B3-3.3-05, Military Income (03/04/2026)

The following table provides requirements for military income, including base pay and allowances.

Criteria	Requirements
Documentation	The lender must obtain the borrower's most recent Leave and Earnings Statement (LES) dated within 120 days of the note date. Additionally, a verbal VOE is required. See B3-3.1-04, Verbal Verification of Employment B3-3.1-04, Verbal Verification of Employment, for specific requirements.
Income History	Active Duty: There is no set minimum history requirement for inclusion as qualifying income. National Guard/Reserves: A minimum 12-month history is required.
Income Continuance	Military personnel may be entitled to different types of pay ("allowances") in addition to their base pay, including but not limited to flight or hazard pay, rations, clothing allowance, quarters' allowance, and proficiency pay. The lender must carefully examine allowances that a service member receives based on their location or the nature of their job duties. The lender may include these allowances as qualifying income provided there is no indication that the income amount will be lowered, in which case the lower amount must be used for qualifying, or discontinued altogether.
Determination of Qualifying Income	The lender may include the full amount of the borrower's monthly base pay and allowances as qualifying income.