Job Gap

FHA, Fannie Mae & Freddie Mac – Income from 1099 to W2: Is there a waiting period for a borrower that changes from a 1099 job to a W2 job?

Answer – FHA Says: While FHA has a ‘6-month rule’ regarding gaps in employment, I do not believe that your situation is necessarily a ‘gap in employment’.  The 6-month rule is referring to borrowers who leave the workforce for 6 months or more.  It sounds as if your borrower never stopped working.  That said, 1099 income [...]

2018-10-25T08:21:42-05:00October 25th, 2018|

Fannie Mae, Freddie Mac & FHA – Unemployment Job Gap: Can someone with a 6.5-month unemployment gap who now has a stable job be eligible for financing, if it is less than 6 months?

Answer – Fannie Mae and Freddie Mac Say: There is no specific waiting time listed in the selling guides (for either Fannie or Freddie) that require a borrower to be back to work for six months. You can see that all that is required below is the borrower must explain their employment gap, and there [...]

2018-10-24T12:28:07-05:00October 25th, 2018|

Fannie Mae – Job Gap: If a borrower has not worked for the last two years due to caring for an ailing parent, can I count his new salaried job which is the same line of work before the gap?

Answer: Fannie Mae does not have a ‘time back on the job” requirement.  If you simply document the file with the reason for the gap along with a prior income history in the same field (prior years’ W2’s while still working), and evidence of unemployment income, if available, then you should be okay.  Fannie Mae [...]

2018-05-29T17:00:38-05:00April 24th, 2018|