Posted on: 30th Apr, 2009 11:16 am
Hi I am a prospective first-time homebuyer. I hope to get approved for an FHA-insured loan. If there are any experts or quasi-experts on the FHA process from the "lender's" prospective, maybe you could help me with my question. It has to do with whether I meet the qualifications for an FHA loan.
First of all, I have good credit, no debt, and meet the salary requirement ($5200 monthly, $65K annually) for the homes for which I'd be applying ($200,000). My concern has to do with my employment history. I've only been at my current job in the pharmaceutical field for 6 months now. I was in this same job from 2002-2006. However, between 2006-late 2008, I was employed in 3 different non-profit low-salary jobs, one of which was overseas. So, from the bank's limited scope of 2 years back, it looks like I've had 4 different jobs and 3 months of collecting unemployment. However, I've been at the same job for 5 years, it's just not been consecutively.
Any reads on my chance of getting approved. Can I explain my case or is there criteria completely objective?
Thanks!!!
First of all, I have good credit, no debt, and meet the salary requirement ($5200 monthly, $65K annually) for the homes for which I'd be applying ($200,000). My concern has to do with my employment history. I've only been at my current job in the pharmaceutical field for 6 months now. I was in this same job from 2002-2006. However, between 2006-late 2008, I was employed in 3 different non-profit low-salary jobs, one of which was overseas. So, from the bank's limited scope of 2 years back, it looks like I've had 4 different jobs and 3 months of collecting unemployment. However, I've been at the same job for 5 years, it's just not been consecutively.
Any reads on my chance of getting approved. Can I explain my case or is there criteria completely objective?
Thanks!!!
you can definitely defend yourself and explain what transpired. it's not like this new employment is unusual to you; after all, you were in that same profession earlier. there is a lot of common sense still applied to borrowers' job situations. you have not, apparently, been out of work in these periods for long, and you've got a consistency that is favorable. i think you'll be fine.
I have to agree with george as you have been in the same industry for 5 years and havent been out of work for too long. If you explain your situation and what happened during those times im sure you wont have too much trouble.
Thanks Mr. Akerley! It's encouraging to hear that there is some subjectivity to the bank's decisions. I assume the process will be explained to me when I contact the bank, but real quick--- what is the typical means for a borrower to explain the anomolies in their application (i.e., my employment history)? Would I attach an explanation letter to my application at the onset or should I wait to see if I'm approved first before justifying myself? Would I have any opportunity to explain things face-to-face or is that not how things are done any more?
I really appreciate your help!
I really appreciate your help!
Hi
I do believe you'll have a chance to discuss things face-to-face with a loan officer. He would be able to guide you regarding this. As far as your employment history is concerned, I don't think it's going to affect your chances of qualifying for the loan. After all you do have a work experience of 5 years in the same field and even when you were not not working in your field of expertise, you still had some low-salary jobs. So, I think you have a good chance of qualifying for a loan.
I do believe you'll have a chance to discuss things face-to-face with a loan officer. He would be able to guide you regarding this. As far as your employment history is concerned, I don't think it's going to affect your chances of qualifying for the loan. After all you do have a work experience of 5 years in the same field and even when you were not not working in your field of expertise, you still had some low-salary jobs. So, I think you have a good chance of qualifying for a loan.
peter when you sit down with a loan officer, this is a topic you will want to discuss. usually, loan officers have a feel for what will be requested by an underwriter in way of explanation, and that may allow you to tailor your explanatory letter just so. honestly, it's just a matter of laying out the situation so that it all makes sense.
again, there doesn't appear to be any real difficulties lying in wait for you.
again, there doesn't appear to be any real difficulties lying in wait for you.