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Replies (6)
- Julie Messina, "CNN Mortgage"
- Contributions:70
First, Halleluia and congrats in finding a new job!
Secondly, you obviously have good credit management habits and (possibly) a savings account if you can go six months without employment without affecting your credit rating or clean housing history. You are EXACTLY the type of borrower underwriters like to approve. In this economy job gaps are understandable. If your in your previous job, you were a W2 salaried wage earner with stable history of employment (2 years or more) in the same line of work you should be able to get a mortgage now with a letter of explanation about the job gap. This is assuming you are still in the same Line of work as a W2 wage earner under your new employer.
If you made a career change or are now working on commission you may need to show a two year history of income in your new occupation to qualify.
Guidelines are a little different for FHA vs. Conventional. How much money are you puting down on the purchase of your new home?
Secondly, you obviously have good credit management habits and (possibly) a savings account if you can go six months without employment without affecting your credit rating or clean housing history. You are EXACTLY the type of borrower underwriters like to approve. In this economy job gaps are understandable. If your in your previous job, you were a W2 salaried wage earner with stable history of employment (2 years or more) in the same line of work you should be able to get a mortgage now with a letter of explanation about the job gap. This is assuming you are still in the same Line of work as a W2 wage earner under your new employer.
If you made a career change or are now working on commission you may need to show a two year history of income in your new occupation to qualify.
Guidelines are a little different for FHA vs. Conventional. How much money are you puting down on the purchase of your new home?
- travelingJoel
- Contributions:3
Thanks, Julie, for the great, quick reply.
My life is almost always a little more complicated than the norm. The previous employment was W2 for >2 years at the same company. My new employment is W2 through my consulting company which is corp-corp with my clients. I have a long term contract I'm starting this week. The occupation is the same, the work is the same, the titles are similar.
I've got 70+k for a down payment. I'm really hoping that I can qualify for a 1st/2nd split to avoid PMI looking at 80/5-10% LTVs. That would put me in good shape for a 600-650k price house.
My life is almost always a little more complicated than the norm. The previous employment was W2 for >2 years at the same company. My new employment is W2 through my consulting company which is corp-corp with my clients. I have a long term contract I'm starting this week. The occupation is the same, the work is the same, the titles are similar.
I've got 70+k for a down payment. I'm really hoping that I can qualify for a 1st/2nd split to avoid PMI looking at 80/5-10% LTVs. That would put me in good shape for a 600-650k price house.
- Andrew Adams, "203K Specialist"
- Contributions:9349
Are you being paid through the consulting firm or the new company?
Do you own the consulting firm?
Do you own the consulting firm?
- travelingJoel
- Contributions:3
I own the consulting company. I am being paid through the consulting company. The contract is between my consulting company and a client.
Just to add some background and probably more confusion. Prior to my last position (2006-2009 as a salaried W2 employee of a non-related entity), I worked through and was paid by my consulting company for >2 years.
My initial question still stands. How long should I expect to need to be working under my current (new) arrangement in order for my income to be used in qualification? Is it a couple of pay cycles, months, 2 years?
Just to add some background and probably more confusion. Prior to my last position (2006-2009 as a salaried W2 employee of a non-related entity), I worked through and was paid by my consulting company for >2 years.
My initial question still stands. How long should I expect to need to be working under my current (new) arrangement in order for my income to be used in qualification? Is it a couple of pay cycles, months, 2 years?
- Andrew Adams, "203K Specialist"
- Contributions:9349
Not an easy answer.
But with a good loan officer and proof that you have had the consulting company prior to and can prove it, I would be pretty confident in being able to approve your employment income as is. Ideally you would have 2 years, required are 6 months, self employed income on the previous years 1040's. Your situation is unique in that you have been compensated the sam eway as you are now you just were direct for the most recent 2 years.
But with a good loan officer and proof that you have had the consulting company prior to and can prove it, I would be pretty confident in being able to approve your employment income as is. Ideally you would have 2 years, required are 6 months, self employed income on the previous years 1040's. Your situation is unique in that you have been compensated the sam eway as you are now you just were direct for the most recent 2 years.
- Brian Shah, "bsha100"
- Contributions:64
There are programs out there that you could be approved for, however there are some factors that will need to be looked at in closer detail. As stated in a previous answer, job gaps are becoming more frequent in this economy. Self employment will be the biggest hurdle here, but with a little work, a good Loan Officer should be able to place you. Good Luck.
loan qualification after layoff
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