B3-3.4-17, Unemployment Benefits Income (03/04/2026)

Stable or Increasing: Calculate an average income amount using the most recent two years personal federal income tax returns.
Decreasing: Calculate an average income amount using the most recent year personal federal income tax returns.

Income from unemployment benefits 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 singed federal income tax returns that reflect unemployment income is associated with seasonal employment. See B3-3.3-08, Seasonal Income B3-3.3-08, 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 B3-3.3-03, Employment Offers or Contracts B3-3.3-03, Employment Offers or 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 B5-7-03, High LTV Refinance Alternative Qualification Path.

The table below provides requirements for unemployment benefits income.

Criteria	Requirements
Documentation	The lender must obtain two years of signed personal federal income tax returns.
Income History	A minimum two-year history is required.
Income Continuance	The lender is not required to verify continuance unless they have reason to believe the income may not continue.
Determination of Qualifying Income	Average Income: Depending on the historical trend of the income, the lender must calculate qualifying income as follows: Stable or Increasing: Calculate an average income amount using the most recent two years personal federal income tax returns. Decreasing: Calculate an average income amount using the most recent year personal federal income tax returns.