B3-3.1-05, Secondary Employment Income (Second Job and Multiple Jobs) and Seasonal Income (12/15/2021)

The income sources discussed in this topic must be documented by obtaining the following:

• a completed Request for Verification of Employment (Form 1005); or

• the borrower’s recent paystub and IRS W-2 forms covering the most recent two-year period. (Signed federal income tax returns may also be required to verify unemployment income related to seasonal employment.)

A verbal VOE is also required from each employer. See B3-3.1-07, Verbal Verification of EmploymentB3-3.1-07, Verbal Verification of Employment, for specific requirements.

As these income types may be hourly or seasonal, refer to B3-3.1-01, General Income InformationB3-3.1-01, General Income Information, for additional information on calculating variable income. Also see B3-3.1-02, Standards for Employment DocumentationB3-3.1-02, Standards for Employment Documentation, for additional information about verifying employment income.

Secondary employment income is income that is derived from a second job or multiple jobs the borrower may have. The lender must verify the following.

Note: When the secondary income is self-employed income (the borrower has a 25% or greater ownership interest in the business), self-employed documentation and eligibility requirements apply. See 

B3-3.2-01, Underwriting Factors and Documentation for a Self-Employed Borrower B3-3.2-01, Underwriting Factors and Documentation for a Self-Employed Borrower

 for requirements.

The lender must verify the following for seasonal income.