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One of the requirements to get a home loan is providing proof of 2 years of consistent employment.
But it doesn’t mean that you’re not qualified for home buying if you have just started your career or recently switched careers.
In fact, employment history is just one of the requirements and could be a challenge for first-time homebuyers.
But if the borrower can prove that they are a strong borrower and do not pose risk to the lender one can get around a 2-year job history.
While looking at your loan profile, a lender wants to be sure that you are able to repay the loan. But they also look at your credit, your income – including your employment and your assets and your down payment.
Since the lenders consider the full picture of your mortgage application, it’s possible to make up for the employment history by being strong in a credit score or your assets areas.
If you have stunning credit, can put down a good chunk, and have money in reserves have low DTI and if your new mortgage payment is lower or the same s your current paying amount then the lenders can consider your case.
You as a borrower need to prove that you can afford the monthly payments on your loan.
Lenders look for consistency but have been jumping jobs but in the same or related field then you are considered because you have been having a consistent income.
In fact for high-income professionals like doctors and attorneys, even schooling is counted as employment.
Gigs, seasonal, and contract workers who might not have full-time work or steady monthly income then even their unemployment money is considered as income.
Depending on the mortgage loan program, or the lenders, the flexibility will depend.
Loan type employment rules are:
- FHA loans and conventional loans – Borrowers need two years of employment history and a minimum of six months on their current job.
- VA loans – borrowers should have a minimum of two years of employment, schooling, or military service
- USDA loans two years’ work history but doesn’t stress on minimum time at the current position.
Reference Source: The Mortgage Report
