FHA Loans After Unemployment And Gaps In Employment

This BLOG On FHA Loans After Unemployment And Gaps In Employment Was UPDATED On June 20, 2017

Home buyers can now qualify for FHA Loans After Unemployment and gaps in employment.

  • Many home buyers just assume that FHA Borrowers cannot qualify for FHA Loans After Unemployment unless they have been on their current jobs for two years.
  • This is not the case under HUD 4000.1 FHA Guidelines.
  • FHA Borrowers can qualify for FHA Loans After Unemployment as well as gaps in employment without being at their current jobs for two straight years.
  • FHA Guidelines On Gaps Of Employment are specific and does not require two continuous years of employment.
  • FHA just requires two year employment history which gaps in employment in the past two years is allowed.
  • I get asked this question several times a week from home buyers who need to qualify for a mortgage. 
  • Mortgage lenders require two years tax returns and two years employment history. 
  • How about on cases where a mortgage loan borrower has been laid off during the past two years.

Qualifying For Mortgage After Unemployment Of More Than 6 Months

If a mortgage loan borrower has been laid off less than six months, the borrower will qualify without any problems.

  • The borrower can be laid off for no more than six months and just started a job with another company, the borrower will have no problem in qualifying for a mortgage loan. 
  • The borrower can even be in a different line of work. 
  • All that is needed is 30 days of paycheck stubs from their new employer.
  • For example, if the mortgage loan borrower was a school teacher for over 20 years and got laid off six months or less and just got a job as an automobile mechanic, the mortgage loan borrower can still qualify for a mortgage loan and the new pay as the auto mechanic will be used as the new income.
  • An offer letter of employment is normally required.
  • They can still qualify for a mortgage even though there was a gap in employment history in the past two years.

Qualifying For Mortgage After Unemployment: Extended Unemployment

  • For cases where the mortgage loan borrower has been unemployed for six or more months, mortgage lenders want to see a six month continuous job history before qualifying them for a mortgage home loan. 
  • So in the event if the school teacher has been unemployed for one year and just got a job as an automobile mechanic recently, he or she must work on their current job for a period of six months before they would qualify for a mortgage loan.

If you have any questions and have been previously unemployed and just started a new job and want to see if you qualify for a mortgage, please contact us at 800-900-8569 or email us at gcho@gustancho.com.  Our team of mortgage professionals can go over options and work together in getting mortgage after unemployment. We also have access to NON-QM Loans and alternative financing solutions such as bank statement mortgage loans.

Gustan Cho NMLS ID 873293

Related> Qualifying for mortgage with employment gaps

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.

Comments are closed.