Unemployment Compensation can be counted as Income when qualifying for a USDA Mortgage

Some employment, like outside construction work, is seasonal and therefore there is always a particular time of year when there are seasonal layoffs. When qualifying for a USDA Mortgage. this type of income can be counted as an annual income to help you qualify.


The key to whether this is counted or not depends on the overall stability of the employment and whether the unemployment is a natural part of the job or not. The seasonal layoff should also be believable and reasonable. If half of the annual income is unemployment compensation, it will not look like short term seasonal unemployment. The best chance of getting approved with seasonal unemployment would be for a job that depends on the weather. It is completely reasonable for someone who works outside to be seasonally laid off during December and January, not so much if they are laid off in June and July.

Unemployment Compensation that is Eligible

  • at least a two year track record

  • is typical with the job type

  • period before unemployment and after unemployment is with same employer

Unemployment Compensation that is Not Eligible

  • received when in between employers

  • when it is the only source of income for qualifying

  • borrower must be currently working to apply

IncomeKeith Landis