Continuity of Income

(Reduction in earnings/Furloughs)

• Reduced hours/earnings – If documentation is provided that indicates the borrower’s hours or earnings have been reduced due to current environment then the lower earnings will have to be used to qualify. Declining income may not be averaged. Stability of income must be reviewed and determined to be acceptable.
• Borrowers working in industries impacted the most by the current conditions (e.g. service, travel, etc.) obtain the most recent pay-stub. Stability of income must be reviewed and determined to be acceptable.
• Borrowers who are currently furloughed and are not receiving income at time of closing are not eligible.