Posted on: 11th Mar, 2010 02:58 pm
I am a prospective first time home buyer and collected unemployemnt for parts of 2008/2009. I have worked for my current employer for the past 4 years and collected unemployment to supplement my income due to a shortage of work available. During the time period I collected, I was never laid off and was on the company's payroll the entire time working reduced hours(sometimes 5-10/wk). In June of 2009 I was promoted within the company and have worked full time ever since. I understand that underwriters look for gaps in employment and wonder if this time of low hours and unemployment collection could stop me from getting a loan. Any help would be appreciated. Thanks.
FHA guidelines for qualifying for a FHA loan - Two Years of steady employment, preferably with same employer. (You qualify for that)
Last two years Income should be the same or increasing. (You qualify for that too)
If you can prove to the bank or lender a streaming payroll with the same employer for 4 years and even a better income flow for the last 8-10 month, I would say your chances are OK regarding this aspect of the mortgage terms.
There all the other things to take care of: credit score, debts, gross income to mortgage ratio ect.
Last two years Income should be the same or increasing. (You qualify for that too)
If you can prove to the bank or lender a streaming payroll with the same employer for 4 years and even a better income flow for the last 8-10 month, I would say your chances are OK regarding this aspect of the mortgage terms.
There all the other things to take care of: credit score, debts, gross income to mortgage ratio ect.
it is not uncommon for people who are full-time employees to also have periods in which they collect unemployment. this applies to those who have seasonal-type jobs or where there are periods of shut-down for some reason. in your case, you've been promoted and those periods won't exist any longer.
your lender may request a written verification of employment that will document your new situation with the employer, to the extent that you're now salaried and won't be subject any longer to unemployment periods. i think that ought to serve you well.
dekeld is correct about the other factors - i take it that you've already passed over those hurdles, though.
your lender may request a written verification of employment that will document your new situation with the employer, to the extent that you're now salaried and won't be subject any longer to unemployment periods. i think that ought to serve you well.
dekeld is correct about the other factors - i take it that you've already passed over those hurdles, though.
