subject: FHA Employment Requirements Does Your Job Time Really Mean Anything? [print this page] FHA Employment Requirements Does Your Job Time Really Mean Anything?
FHA Employment Requirements
Does Your Job Time Really Mean Anything?
FHA employment requirements are simple, and they are just the same as any lender would want to see on your application for your home loan. Employment is absolutely a necessary part of the mortgage loan process. Your income is a direct link to your ability to repay, so there is no point in not being truthful about your job time.
HUD does require the job time to be stable, so what FHA's employment requirements state that you should have been employed for the past two years. If the borrower has been serving in the military during this time that is fine, but everything must be documented. The same rule applies to anyone who would have been a student, so if you were in college that is no problem but they will want to see a transcript from your school. Any gaps in unemployment must be explained, and if you were on unemployment be honest about it. You don't want to get into the process of starting a loan application if you know you won't be able to finish it.
The underwriter's job is simply to make sure that there is a steady source of income in the home in order to get the loan approved. From a bank's perspective, they obviously don't wish to approve someone who can't show steady earnings. FHA does have common sense underwriting so being able to repay your loan would make good sense. FHA's employment requirements are put into a place as a safeguard for your loan, so don't view this as a stumbling block to the process. They also know that by looking at your application, that if you weren't able to hold down a job that you may not be stable enough to repay the loan back. This makes sense, and it does prove a trend, which shows that those who have trouble keeping a steady job don't pay their obligations. Deep down, the feeling is that those who can't stick with, have a really hard time with commitment.
One other thing to keep in mind, is that when there are dramatic changes in income this will raise a red flag. Underwriter's are hesitant about approving loan applications for large swings in income that are so drastic. Income going from minimal to large, then large to minimal are frightening in their eyes. Again, it's all about stability so keep this in mind when you decide to either buy a home, or refinance the one you have. FHA's employment requirements do make sense, and just remember it's all about them running a business just as you would your own and being able to secure what they give you.
For more information on FHA, and what you can do to today, you can go to www.fhaloansnow.net.
