terms in the offer letter remain the same.

In addition to the amount of reserves required by DU or for the transaction, the lender must document one of the following:

• six months' PITIA for the subject property; or
• financial resources sufficient to cover the monthly liabilities included in the DTI ratio, including the PITIA for the subject property, for the number of months between the note date and the employment start date, plus one. For calculation purposes, the lender may consider any portion of a month as a full month. Financial resources may include:
  • financial reserves, and
  • current income, which refers to the net income that is currently being received by the borrower (or co-borrower), 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 or is not eligible to be used for qualifying purposes, it can be documented by the lender using income documentation, such as the most recent paystub. A verification of employment is not required.