Sources of Income and Documentation

Verification of Base Pay, Bonus, and Overtime Income

The following table provides verification requirements for base pay, bonus, and overtime income:

	Verification of Base Pay, Bonus, and Overtime Income
	A minimum history of two years of employment income is required to be stated on the application. However, income that has been received for a shorter period of time may be considered as acceptable income, as long as the borrower’s employment profile demonstrates that there are positive factors to reasonably offset the shorter income history.
	Base Pay (Salary and Hourly): Obtain the following documents: a completed Request for Verification of Employment (Form 1005 or Form 1005(S)), or the borrower’s recent paystub and IRS W-2 forms covering the most recent one-year period.
	Bonus or Overtime: Obtain the following documents: a completed Form 1005 or Form 1005(S), or the borrower’s recent paystub and IRS W-2 forms covering the most recent one-year period.
	See General Income Information, for additional information on requirements for variable income (applies to hourly paid employees with fluctuating hours and bonus and overtime).
	If the borrower has recently changed positions with their employer, determine the effect of the change on the borrower’s eligibility and opportunity to receive bonus or overtime pay in the future.
	If a borrower who has historically been employed on a part-time basis indicates that they are now working full-time, obtain written confirmation from the borrower’s employer.
	See Standards for Employment Documentation, for additional information about verifying employment income.