Frequently Asked Question: Can I qualify for an FHA loan if my fiance and I both just got new jobs this year?

Good information.  I didn't realize that FHA considered "College time" as meeting the employment requirement.

I am closing this month with a client that has been a teacher in the US for a year and a half but was a teacher in his home country for many years prior. 

Lewis, this was clear, concise and to the point.  Thank you.  Buyers (and their agents :-) will learn alot from you about the questions that are most frequently asked.

This is a great rule that is out there.  Some buyers just don't understand that it's 24 months in the same line of work and not necessarily 24+ months with the same employer.  For self-employment, an underwriter is usually going to require at least 12+ months on the job and a filed tax return as long as the borrower was previously W-2'd in the same field.  I have also used transcripts many times for recent graduates.

Lewis... this is good information... and Steve brings up a great point that many don't even know. That you can just be 1 year self-employed, depending on your previous employment history. But one thing that you mentioned. "It doesn't matter if you switch jobs - so long as you're in the same general line of work.

A simple question....  can't you still get someone that might have changed careers and not in the same line off work, a mortgage if less than 2 years? I am curious because you just mentioned 2 yrs in the same line of work.... aren't there exceptions of less than 2 years, depending on how strong the file is?  I know I have gotten some that were less than 2 years... again, just curious...  thanks

That interesting about filing employment as time spent in college. I've worked with several clients out of college getting financial assistance from their parents to take advantage of the tax credit. I'm going to have to look into this some more!

Lewis,

I did not know that about having a new job but in same line of work, thanks.

Thanks for the informative post!  FHA loans are becoming quite big in my area and there are so many 'quirks' to learn - I learned about the same-line of work as well as the school treatment both from your post.  Great job!

More reasons to have a mortgage expert on my side and deal with "just" the real estate side, good info.

Question: If they move into the same line of work, but there was a time laspse between the old job and the new one?

Lewis, we have a customer in this situation now. Another good reason to pre-qualify.

Good to know thank you!

We typically ask for the college transcript for students.

Lewis

As always, I enjoy your insightful commentary.

Brief, but great post.

Lewis,

Lot of recent college grads probably don't know that graduation can count as "employment" for mortgage purposes. Now they do.

The 2 year work history doesn't need to be consecutive either.  The guideline is a 2 year work history needs to be documented.  This allows for gaps of employment and change of industry.  Obviously, your file needs to be strong and will most likely require LOE's and other documentation.  My rule of thumb is to present a picture that shows the borrowers stability and credit worthiness to qualify for the loan. 

Good information.  I hope this reaches consumers as well. 

I didn't know that the switch to commission based income could be a problem - thank you for sharing!