Public Assistance Income

The following table provides verification requirements for public assistance income.

	Verification of Public Assistance Income
	Document the borrower’s receipt of public assistance income with letters or exhibits from the paying agency that state the amount, frequency, and duration of the benefit payments.
	Verify that the income can be expected to continue for a minimum of three years from the date of the mortgage application.

The Housing Choice Voucher Program (more commonly known as Section 8) is also an acceptable source of qualifying income. There is no requirement for the Section 8 voucher payments to have been received for any period of time prior to the date of the mortgage application or for the payments to continue for any period of time from the date of the mortgage application.

	Verification of Section 8 Payment Vouchers
	Determine from the public agency that issues the vouchers the monthly payment amount and whether the income is nontaxable.

Income from Unemployment Benefits

Income from unemployment benefits and any income from an employer-initiated action (such as furlough or layoff) are typically short-term in nature and 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 signed federal income tax returns that reflect the unemployment income is associated with seasonal employment. See Secondary Employment Income (Second Job and Multiple Jobs) and Seasonal Income, for additional information.