Can I Get Mortgage After Unemployement?

Qualifying For Mortgage After Unemployment

Gustan Cho Associates

Many mortgage loan applicants assume that you need two years continous employment history in order to qualify for a mortgage loan.  Many just assume that one of the questions asked on a mortgage loan application is the two year employment history. To top this off, many mortgage loan applicants go on the internet and read mortgage blogs from writers who are not in the mortgage business and write blogs that a mortgage loan applicant needs two years of continuous employment history or they will not qualify. Bottom line is that a mortgage loan borrower can qualify for a mortgage after unemployment and you do not need two years of continuous employment history and gaps in employment in the past two years will not disqualify you for a mortgage. Many mortgage lenders do have mortgage lender overlays and do prefer that the mortgage loan borrower has had two years continuous employment with the same employer because stability in employment shows financial stability to the mortgage lender and the likelihood of continuous employment for the mortgage loan borrower.

Gaps In Employment: Mortgage After Unemployment

Here is the rules and regulations with regards to employment history when qualifying for a mortgage loan.  Mortgage lending guidelines does require a two year employment history but the employment history does not have to be continous with the same job.  You could have had multiple jobs in the past two years with different pay levels but only your most current full time job will be used for income qualification purposes.  Mortgage lenders want to see continuity of employment and likelihood for future employment so they do not have trouble paying for their mortgage payments timely.  A verfication of employment will be required from the current full time employer and one of the questions the mortgage lender will ask is if the likelihood of continous employment is likely.  I have originated many mortgage loan applications where a mortgage loan borrower had multiple temporary jobs, gaps in employment, part time jobs, working for a temp agency, and all of a sudden landed a solid full time job with an employer.  There are cases where I had a mortgage loan borrower who worked for a temp agency and the temp agency placed them in a job and the employer who used the temp worker was so impressed with their work that they hired them full time where they no longer works for a temp agency.  There are folks who lost their jobs or business due to the Great Recession of 2008 and have been unemployed for many years and finally got a full time solid job.  These folks will qualify for a mortgage even though they were unemployed for many years.  The 2 year employment history mean employment history and not continous employment history.  For example, if Borrower A has a full time job working for Company A and has been working at Company A for six months but was unemployed for 3 years, Borrower A needs to provide one and one half year of prior employment history prior to his unemployment period.

How Long Do You Have To Be On New Job To Qualify For Mortgage After Unemployment?

There are current job longevity requirements when it comes to qualifying for a mortgage after unemployment.  If you have been unemployed for six months or less and have a new job, then there is no longevity or seasoning requirement to be on your new job.  30 days of paycheck stubs is required to close on your loan but you will qualify the minute you get your new job and your employer verifies that you are employed full time and your employment is likely to continous.  However, if you have been unemployed for six or more months, you need to be on your new full time job for at least six months in order to qualify for a mortgage after unemployment.

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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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