Do you have a new job and need a loan. The offer letter is your answer. Offer letter income is acceptable evidence of income. There are several types of offer letters: New job, pay increase, and relocation. But Joe, you are mixing common sense and lending. I know but there are conditions of course. In recent history lenders have required a 30 day history for new jobs thus making job offer letters useless. Now lenders are working with borrowers and accepting job offer letters as proof of income.

The main requirements for the offer letter are:

Non-contingent signed offer letter

Start date within 90 days of closing

Subject property is primary residence

Qualifying debt to income ratios and 3 month of reserves

The name of this program is recent graduate or relocating mortgage program. As the name implies; this program works for recent graduates. The same guidelines apply to recent graduates as revocations.

This is great news for recent graduates. You can move for a job and not be forced into renting, buying is an option if you have the right paperwork.

In most circumstances the loan amount is limited to the local conforming loan limits.

What are the current levels of home ownership? Recent reports are estimating about 62% of households own their own homes. This is on the low side based on the last 50 years. In other recent surveys; the desire for the American dream of owning a home is alive and well. Areas of the country that were hit the hardest are recovering. Home buyers are returning to areas like Arizona and Texas. Check your local market and try to figure out what the smart money is doing.

Joe LaVallie
The Integrity Team
Mortgage Banker
joe.lavallie@homestreet.com