Income

• For each borrower who is a salaried employee or hourly wage earner, provide the two most recent paystubs that reflect at least 30 days of year-to-date earnings for each borrower. Include reliable third-party documentation describing the amount and nature of the income for “Other Earned Income” such as: overtime, bonuses, commissions, housing allowance, or tips (e.g. employment contract or printouts documenting tip income).

• For each borrower who receives self-employed income: provide a complete, signed individual federal income tax return and, as applicable, the business tax return; AND either the most recent signed and dated quarterly or year-to-date profit/loss statement that reflects activity for the most recent three months; OR copies of bank statements for the business account for the last two months evidencing continuation of business activity.

• For each borrower who receives unemployment income, provide last two unemployment checks or deposits. If you do not have copies of your unemployment checks you can perform a claim inquiry to access your records online at https://sso.ctdol.state.ct.us/

• For each borrower who receives Social Security, disability or death benefits, pension, public assistance or adoption assistance, provide documentation showing the amount and frequency of the benefits such as: letters, exhibits, disability policy, or benefits statement from the provider and documentation showing receipt of the payment, such as two most recent bank statements.

• For each borrower who receives rental income, provide a copy of your most recent federal tax return with all schedules, including Schedule E- Supplemental Income & Loss. Rental Income for qualifying purposes will be 75% of the gross rent reduced by the monthly debt service on the property if applicable OR if rental income is not reported on Schedule E, provide a copy of the current lease agreement with either bank statements or cancelled rent checks demonstrating receipt of rent.

• For each borrower who receives alimony, child support or separation maintenance payments as qualifying income*, provide a copy of divorce decree, separation agreement, or other written legal agreement filed with a court, or court decree that states the amount of the alimony, child support, or separation maintenance payments and the period of time over which the payments will be received, AND copies of your two most recent bank statements or other third party documents showing receipt of payments.

*NOTICE: Alimony, child support, or separate maintenance income need not be revealed if you do not choose to have it considered for repaying this loan.

Note: You may also disclose any income from a household member who is not on the promissory note (non-borrower), such as a relative, spouse, domestic partner, or fiancé who occupies the property as a primary residence. If you elect to disclose and rely upon this income to qualify, the required income documentation is the same as the income documentation required for a borrower.

Posted in: Documentation Guidelines