Income · Fannie Mae Selling GuideSeasonal work and unemployment benefits as mortgage income

Construction, landscaping, tourism and other seasonal workers often have months without pay. Fannie Mae's Selling Guide (B3-3.3-08) accepts seasonal income with a verification of employment (Form 1005) or the latest paystub and two years of W-2s, plus a verbal verification of employment. A two-year history is required, continuance isn't checked unless there's reason to doubt it, and the qualifying income is the average of year-to-date earnings and the previous two years. Unemployment benefits (B3-3.4-17) generally can't be used to qualify for a purchase – except when they've been received consistently for at least two years and the signed tax returns show they're tied to seasonal employment. The lender then needs two years of signed personal tax returns and averages the income over two years if stable or increasing, or over the most recent year if declining. (Unemployment benefits can also be counted as financial resources in the job-offer qualifying option and in high-LTV refinances, which have their own rules.)