Gaps In Employment History: Can I Still Qualify For A Mortgage Loan?

The answer to the above question is an absolute YES.  Most mortgage lenders do want to see a solid two year full time work history from the same employer, however, that is not often the case with some home buyers.  Mortgage lenders can have their own mortgage lender overlays and require two years continuous work history with no gaps in employment history but there are mortgage lenders that will be lenient with gaps in employment history as long as  the mortgage loan borrower has had a prior two year work history.  The mortgage loan borrower can be off work for a year and still qualify for a mortgage loan as long as he or she has been employed for at least six months.  Any gaps in employment history six months or under require no seasoning requirement with the new job as long as they can provide a recent paycheck stub and verification of employment that states that the borrower’s employment is likely to continue.

Gaps In Employment History: Case Study On A Recent Closing

I just closed on a mortgage loan where the home buyer has gotten a mortgage loan denial by several mortgage lenders due to having gaps in employment history.  It was an extreme case and a great example on how I can get mortgage loan approvals for borrower’s who has gotten denied for a loan for having gaps in employment.

Here Is The Case Scenario

My borrower has taken 9 months off work in 2012 due to medical reasons.  She then went back to work and quit her job in February of 2013 within three weeks of returning to work.  Her hourly wage was $9.00 per hour.  She then got another job in March of 2013 making $12.00 per hour.  However, she only worked 20 to 30 hours per week due to her being on probationary basis.  In September 2013 she completed the probationary period and was given a guaranteed 40 hours per week.  She applied for a mortgage loan with me in November 15, 2013 after getting denied by many mortgage lenders due to her gaps in employment.  I got a approve eligible via Fannie Mae’s Automated Underwriting System.  I have wholesale mortgage lenders who have no lender overlays and the approve eligible DU FINDINGS is the mortgage approval so I knew I could get the deal done but I stll needed to get underwriting approval.   The underwriter gave me thumbs up and got the deal approved.  We used her current income of $12.00 per hour and we needed to verify two year employment history.  Since she had a 9 month gap in employment back in 2012, we needed to get a verification of employment dating back to 2011 from a previous employer.  Everything checked out and we closed the mortgage loan on January 10, 2014, last Friday.

College Graduates With No 2 Year Employment History: Can Recent College Graduates Qualify For A Mortgage Loan?

I deal with many first time home buyers who are first time home buyers but lack the two year employment history requirement.  The good news is that as long as the home buyer has been a full time student and just got a job, the two year employment history is waived.  The time the home buyer was a full time student is counted the same as work experience.

If you are a mortgage loan borrower or a realtor who has a client in Illinois, Florida, Wisconsin, Indiana, Texas, or California who are having trouble getting a mortgage loan approval due to gaps in employment, please contact me at 262-716-8151 or at www.gustancho.com .  I might be able to help.  I represent wholesale mortgage lenders who have no mortgage lender overlays and as long as the letter of explanation states the extenuating circumstances for the reason of gaps of employment, we should be set to go.  I can also help mortgage loan borrowers who had a prior bankruptcy or foreclosure qualify for the FHA Back to Work Extenuating Circumstances due to an economic event for folks in Illinois, Florida, Wisconsin, Texas, Indiana, and California.  The Back to Work Extenuating Circumstances due to an economic event mortgage loan program shortens the waiting period to one year for home buyers who had a prior bankruptcy, foreclosure, deed in lieu of foreclosure, or short sale as long as they have been unemployed or underemployed six months prior to the unfortunate economic event in Illinois, Florida, Wisconsin, Indiana, and California.  These are manual underwrites and the max debt to income ratios are capped at 43%.

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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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