Job gaps in mortgage qualification

Job Gaps

Job Gaps In Mortgage Qualification

If someone wants to apply for a mortgage, there are certain requirements.  You need good credit, you need a job with consistent income, you need assets, and you cannot have open liabilities like judgements and tax liens.

One of the most important factors a mortgage lender wants to see is your ability to pay your future mortgage payments on a timely basis.  The way they derive to this probability is how long you have been in your current job and your historical salary pattern.  The longer you have been in a particular field and job, the less of a risk factor you are.  How about if you have a history of job hopping or worse yet, you have a history of job gaps or periods of unemployment.

What mortgage lenders want to see

The majority of mortgage lenders want to see a minimum of two years full time employment.  Job gaps in mortgage qualification is extremely scrutinized and not viewed favorably.  There are rules and regulations in determining job gaps in mortgage qualification.

Minimum job gaps in mortgage qualification

If you are planning on applying for a mortgage loan and you had a temporary period of unemployment, you can still qualify for a mortgage loan.  If you were laid off from a job for no longer than six months, you can still qualify for a mortgage loan and will not get penalized for being laid off.  You can be on your new job for less than 30 days and still qualify for a mortgage loan as long as you have not been laid off longer than six months.  However, if you have been unemployed for longer than six months, you need to have at least six months longevity on your new job in order for the mortgage lender to approve you for a mortgage loan.  Any periods of unemployment of greater than six months, there is a six month new job seasoning requirement.  You can be employed in a different industry or field with your new job as long as the salary is comparable.

Related> Gaps in Employment: 2014 4th Quarter Update

Related> Gaps In Employment

Related> Multiple Jobs And Gaps In Employment

Related> Hard Money Capital Group

Related> Private Money Capital Group

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.