1. Seasonal income is earned at various times during the year. Certain employment such as carpenters, farm workers, and others cannot work during the winter, so the income is seasonal.
   
2. The YTD + previous year calculation you just learned is also applied to seasonal workers.
   
3. In addition to averaging earned wages from seasonal employment, Unemployment Insurance income may be used to qualify when the borrower has a history of receipt in conjunction with seasonal work
   
4. Verify that the borrower has worked in the same job (or the same line of seasonal work) for the past two years.
   
5. Confirm with the borrower’s employer that there is a reasonable expectation that the borrower will be rehired for the next season.
   
6. For seasonal unemployment compensation, verify that it is appropriately documented, clearly associated with seasonal layoffs, expected to recur, and reported on the borrower’s signed federal income tax returns. Otherwise, unemployment compensation cannot be used to qualify the borrower.
   

Seasonal Calculation

1. Base salary:
   
1. Execute the YTD + previous tax year average formula using the borrower’s employment wages .
   
2. Add the most recent two years unemployment earnings
   
3. Then divide the unemployment earnings by 24 for a two year average.
   

1. Year 1 unemployment: $6,897
   
2. Year 2 unemployment: $5,726
   
3. Year 1 base income from wages: $23,456
   
4. Year 2 base income from wages: $26,595

1. 6,897 + 5,726 = $12,623
   
2. $12,623 /24 = $525.96 / month
   
3. 23,456 + 26,595 = $50,051
   
4. $50,051 / 24 = 2,085.46 / month
   
5. $525.96 + 2,085.46 = $2,611.42 total monthly income