Earned Income
You are considered this type of employee when you receive a fixed amount of income each year, regardless of hours worked.
What is a salaried employee.
Non-taxable income can be grossed up by this percentage.
What is 25%.
These 2 basic documents are used as proof of income for most hourly & salary employees.
What are paystubs and W2s.
The number of months we must include in the employment history to show stability.
What is 24 months.
BAH, SSDI, VAD, & Child Support are all examples of this type of income.
What is non-taxable income.
This type of income is considered stable as long as the ETS date is at least 12 months past the closing date.
What is active duty income.
Typically received after serving at least 20 years in the military.
What is military retirement.
This document can be requested by UW and is provided by the active duty member's commanding officer to verify dates of service, pay rate, re-enlistment eligibility and more.
What is a Statement of Service.
If it can be tied to the borrowers current position, time spent here can be included in the 24 month employment history.
What is time in school.
This type of income requires the borrower to have completed 2 full seasons and be on the job at the time of closing in order to use it to qualify.
What is seasonal income.
The amount of history we require in order to use part-time income to qualify.
What is 2 years.
This type of fixed income is provided before retirement age due to a qualifying condition and typically converts to standard retirement benefits once the recipient reaches full retirement age.
What is Social Security Disability Income (SSDI).
This document is often used to show proof of income before a borrower has received their first paycheck at a new employer.
What is a job offer letter.
When a borrower is employed through a temp agency or on a contract basis, underwriters must verify that they have this minimum length of employment history to consider the income stable.
What is a 2-year history.
This type of income is daily allowances paid to employees to cover costs incurred while on a business trip and cannot be used as qualifying income.
What is Per Diem.
This is the only type of income that is received by someone actively serving in the National Guard/Reserves.
What is base pay (or drill pay).
This type of income is received by a surviving spouse of a veteran who died as a result of a service connected event/disability.
What is Dependency Indemnity Compensation.
This document can act as proof of VA disability income, in addition to providing us information about a borrower's eligibility for the VA loan.
What is a Certificate of Eligibility (COE).
For this type of employment, we require 12 months on the job and 2 years worth of tax returns and transcripts to verify that the borrower has no ownership.
What is a Family Owned Business.
When the "gross up button" is used, the amount of grossed up income is automatically backed out of this line in VALA.
What is line 35.
These are the 5 ways that truck drivers can commonly be paid.
What are paid by the load, by the mile, by the day, hourly, & salary.
Knowing if it is court ordered and how long it will continue helps determine if this type of income can be used.
What is child support.
These 2 versions of the same documentation are required for any borrowers attempting to use self-employment income to qualify for a mortgage.
What are personal and business tax returns.
This is the maximum number of days we can accept for a job gap without getting more clarification from the veteran on an AUS approved file.
This military rank will show an ETS of 888888
Officer
These two factors determine the amount of Basic Allowance for Housing (BAH) an active duty service member receives.
What are number of dependents and duty station?
To include employer-sponsored pension income from a private source, underwriters must verify that it will continue or is likely to continue for at least this length of time.
What is 3 years.
This document can show historical earnings for fixed income sources such as retirement, pension, or social security.
What is a 1099.
If a borrower has a new job that they will be starting AFTER closing on a home, guidelines state that they must begin their employment within this many days of closing.
What is 60 days.
Employees paid by 1099 (NEC - non-employee compensation) are treated like this type of employment, and their income has to meet this type of employment guidelines.
What is self-employment.