Does unemployment count as income for mortgage? Asking about my California EDD situation

Makes sense that it's the lender's call and not EDD's. I've been so focused on the EDD side that I hadn't thought of it that way. Did the agent give you any sense of timing on when your pending week would clear?

The agent said to watch Claim History in UI Online and that a decision would come by mail. Nothing more specific than that, which was frustrating but at least I knew where things stood.

Useful to know there's a way to actually reach EDD. I've been redialing that 1-800-300-5616 number for three days straight and getting the high-volume message every single time.

The 26-week cap is exactly what I was worried about mentioning. We're about four months into the claim already so there's not a huge runway left. Do you think being upfront about how many weeks remain is better than waiting for them to ask?

Absolutely be upfront. Lenders pull everything during underwriting anyway and it looks far worse if they find out you held something back. Show them the DE 429Z, tell them where you are in the benefit year, and let them work with the actual numbers.

Lenders also sometimes ask for three months of bank statements which would show the EDD deposits coming in. So even if you don't volunteer it they'll see it.

How long did your job search take after that? Just trying to mentally prepare for different scenarios here.

Took about four months. Honestly the time wasn't terrible because I was still collecting and kept certifying every two weeks the whole time. When I found work we just reopened the purchase process.

Different loan types really do matter here. Worth asking specifically about every product they offer, not just the one they originally quoted you.

Yes still certifying every two weeks through UI Online. Definitely not stopping that.

Good. And keep up your work search activities too. EDD requires you to be able to work, available to work and looking for work every week you certify.

Also worth noting - if you end up starting a new job before closing you'd need to report those wages when certifying. Part-time work gets handled through EDD's earnings formula, full-time ends your eligibility for that week.

The job offer letter angle is interesting. I've had a few second-round interviews lately so maybe timing works out. How firm does the offer need to be - like does it have to have a start date?

My lender wanted a signed offer letter with a start date and salary, and the job had to start within 60 days of closing. Your lender's requirements might differ but that's what I dealt with.

Three-year continuity requirement is pretty standard for a lot of loan programs. Variable or temporary income sources like unemployment, bonuses, freelance pay usually get scrutinized that way.

Not exactly how it works. Getting a 1099G means it's taxable income for federal purposes, but whether a lender counts it for mortgage qualification is a separate question based on their underwriting guidelines. Those are two different things.

Oh okay that actually makes sense. I always assumed taxable meant it had to count everywhere.

Yeah the 1099G thing confused me too when I was on unemployment. EDD makes it available in UI Online by January 31 each year under the Payments section. Useful for taxes but doesn't automatically mean a lender counts it.

Good to know about the 8am timing. I may need to call EDD anyway to ask about documentation they can provide.

UI Online also has a live chat through the Help button on weekdays from 9am to 2pm if you don't want to do the phone. Sometimes that's faster for simple questions.

Even the 8am thing doesn't always work. Some mornings the line fills up instantly. The live chat is genuinely underrated for stuff that doesn't need a full phone call.

That's actually a smart way to think about it. The EDD earnings formula would still let me collect partial benefits if contract work came in under my weekly amount right?

Right, the first $25 or 25% of your gross weekly earnings whichever is more doesn't count, and the rest comes off your weekly benefit. So if your benefit is $390 and you earned $200 in a week you'd still get a partial payment.

Spot on. And full-time work would end eligibility for that week entirely. Worth tracking what you earn by the week it was earned, not when you get paid, since that's how EDD wants it reported.

Partner is also currently job searching unfortunately - both of us got caught in the same wave of tech layoffs earlier this year.

Oof, that's rough. In that case a brief pause on the purchase while one or both of you land something might honestly be the least stressful path.

Agreed. As someone who paused a purchase during unemployment - it's annoying but it's not the end of the world. The claim stays open for 52 weeks and you can keep certifying and job searching the whole time.

Got that notice and registered right away actually. Had to post a resume on caljobs.ca.gov. That part I'm on top of.

Good. Some people miss it and then wonder why payments stop. Nice to hear you caught it.

The notice is called the DE 8405 and it spells out the deadline. If anyone reading this missed it, contact EDD as soon as possible.

