Does FHA Require Minimum Employment History?

For a home buyer to qualify for a FHA insured mortgage loan, FHA requires a minimum of two years employment history.  The employment history does not have to be two year consistent employment history.  There can be gaps in employment but two years of overall employment history needs to be documented.  Many mortgage loan applicants believe that they do not qualify for a residential FHA insured mortgage loan because they do not have two years consistent employment history with the same company.  This is absolutely not the case.  You can have gaps in employment and still qualify for a FHA insured mortgage loan and you could have had multiple different jobs in the past two years and as long as they have been in the same field, you will qualify for a FHA loan.

Periods Of Unemployment

If you have been unemployed for six months or less and got a new full time job, you can qualify for a residential mortgage loan.  A full verification of employment from your new employer verifying your full time status and your likelihood of employment will be required and 30 days of paycheck stubs will be required before you can close on your mortgage loan.  If you have been unemployed for six months or more and got a new full time job, you can qualify for a residential mortgage after six months you have been with your new employer.  For example, say you were unemployed for two years and just got a new job and want to qualify for a mortgage loan.  You can qualify for a mortgage loan six months after you start your new job.  Many folks think that they need to be on their new job for two consecutive years in order to qualify for a mortgage but that is not the case.

College And Trade Schools

If a mortgage loan applicant has been a professional student and have no employment history, college or trade school transcripts can be used in lieu of employment history.  For example, if a law student did not ever have a job and just graduated law school and now has a full time  job as an attorney, this mortgage applicant will definitely qualify for a residential mortgage loan because they can supply their law school transcripts in lieu of two years employment history.  Same situation with a mechanic where they could have been enrolled in a two year auto mechanic technical school where they had no prior employment history.  The Auto mechanic technical school transcripts can be used in lieu the mandatory two year employment history.

Gustan Cho

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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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