According to HUD’s FHA 4000.1 Handbook 2016 FHA Employment Gap Guidelines were recently released for you to review. Under these guidelines, FHA requires that borrowers have two years of employment history and two years of residential history to obtain an FHA Loan. Now just because FHA requires two year employment history, this doesn’t mean that you need to be at the same job for the past two years, they just simply want to see where you’ve worked and are working. Even if you have some gaps in your two year history, they will be permitted by 2016 FHA Employment Gap Guidelines. There are some very conservative mortgage lenders who have their own lender overlays and they will require you to be at the same job for the two years and you will not be permitted to have employment gaps or you will find yourself getting a rejection. Lender Overlays are additional requirements in addition to the minimal requirements for a loan program that you must satisfy in order to get a loan by said lender. If you are told you do not qualify for 2016 FHA Employment Gap Guidelines and you worked with a lender who had overlays, look no further and reach out to me today as Loan Consultants doesn’t have lender overlays and we can get approval with the minimum requirements, 888-900-1020.
2016 FHA Employment Gap Guidelines says that if you have been unemployed for 6 months or more and you get a new full-time job, you need to be at that job for 6 months in order to qualify for an FHA loan. Yes, you are going to need to show two years of employment history, but as mentioned, the employment will not have to show continuously in order to get an approval. It is preferred by a lot of lenders to be at the same job for two years continuously or at least have an employment history with gaps. However, FHA guidelines have nothing to say about changing jobs, and the ultimate decision is to that of the underwriter on your loan file. You can even change jobs a month before you close on your loan, but as long as you can provide 30 days of paycheck stubs, you are in the clear.
2016 FHA Employment Gap Guidelines handles borrowers with multiple jobs by requiring them to provide a letter of explanation or LOX to explain the change in jobs in the last two years. If the reason for changing jobs is warranted such as better opportunities or higher income, this is all fine. Even with the proper letter of explanation, mortgage underwriters will still question your history as it is their job to ensure you are stable with your income and will be able to afford the loan. There is no set rule on having multiple jobs in your previous two years of employment and there is no set rules to enfore, it just squarely lays on the mortgage underwriter to approve you or not. If you want to take the guess work out of your next home loan, visit www.loanconsultants.com and don’t worry about lender overlays when getting your approval. I can help you get in the right loan, all it takes is one call to 888-900-1020 or email to firstname.lastname@example.org.