The maximum benefit amount on my DE 429Z is $10,140 - so 26 times $390. I hadn't thought of framing it that way to the lender. Worth trying.

Exactly. It shows the total available, which some lenders treat like an asset more than income. Depends entirely on the lender but it's a conversation worth having.

This is a good framing. Some underwriters have more flexibility than the initial loan officer suggests. Escalating to an underwriter question isn't weird at all in a situation like this.

Actively talking to a few recruiters yeah. Had a good second round last week so fingers crossed. I keep telling myself the job search and the mortgage thing will solve each other if the timing works out.

That's the dream outcome right there. Keep certifying, keep searching, and hopefully the offer letter comes through in time for the lender.

Thanks for clarifying that - I was the one who asked that question and I did have them mixed up.

Makes sense to assume they're connected. The tax form just documents what EDD paid you, it doesn't tell a lender anything about continuity or stability which is what they actually care about.

That reframing actually helps. EDD's rules are what they are and I'm following them. The lender is the unknown. I'll go in this week and ask the loan officer directly about their guidelines for unemployment income.

Ask specifically about their temporary income policy and whether a pending job offer letter changes anything. Those two questions should get you pretty far.

Also ask if there's a different loan product they offer that handles this differently. Lenders have more options than they initially show you sometimes.

An overpayment notice on top of a mortgage process sounds absolutely horrible. Glad you got clarity on it. How long did that whole thing take to sort out on EDD's end?

The agent said EDD would mail a Notice of Determination once they finished reviewing it and to appeal within 30 days if I disagreed with the finding. The notice came about two weeks later and it turned out the overpayment was from a week I hadn't reported wages correctly. Had to repay it but no fraud finding, which was a relief.

Hadn't even thought about county-level programs. Worth looking into for sure.

CalHFA also has some programs worth looking at if you haven't already. They sometimes have more flexibility on income requirements than conventional lenders.

CalHFA was actually suggested to us too during our process. Ended up not going that route but it's legitimate and worth exploring.

Keeping a detailed spreadsheet of every application - company, date, role, contact. Not sure if EDD will ever ask for it but I figure it's better to have it.

That's the right instinct. EDD can ask about it and having records means you're covered.

Important to note EDD doesn't publish a specific number of contacts you have to make per week. The requirement is that you be available and actively looking. Your spreadsheet habit will serve you well regardless.

Mine showed $390 weekly and $10,140 maximum. I've been treating it like a formality but I'll pull it out for the lender conversation.

If anything on the DE 429Z looks wrong you have 30 days from the mailing date to appeal in writing. Most people don't realize that.

Correct - the DE 429Z appeal window is 30 days. Worth checking that the base period wages they used look right, because the highest quarter of your base period determines your weekly amount.

Both of us on unemployment is the problem though. No other job income to combine it with right now.

Yeah that changes things. In that case the lender is probably going to want at least one person to have verifiable earned income before they'll move forward.

This matches what I've heard too. Unemployment as a supplement to wages is different from unemployment as the primary income source for a loan.

It really is a lot. Trying to stay organized and keep both processes moving. The EDD piece I feel like I have under control at this point - certifying consistently, CalJOBS updated, work search documented. The lender piece is the stressor now.

Sounds like you've got the EDD side dialed in. That's actually impressive given how confusing the system can be for first-timers.

That's actually really helpful - I was about to ask EDD for some kind of custom verification letter. Good to know the DE 429Z is what it is.

Exactly. The DE 429Z plus your payment history from UI Online is probably the most you're going to get from EDD. The lender will have to work with those.

Payment history printout from UI Online alongside the DE 429Z is a solid package. Shows consistent payments coming in which at least demonstrates the claim is active.

Calling the loan officer today honestly. This thread has given me a much clearer picture of what questions to actually ask. Thank you all.

Ask specifically: does unemployment count as income under your guidelines, what documentation do you need if it does, and what does a job offer letter need to contain for future income qualification. Those three questions will tell you everything.

Phoning EDD the same day you hear from the lender about anything unexpected is also worth doing - if the lender flags something weird on your financials that touches your EDD claim you want EDD's side of the picture before you respond to the lender.