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Exceptions to FHA 2-year employment rule???

Hi there - I'm confused about FHA and whether my husband and I can apply yet. We both have scores around 700, so I'm pretty sure we're good in terms of credit, but I don't understand whether I can be considered for an FHA mortgage or not. I was a stay at home mom for about 5 years, then went back to work about a year and a half ago. I've been with the same employer since then. I'll have 2 years in September. A while back, I saw a post online where someone said that if one spouse was working and the other spouse was at home with small children and returned to work, FHA can make an exception to the two years of employment rule and count the income of the previously at-home spouse. On another post some time later, however, someone said this is a strict requirement and can't be overridden. So, my question is, which is correct? We would love to apply for a mortgage and start looking in late spring/early summer, but we'd definitely have more options if my income were included, so I guess we might have to wait till September if that's the case. We have 3 kids - 2 are school-aged, so we're hoping to avoid switching school districts during a school year. by goodyw_681_837 from Annville, Pennsylvania. Mar 26th 2013 Reply


Keith Zielaskowski (KeithZ)
#75 ranked lender in Pennsylvania - 5 contributions

Actually the rule is that we need to document the last two years of employment. It does not necessarily mean that we require that someone be working for that entire two year time frame. Our rule is that if someone has come back into the workforce, we look for six months worth of recent employment on the job. We will still ask for the two year history because we need that information but will only require that the individual be employed currently and for the last six months. Does that help?Keith Zielaskowski(610) 898-6896

Mar 26th 2013
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Kenneth Kopper (KenKopper)
#19 ranked lender in Maryland - 542 contributions

Ive run into this issue before where it was only 7 months of employment history since returning to the workforce and we could NOT include that income but I would think with over 1 year and closer to 2 years with stable earnings should allow to inlcude that income for qualifying purposes. You may want to get this specifically addressed with a loan officer and have them run the scenario past an underwriter for feedback no.

Mar 26th 2013
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,728 contributions

FHA allows for exceptions in the 2 year rule, but some lenders have overlay's that disallow less than 2 years.. For this reason, you're better off contacting a local mortgage broker and apply with them.. Because they have a network of multiple lender, they can find the right lender for your particular scenario.. You should have no problem at all... so start looking.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Mar 26th 2013
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Bert Carpenter (BertCarpenter)
#1 ranked lender in Arizona - 2,211 contributions

Most lenders will look at the whole picture and not hold fast and true to the tow year rule. I've done FHA loans for folks that are on the job for 4-6 months, but were in college previously. If you are the sole bread winner, it could be a little more difficult. If your income is supplementing the household income it is probably usable by the underwriter. Work with a local out of college only 4-6 months, and their current job is only Mortgage Banker/Broker rather than one of the big banks or big national mortgage factories. Unlike a bank employee, who is most likely just an order taker, a Mortgage Broker/Banker is Trained, Tested and Licensed in all aspects of Mortgage Origination. We have access to loan products of MANY lenders, not just those of ONE bank, and can properly guide you to an investor that will accommodate your situation. Don't forget to check out your selected Mortgage Originator at the National Mortgage Licensing System at www.NMLSConsumerAccess.org ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Licensed in California and Arizona ~ www.LoansA2z.com 888-889-9950

Mar 27th 2013
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Keith Zielaskowski (KeithZ)
#75 ranked lender in Pennsylvania - 5 contributions

Actually the rule is that we need to document the last two years of employment. It does not necessarily mean that we require that someone be working for that entire two year time frame. Our rule is that if someone has come back into the workforce, we look for six months worth of recent employment on the job. We will still ask for the two year history because we need that information but will only require that the individual be employed currently and for the last six months. Does that help?

Mar 26th 2013
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Benjamin Bote (Benjamin)
#808 ranked lender in California - 20 contributions

Based on the info you provided, you should have no problem getting the loan. Find a local lender and apply.

Mar 26th 2013
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Mark Simon (mark.simon)
#10 ranked lender in Delaware - 83 contributions

You have some good responses and if you would like to get to the bottom line today I can give you direction over the phone for the best rates and fees. I am a resident of Pennsylvania and would be glad to speak with you today. Mark 302-449-7373. We are also approved for the other federal programs that may be worthy of considering.

Mar 26th 2013
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Peter Savino (855411LEND)
#100 ranked lender in New Jersey - 332 contributions

Some really good answers here, the take away is that each lender has a diffrent idea to what they are exactly looking for.

Mar 26th 2013
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Thank you all for the responses - very helpful! Sounds like lenders have some leeway, and I have one in line, so I'll give them a call!

Mar 26th 2013
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Jarred Minieri (jarredminieri)
#11 ranked lender in Rhode Island - 20 contributions

Hi, Sorry you are getign conflicting information. But the fact of the matter is that you are not required to have a 2 year employment history when applying for any loan, nonetheless an FHA loan. That said yes we do ask for a 2 year employment history, but that has no basis on your approval. The 2 year rule applies to individuals who are self-employed. If you are, then yes your income probably will not be able to be counted until you file 2 consecutive years tax returns. However if you are not self-employed, and are a W-2 employee and receive regular paychecks etc... You should be prefectly fine. If you'd like to cut through the clutter and dicuss your situation I can also provide you with much more informatio you will find extremley useful. I am the manager of a Federal Savings Bank. Our office is located in New Jersey, but we do extensive lending all over P.A. Jarred V. Minieri - Branch Manager; First National Bank (866)640-5513 - jarred@betterfinancing.net

Mar 26th 2013
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Carlo Sanchez (MortgageLendingPro)
#0 ranked lender in Utah - 1,163 contributions

All answered well but make sure to check with the lender you have in mind that their guidelines will allow your situation with them.

Mar 26th 2013
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Michelle Curtis Loan Originator NMLS 401173 (EmbassyFundingLLC)
#77 ranked lender in Florida - 2,244 contributions

What will matter is the findings once ran through the automated underwriting system. FHA will make exceptions, but you need to be sure you are using a lender that does not use overlays requiring 2 year history regardless of the findingsCall us or email us at 201-962-3555 or Team@BestMortgageOption.com for ano cost no obligation analysis of your situation.Ask for Michelle or Benny We will find the Best Mortgage Option to suit your needs!You can check us out at www.BestMortgageOption.com

Mar 26th 2013
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Dave Metsker (DaveMetsker)
#36 ranked lender in Oregon - 2,318 contributions

Good answers. Contact one or more of the forum members in your area.

Mar 26th 2013
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Barb Lanis (BarbLanis)
#69 ranked lender in Illinois - 663 contributions

6 months of employment after returning to work should be sufficient for FHA. Same line of work, though.

Mar 26th 2013
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