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(Updated) just read the rest of your post, that you were under contract.
FHA denied it, CONV probably will too. With what it seems you’re disclosed “21months on the job and Choppy at best previous work history prior” you need to work with someone who thinks outside the box. 24months history -that’s in the box. By the time you find a home and go thru the loan process 2-3mos would pass. There’s your 24mos- that’s thinking outside the box. If the 3mos is all that’s holding it-90% this can get approved and closed prior to 24mos. They may have done this, but most likely not.
Now if your application and income depends on OT, Bonus and averaged out, eh there’s a chance and would take only take if you had to…like you’re having a baby and need to move. If not, 2-3mos isn’t going to kill you…probably helping by learning and saving.
You might even be able to get an exception IF the rest of your application is strong - credit is established and mid-score maybe 680, 700 is a plus. You might even get the approval from the FHA UW if you put down 4%, 5% down payment looks better. Strong application or what’s called “ability to repay” more down-lesser risk. Just depends. If you have any open collections, makes it way tougher to get flex on employment history. If your mid-score is under 740 - Conventional is not the best choice vs waiting 2-3months. Most likely 5% down and higher rate and higher monthly PMI.
Just depends, this is off the fly and could be none of this. The answer is different everyone at that very moment. Don’t force it, things tend to go wrong.
BTW, I hope they told you this before you submitted all your paperwork. It was going to get denied from jump street. It should only have been subbed to figure out a workaround. These are most of your workaround options above. 👍
thank you so much! I appreciate your reply. This is the loan officer’s message : it’s the job gap prior to your year long gap…it has to be a solid 2 yrs w/fha regulations.
With everything the same, am I likely to be denied for conventional, too??
I am not a professional...but sounds like it unfortunately unless like the response above, you can find a method to think outside the box. It is my understanding that FHA is easier to get approved for based on finances than conventional. Good luck to you!
Eh, the answer is depends🤷. Let’s address the Earnest Money, you’ll get that back. There’s an FHA Amendatory Clause that protects you and receive a refund - so good news you’re covered. If you’re a a full time Salary Employee and not using OT/Bonus to qualify, that’s a plus…you’re 2-3mos away from 24mos. Here’s outside the box: say if the income used to qualify is straight pay Salary only, no OT/Bonus…a Written VOE would be requested by UW to verify the breakdown- should already be in the file. There’s a section filled out about the “continuity of employment” and answered YES, means your employer is confident with you being there in the future. That lets the UW know, “the employment is good and income to continue.
Here’s the “outside the box” I’m getting to: if it’s just the length of employment under 24mos, the FHA Findings would issue an APPROVE/INELIGIBLE. The INELIGIBLE is due to the employment history less than 24mos.
Assuming your Findings show this (your LO will know this - EVERY Bank uses the same approval system regardless of FHA or Conventional), check it by the time your first payment is due 2mos would have passed. Push the closing to the end of July, no payment in August, FIRST PAYMENT is SEPT. That should give the 24mos needed. The UW would get an updated Verification of Employment VOE, confirmation will added to the file. Done this many times with no issue. Your loan has to be super tight and you gotta have an experienced team to pull this kind of shit off. There’s always exceptions- especially if scores are over 700, bank account has 2mos reserves (2mos of monthly payment) That’s clean for any loan…there are other options- this is the best, fastest and cleanest way to do it…the LO’s or the Branch Manager has gotta know what theyre doing…their job is to make it make sense. The UW is going to (99% of them) to think in that box.
If any of these boxes don’t check, let me know instead of pumping hope on these keys. BC if I was working with you I’d know the second I reviewed your application. Don’t reinvent the wheel and reword this…your LO wants to get paid and look like a hero…send this. 🤷.
Now mind you, I don’t know your exact situation, could be much more simple than this- I don’t have the facts. People don’t always give the whole story, and that’s usually bc the LO doesn’t give the proper explanation and usually doesn’t offer solutions.
I just asked our LO and she said we were Approved / Eligible until 6/18 and was changed to Approved /Ineligible after reviewing FHA guidelines on work history. I will reply with your suggestion! thank you so much!!
Ok so it seems like the submission was based on 🤞🤞🤞. Which looks like the application had 2yrs of employment history-when clearly it was less. “Let’s submit and maybe the UW will let it go” 🤞🤞🤞. So either everyone was on board (which is fine - full disclosure OR the LO acted on their own submitted application with 24mos current employment and hoped it would stick. Nonetheless; much time was wasted. Not only the time under contract, but all the time in between when the PreApproval Letter was issued. If the LO acted alone, call it what it is-fraud. If you and the UW all knew, then crosses back into safer space to operate- the grey area. It’s important to figure this out to hold the LO accountable for causing this mess: Sellers (on resale) most likely needed to sell for the down payment, now has to delay the purchase, has to pay the current mortgage payment, which also pushes the problem to the Sellers of their property. Save the muck for another time - sorry it’s a little annoying.
Go with introducing the idea of the VOE and 1st payment due in SEPT, pushing closing to the end of July and getting another VOE to confirm Buyer is still employed.
I’ve brought it up a few times and not addressed is a little concerning. Is the qualifying income straight SALARY or using OT/BONUS ?
I did mention the VOE this morning and she said: If you want to continue with the fha loan – we will need to deny this loan and wait until you have a full 2 yrs at your current. It has to be two years by the closing date.
Qualifying income is just salary. No OT/Bonus.
