A client emailed me today stating he went back to work July2010. Prior to that he had gone to taken a break from work to get back to school to acquie a special certification which advanced him in his career. He was fretting about how this would affect his qualifying. Here’s what i told him
FHA typically requires at least 6 months unbroken continuance at work AFTER a significant job gap. So he’s fine. Nonetheless , he’d have been ok regardless even after 30-days since (i) he has proof of special education/cert. relevant to his new job and (ii) a previous job history PRIOR to the break for education.

4 Responses to “Job Gaps: here’s the scoop for FHA”
  1. Mike says:

    I am in escrow and BofA is doing my loan here in Madison, Wisconsin. I told the guy from the beginning that I was out of work between August and December and just went back this month. He told me no problem, and now the idiot is telling me he cant use my income. WTF???? Went through underwriting he says the underwriter wont use it. Dumbass. I need to get my deposit back. Is he being accurate or whats the deal?

  2. Administrator says:

    Mike
    call me to discuss, better.
    Typically if there is a **pattern** of job gaps, then the FHA underwriter should insist you’re back to work for 6 months before she uses your income to qualify. However if your job gap last yr was an isolated incident and you’ve otherwise got an unbroken job history, there should not be a problem using your BASE PAY to qualify you.
    A good explanation for the job gap should be put into the file.
    Charles

  3. Danny says:

    My buddy down in Calexico is buying a home, but doesn’t speak English. I might end up cosigning for him because they’re now telling him he dont make enough to qualify. Gonzalo works picking fruits during the summer and stuff, and during the winter he always takes like 2-3 months off. He goes on unemploymemnt. Seems to me like they ought to allow that ‘cause it’s the same every year. He’s been doing it for like 10yrs. What can you tell us? I see you’re in Murrieta. Can you do loans down in Imperial County?

    • Administrator says:

      Yes we can fund loans all over California and other States. The type of work Gonzalo does sounds like it’s what we call ‘seasonal’. FHA allows for this to be used in addition to the normal unemployment compensation he’d receive for the period of time he’s off work. We have to show at least a 2yr pattern/track history of this. But shouldn’t be a problem.

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