Tuesday, 02 August 2011 13:21
A very little known fact, even among mortgage professionals, is that you can count unemployment income in certain circumstances for a mortgage loan. If it is customary for the job and expected to continue for the next 3 years, unemployment compensation can be counted as income and either averaged over the last 2 years or if declining, use the most recent lower year. Employees that work shut downs, seasonal employees that work at golf / ski resorts, and journeyman are all examples of types of jobs where unemployment income is paid at periods throughout the year. It is common for these employees to be laid off at certain times for weeks at a time and then brought back to work. If there is a pattern like this and it is expected to continue, you can use the unemployment compensation as income for mortgage qualifying. An experienced loan officer would see that this income could be used to help qualify a borrower for a mortgage. We closed a 90% LTV, first time buyer, primary residence condo purchase with about a 43% debt to income ratio that we needed to count the unemployment income to qualify just two weeks ago. Contact us today for your scenarios!