ATR during the pandemic

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    We have a customer purchasing a house. Per the Ability to Repay (ATR) rules, has there been any guidance on how to calculate a customer income if they are currently drawing unemployment due to being furloughed because of COVID-19? Their employer will give a letter stating the borrower will be returning to work.


    I’m not aware of any guidance specific related to determining ATR during the pandemic. I think for this situation you’d rely on the projected income rules in in II-E of Appendix Q.

    I’ll send this over to Jack to see if he has any additional information.


    You may also want to look at Section II-C 3. c.. Borrowers collecting unemployment insurance typically do not qualify for a home loan. Lenders won’t allow unemployment insurance as an income source on an application, unless the borrower is a seasonal worker, such as a construction worker, contractor or someone who works in the entertainment industry.

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