– A minimum history of two years of bonus employment income is recommended. However, bonus 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.
- Best case: The borrower has a 2 year history of receiving bonus income to use for qualifying.
- Acceptable: Bonus income received for more than 1 year but less than 2 years may be considered for qualification as long as there are positive compensating factors to reasonably offset the shorter income history.
- Unacceptable: Bonus income earned for less than 1 year cannot be used in qualification.
Bonus Income Documentation:
Written VOE covering the most recent 2 year period (form 1005)
A recent paystub and last 2 years of W-2’s.