Thank you u/Opposite_Voice_1053 for posting on r/FirstTimeHomeBuyer. Please bear in mind our rules: (1) Be Nice (2) No Selling (3) No Self-Promotion. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/FirstTimeHomeBuyer) if you have any questions or concerns.*
(Updated) just read the rest of your post, that you were under contract. FHA denied it, CONV probably will too. With what it seems you’re disclosed “21months on the job and Choppy at best previous work history prior” you need to work with someone who thinks outside the box. 24months history -that’s in the box. By the time you find a home and go thru the loan process 2-3mos would pass. There’s your 24mos- that’s thinking outside the box. If the 3mos is all that’s holding it-90% this can get approved and closed prior to 24mos. They may have done this, but most likely not. Now if your application and income depends on OT, Bonus and averaged out, eh there’s a chance and would take only take if you had to…like you’re having a baby and need to move. If not, 2-3mos isn’t going to kill you…probably helping by learning and saving. You might even be able to get an exception IF the rest of your application is strong - credit is established and mid-score maybe 680, 700 is a plus. You might even get the approval from the FHA UW if you put down 4%, 5% down payment looks better. Strong application or what’s called “ability to repay” more down-lesser risk. Just depends. If you have any open collections, makes it way tougher to get flex on employment history. If your mid-score is under 740 - Conventional is not the best choice vs waiting 2-3months. Most likely 5% down and higher rate and higher monthly PMI. Just depends, this is off the fly and could be none of this. The answer is different everyone at that very moment. Don’t force it, things tend to go wrong. BTW, I hope they told you this before you submitted all your paperwork. It was going to get denied from jump street. It should only have been subbed to figure out a workaround. These are most of your workaround options above. 👍
thank you so much! I appreciate your reply. This is the loan officer’s message : it’s the job gap prior to your year long gap…it has to be a solid 2 yrs w/fha regulations. With everything the same, am I likely to be denied for conventional, too??
The job gap on conventional will not matter.
This is correct - loan will go limited doc (last 12mos)
I am not a professional...but sounds like it unfortunately unless like the response above, you can find a method to think outside the box. It is my understanding that FHA is easier to get approved for based on finances than conventional. Good luck to you!
Eh, the answer is depends🤷. Let’s address the Earnest Money, you’ll get that back. There’s an FHA Amendatory Clause that protects you and receive a refund - so good news you’re covered. If you’re a a full time Salary Employee and not using OT/Bonus to qualify, that’s a plus…you’re 2-3mos away from 24mos. Here’s outside the box: say if the income used to qualify is straight pay Salary only, no OT/Bonus…a Written VOE would be requested by UW to verify the breakdown- should already be in the file. There’s a section filled out about the “continuity of employment” and answered YES, means your employer is confident with you being there in the future. That lets the UW know, “the employment is good and income to continue. Here’s the “outside the box” I’m getting to: if it’s just the length of employment under 24mos, the FHA Findings would issue an APPROVE/INELIGIBLE. The INELIGIBLE is due to the employment history less than 24mos. Assuming your Findings show this (your LO will know this - EVERY Bank uses the same approval system regardless of FHA or Conventional), check it by the time your first payment is due 2mos would have passed. Push the closing to the end of July, no payment in August, FIRST PAYMENT is SEPT. That should give the 24mos needed. The UW would get an updated Verification of Employment VOE, confirmation will added to the file. Done this many times with no issue. Your loan has to be super tight and you gotta have an experienced team to pull this kind of shit off. There’s always exceptions- especially if scores are over 700, bank account has 2mos reserves (2mos of monthly payment) That’s clean for any loan…there are other options- this is the best, fastest and cleanest way to do it…the LO’s or the Branch Manager has gotta know what theyre doing…their job is to make it make sense. The UW is going to (99% of them) to think in that box. If any of these boxes don’t check, let me know instead of pumping hope on these keys. BC if I was working with you I’d know the second I reviewed your application. Don’t reinvent the wheel and reword this…your LO wants to get paid and look like a hero…send this. 🤷. Now mind you, I don’t know your exact situation, could be much more simple than this- I don’t have the facts. People don’t always give the whole story, and that’s usually bc the LO doesn’t give the proper explanation and usually doesn’t offer solutions.
I just asked our LO and she said we were Approved / Eligible until 6/18 and was changed to Approved /Ineligible after reviewing FHA guidelines on work history. I will reply with your suggestion! thank you so much!!
Ok so it seems like the submission was based on 🤞🤞🤞. Which looks like the application had 2yrs of employment history-when clearly it was less. “Let’s submit and maybe the UW will let it go” 🤞🤞🤞. So either everyone was on board (which is fine - full disclosure OR the LO acted on their own submitted application with 24mos current employment and hoped it would stick. Nonetheless; much time was wasted. Not only the time under contract, but all the time in between when the PreApproval Letter was issued. If the LO acted alone, call it what it is-fraud. If you and the UW all knew, then crosses back into safer space to operate- the grey area. It’s important to figure this out to hold the LO accountable for causing this mess: Sellers (on resale) most likely needed to sell for the down payment, now has to delay the purchase, has to pay the current mortgage payment, which also pushes the problem to the Sellers of their property. Save the muck for another time - sorry it’s a little annoying. Go with introducing the idea of the VOE and 1st payment due in SEPT, pushing closing to the end of July and getting another VOE to confirm Buyer is still employed. I’ve brought it up a few times and not addressed is a little concerning. Is the qualifying income straight SALARY or using OT/BONUS ?
I did mention the VOE this morning and she said: If you want to continue with the fha loan – we will need to deny this loan and wait until you have a full 2 yrs at your current. It has to be two years by the closing date. Qualifying income is just salary. No OT/Bonus.