It is fairly well known that in order to get any type of loan, including an FHA loan, you need a 2-year job history. Of course, as with every other program, there are exceptions to the rule. If you are at a new job, you will have some more verification to do than someone would have to do if they were at their current job for 2 years or longer. The longer you are at your job, the more consistency you display to the lender and the lower risk you pose to them. A person that hops from job to job shows inconsistencies and is considered a higher risk, but this does not mean that you will not be able to get qualified. Even if you have a new job and want to get FHA financing, you might be eligible, but you will have to prove your previous income in order for the lender to make an accurate decision based on all of your qualifying factors.

1. DocumentingyourJob
HistoryforanFHALoan

2. It is fairly well known that in order to get any type of loan,
including an FHA loan, you need a 2-year job history. Of
course, as with every other program, there are exceptions to
the rule. If you are at a new job, you will have some more
verification to do than someone would have to do if they
were at their current job for 2 years or longer.

3. Verificationof2YearJobHistory
If you have at least two years at the same job, you should have
a fairly easy time verifying your employment. The lender will
ask that you provide your most recent paystubs (typically 2),
the last two years’ W-2s, and your tax returns if you have any
bonus or overtime income included in your pay.

4. DealingwithaNewJob
If you have a fairly new job, or you just have not been at your
current job for the full two years, you will have to provide the
lender with a little more verification in order to ensure that you
are able to pay the loan back. You will also need to provide a
history of where you worked or what you did during the time
before your current job.

5. Afewreasonsforagapinyouremploymentthatare
typicallyconsideredacceptableinclude:
Stopped working to raise children
Stopped working to go back to college

6. EffectiveandStable
Income

7. What they want to know is that you have probability of
continued employment. This can be demonstrated in a variety
of ways including:
A statement from your employer stating your probable
continuance at the current job
Proof of any training or education you have that
qualifies you for the position
Past employment history that shows your qualifications
for the job

8. Even if you have frequent job
changes, you might be able to get
an FHA loan if you can show that
the job changes were to make you
better. They cannot be because
you were bored at your current
job.

9. WhenyoucanUse
CommissionIncome
Commission income is not always considered stable, so it is a
grey area for FHA lenders. According to the FHA, if any
commission positions are held for one year or less, they are not
eligible to be used as effective income on an FHA loan.

10. Today,lendersaremuchmoreforgivingandflexible when
it comes to qualifying borrowers for an FHA loan. As long as
you can show an upward trend in your job history, even if
there are many job changes, if they are always for a higher
position or higher pay, you will be able to use them for
qualifying purposes.

11. Finding the
Best FHA Lender
BestFHALender is a one­stop shop offering useful
information about FHA loans and enabling customers to
shop for multiple lenders.
CLICK HERE TO LEARN MORE

12. Information Provided by
Justin Mchood
He is Americas Mortgage Commentator
and has been providing Mortgage
commentary for over 10 years.

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