Fannie Mae has updated it's policy for the minimum amount of time that a borrower must be employed when qualifying for a conventional mortgage. A minimum of one pay stub will be required for all approvals. When one paystub is used to document income, the paystub should reflect at least 30 days of earnings. If the paystub does not reflect 30 days of income (for example, when the borrower has been employed only one month and the paystub reflects only 2 weeks of income), the lender should obtain additional documentation, such as a written verification of employment.
The updated Fannie Mae Selling Guide now states that: Salary or Hourly Wage Earnings (Base Income)
History of Income: The borrower must have been employed a minimum of 30 days in his or her current position to use the income for qualifying purposes.
This change is effective immediately for conventional loans. The new policy will greatly restrict the ability to approve a loan when the borrower provides verification of employment scheduled to begin after the loan closing. Any exception to this policy must be submitted to Fannie Mae by the lender for a single loan waiver.