CALL US AT 1-800-215-2454 TO DISCUSS YOUR NEEDS
Northeastern Realty can accelerate the process to helping you find a new home in Florida, Massachusetts, Rhode Island, and Georgia. We assist with our clients to get the right home and loan needed for your situation. Our team of real estate agents and loan officers are here for you to get you through this important stage of your life. No matter if you are still searching for a home, or if you have already found the home of your dreams, Northeastern Realty can be an asset to you during the home buying process.
Are you considering a career change or taking a break from work?
Your employment history is one of the key factors that lenders consider when determining your eligibility for a mortgage. But the impact of a gap in employment on your mortgage application can vary depending on several factors, including the length of the gap, the reason for the gap, and your overall financial situation.
So, if you have an employment gap on your record, it’s a good idea to be prepared to explain it and show proof of any alternative sources of income during that time, like unemployment benefits or freelance work.
FREDDIE MAC
A borrower re-entering the workforce with less than two years’ employment can qualify as long as stability of income is documented.
FANNIE MAE
When the borrower does not have a two-year employment history, positive factors are needed to use the income. For example, if the borrower is returning to work, the stability of the income needs to be questioned when reviewing the overall picture of the file.
Example: Has the borrower had a single job for the past 6 months, or have they jumped to several jobs in that time?
FHA
When borrowers most recent two year employment history has gaps in employment exceeding 6 months (an extended absence), both of the following must be verified:
* Document 2 year work history prior to the leave of absence, AND
* Verify the borrower has been employed in a similar line of work for 6 months minimum prior to case number assignment.– if the borrower has changed jobs since case number assignment, the borrower’s income must be stable and put them in a better position.
VA
VA is silent on this topic.