Can I Qualify For Mortgage With New Job? How Long Do I Need To Be On New Job To Qualify?

Qualifying For Mortgage With New Job

Qualifying For Mortgage With New Job

Gustan Cho Associates

Many mortgage loan applicants think that they need to be in a job for two years in order to qualify for a mortgage loan.  This is not the case.  If you were told by a mortgage lender that you do not qualify for a mortgage because you have not been in your job for two years, find another mortgage lender or contact me at  You can qualify for mortgage with new job. Mortgage lenders may have mortgage lender overlays where their particular mortgage company may have their own lender overlays with the 2 year employment requirement on the same job but that is not HUD’s guidelines nor Fannie Mae guidelines.  You can qualify for a mortgage loan with gaps in employment and qualify for mortgage with new job.  I approve and close mortgage loan applicant’s with gaps in employment and those who started a new job all the time.

Gaps In Employment In Past Two Years

One of the requirements to qualify for a mortgage loan is to have a two year employment history.  Two year employment history does not mean that you need to have been employed by the same employer for the past two years continuously.  If you have recently gotten a full time job in 2014, and you have been unemployed in 2012 and 2013 but can prove that you were employed in 2010 and 2011, your employment in 2010 and 2011 should reflect you had a two year employment history.  You could have had multiple jobs also and gaps in between as long as you have a record of a 24 month employment history.

If you were unemployed for six or less months and you just got a new job, then you can qualify for a mortgage but cannot close on your mortgage loan until you are able to show 30 days of pay stubs.  Exception to providing 30 days paycheck stubs can be waived if you have a written employment contract.  If you have been unemployed for six or more months and started a new job, then you need to have been employed for six months in your new full time job.  Exceptions and waivers for the six month waiting period is if you get a conventional loan and if you can provide an employment contract.

Recent College Graduates Qualifying For Mortgage With New Job

If you have been a full time college student or a student from an accredited technical school, the two year employment history requirement is waived in lieu of providing your mortgage lender college transcripts or technical school transcripts.  You will get approved for mortgage with new job. You can start the mortgage application and approval process the day you got the full time job, however, you need to provide 30 days of paycheck stubs before you can close on your home.

What Income Will Be Used If I Go From Part-Time To Full-Time Employment

If you are currently employed part-time and the company that you are currently working for bumps you up to full-time, your full-time income will be used as long as your company will verify your full time status and that your full time employment is likely to continue via a written verification of employment.  The W-2s will not be averaged and your full time income will be used to qualify your debt to income ratios.

What If I Go From 1099 Income Status To W-2 Income Status

If you are a 1099 wage earner, you need two years of 1099 income in order to qualify for a mortgage loan.  One year 1099 income may be doable if the mortgage loan application gets an approve/eligible per Freddie Mac Automated Underwriting System, or LP FINDINGS.  Freddie Mac does allow one year 1099 income and one year tax returns if the mortgage applicant has a strong credit and financial profile.  If you just got a new job as a W-2 wage earner from a 1099 wage earner status, you will be able to qualify for a mortgage loan based on your new W-2 monthly gross income and may apply for a mortgage loan the day you start a new job but cannot close on your mortgage loan until you have provided your mortgage lender 30 days of paycheck stubs.

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The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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