Click on checklist to download a comprehensive list of documentation needed for the typical loan application

  • Paystubs or LES covering most recent 30 days available
  • W2's for two most recent years
  • Personal tax returns for two most recent years

For self employed persons

  • Year to date Profit and Loss statement and balance sheet
  • Business Tax returns for two most recent years

Basic employment documentation required

Helping Military and Civilian families realize the dream of homeownership since 1990

Laura Borja- Home Loan expert- NMLS 199107

Standard guidelines require that a lender verify that the employment and income is stable and predictable*

Employment History


A 2 year history of employment in the  same line of work is required in most cases.  Any gaps in employment must be explained and documented.


Exception: If you were attending school or spent in the military, that time is included in the two year requirement.

Check out the required documentation

Qualifying Income

The requirements for calculating and determining which income can be used to qualify.

  • Primary Employment


    Current salary is used as effective income


    If the hours do not vary, income is calculated  based on the currently hourly rate.


    If hours vary, a 24 month average of income is used.

    Military Income:

    Income received from active duty, Reserve or Notional Guard service is included in qualification as long as it is likely to continue.

    Military education benefits ARE not included for qualifying.

    Auto Allowance:

    Can be used to offset a monthly car payment only if it has been received for the previous two years

  • Overtime, Bonus and Commission

    Overtime and Bonus:

    Can be considered qualifying income if it has been received for at least 1 year and is likely to continue.


    An average of the previous year and Year To Date is used to qualify


    A two year history is recommended but 12-24 months is acceptable if it is shown that it is likely to continue

  • Part Time Employment

    A history of working a part time job uninterrupted for 2 years is preferred but a shorter time period (no less than 12 months) can be acceptable there are other positive factors and the job must be likely to continue.


    An average of the income is used for qualifying.

  • Self Employed Income

    An individual is considered to be self employed if he/she has 25% or greater ownership interest in the business.


    Self employment income of less than two years will only be considered if there is at least a one year history and it can be documented that he/she was employed in the same line of work as the business for at least two years.


    A 24 month average of the income, as reflected on tax returns, is used for qualifying.

    If the income is lower for the most recent tax return, then a one year average of the lower income is used.

  • Rental Income

    Rental income from subject property

    • If primary residence, rental income only allowed if it is a 2-4 unit property
    • Requires a rental  survey to establish the market rent or
    • If property is already rented, a copy of the lease and confirmation of the transfer to the new owner is required.
    • If the property is NOT a primary residence,cash reserves will be required.


    Rental income from property being vacated

    Allowed as long as the new rental income is documented


    Rental income from other property

    A 24 month average from the net rental income shown on the tax returns is used..


    Where there is no history of rental income, 75% of the verified rent is used to offset the housing/property obligations (taxes, ins, HOA).

    Any negative rental totals will be included as a debt/liability for qualification purposes.

  • Retirement Income

    Social Security  VA Retirement and Pension Income (not disability)

    Income can be used for qualifying.

    Copy of the "award" letter is required to verify amount due along with bank statement verify the receipt of the funds


    IRA and 401K Income

    Must have at least a guarantee of continuing for 3 years from the closing date.


    If the amount fluctuates, an average of up to 2 years can be used.


    Some non taxable income can be grossed up for qualification purposes.

  • Disability Income

    You must provide documentation to verify the amount of benefits awarded and that the income is to continue for at least 3 years from the closing date.


    Social Security and Private disability benefits

    Copy of the "award" letter with the expiration date of the benefits is required


    VA disability

    A copy of the "award" letter is required.  If no expiration date is listed, then it is assumed that it will continue for at least 3 years.


    Some non taxable income can be grossed up for qualification purposes.

  • Alimony and Child Support

    Can be used as qualifying income if

    • amount due can be documented via divorce decree, legal separation agreement, court order or signed voluntary payment agreement
    • the amount is going to continue for 3 years from the closing date
    • evidence of receipt can be documented.

    Canceled checks, deposits slips or bank statements are required to document receipt of the income for the previous 6 months

*This overview is not all inclusive and does not include all guidelines, situations or sources of allowed income. Contact us or your lender for additional information that applies to your situation.

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Laura Borja  | Senior Mortgage Consultant | NMLS#199107

Cell: (619) 992-4061

27271 Las Ramblas ste 350  Mission Viejo CA 920691

This website is not authorized by the New York State Department of Financial Services to accept mortgage loan applications for properties located in New York. Intended for California Consumers Only.




Laura Borja- Home Loan expert- NMLS 199107
Laura Borja- Home Loan expert- NMLS 199107
Laura Borja- Home Loan expert- NMLS 199107