The number one email we get from our clients working with employed borrowers on IncomeXpert PLUS is
“My borrower has overtime (or any other variable income) why didn’t IncomeXpert PLUS add in these income types?”
The agencies state in the document requirements section for variable income to either get a VOE or “most recent pay stub and IRS W-2 covering most recent 2 years”. In 99% of the cases, getting paystubs and W-2s only will not give you enough information to determine the income as required by the guidelines.
We understand the documents section states that pay stubs and W-2s to meet the requirements to use variable income, but this is misleading because of other sections in the guidelines we follow to meet all the other requirements. For example minimum history requirements and trending analysis of 12 or more months that are required by all agencies.
What is required for submission to IncomeXpert PLUS to determine variable pay amounts
A Verification of Employment (VOE) or Verification of Income (VOI) that covers two years or; Year End paystubs for the previous two years that break down the variable income.
These documents are needed if you require IncomeXpert PLUS to determine
- Variable Base Pay
- Overtime
- Bonus
- Commissions
- Tips
- Other incomes on the paystub that are not fixed, for example shift premiums