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Overtime exception rule for FHA

Hi I recently applied for a fha loan and hoping to hear good news tomorrow. My worry is I was laid off from my career of 12 years a years ago when the industry slowed down so I worked elsewhere till things picked up. When I returned to my career 8 months ago the regulations of how they paid us changed and forced them to convert us from salary with a day rate to hourly. We work 24hrs a day for 2 weeks and then off for 2 weeks. So most of my income is now overtime. My employer gave us documentation stated why they changed this pay structure and that we are required to be on the job paid 24 hrs a day 2 weeks on and 2 weeks off. Will the Under writer with all proof of pay stubs be able to make the exception for this situation of pay? by jneatv93 from , California. Apr 10th 2018 Reply


Barry Harris (bhhomeloan@gmail.com)
#1042 ranked lender in California - 9 contributions

Your question is a good one and given you have already applied for your FHA loan, your loan originator should have given you some ideas as to what is possible. The short answer to this is, it depends. Typically, O/T can't be used until you have been on the same job for 2 years but exceptions can be made if the written verification of employment from your employers states the probability of a regular amount of O/T is excellent. Then, the UW has the option of taking a 24 month average for the amount of time you have been at your current employer, which will increase your average monthly income.

Apr 11th 2018
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,481 contributions

The short answer is that if the over time is mandatory.. then it can be counted.. so you should be ok.. .but it's typically the underwriters discretion. If things don't work out with your current lender, hit me up.. i'd be happy to look into your scenario further.. I'm a preferred Lender with California and Arizona being my primary markets. 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 NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893

Apr 11th 2018
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