2 yrs employment???

[wealthygirl]

After being a SAHM for 7.5 yrs, I finally returned to work in Oct. 08 with the Federal Gov't.  Hubby and I have worked diligently to get our finances in order so that we can buy a home in 2010.

Is it true that you have to be employed for 2 yrs minimum in order to get a mortgage loan?  I have the higher of the fico scores (EQ 718  TU 719), hubby's are not so good (improving, however) (EQ 565 TU  547).  DH has been employed in the same industry for 10 yrs but with his scores being so low, I would have to be the primary on the loan app.  However, If the 2 yr employment min. is true, then I wouldn't qualify due to only 1 yr of employment. 

Please advise....(HAPPY NEW YEAR!)

[Anonymous]

yes, it is.  You have to have 2 years continuous employment unless you are coming out of college.

[Anonymous]

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@wealthygirl wrote:

...I have the higher of the fico scores (EQ 718  TU 719), hubby's are not so good (improving, however) (EQ 565 TU  547)...I would have to be the primary on the loan app.  However, If the 2 yr employment min. is true, then I wouldn't qualify due to only 1 yr of employment. 

Please advise...(HAPPY NEW YEAR!)

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Just FYI, there is no "primary" regarding your application/situation if both names are on the loan. The lender will look at BOTH you and your husband's scores, and the LOWER mid-score will be your score. For example, if your mid-score is the EQ 718, and your husband's is the EQ 565, your joint qualifying score would be the 565, the lower mid-score of the two. The only way for your score to become the qualifying one is for you to be the ONLY name on the loan, and that would require -- as you note -- two years of continuous employment.

[Anonymous]

I thought that one of the loan officers had responded to someone with a similar question a while ago and said that they had seen approvals with less than 2 years  of continuous work experience where the applicant was a parent who had been at home taking care of children.  Wouldn't it depend on the rest of the of the file, though?  If the file is realatively strong then maybe less than 2 years would be overlooked if there was a reasonable explanation?

[Anonymous]

while there are always some room for exceptions, especially with a short term break in employment, 7 and 1/2 years without a job is going to be tough.  Maybe if you went straight back to the same employer and position after the seven years, but that is highly unlikely.  Probably 95% chance they are going to say no.

[hawkeye33]

I would guess that a strong file could overcome the length of employment issue, but as another poster suggested, the bigger issue here is the DH's low scores. If the DH's income needs to be included, then he needs to be on the loan, and if he is on the loan in any capacity, the mid-score used for approval will be his (the lower). And with those scores, it will be next to impossible to get approval.

[Anonymous]

Also, if someone is at 20 months or something they may be given some room to manuevar as by the time a deal would close, it would be getting alot closer to 24 months.  But if someone is back ont he job for 6-12 months and looking for an exception it will be a very tough sell.

[wealthygirl]

Thanks for replying everyone!

Definitely gives me some things to consider before starting the homebuying journey!

Here's the backstory...I resigned from my job in 2001 to be a SAHM.  DH was the sole provider in the up/down automotive industry (auto mechanic).  His credit took the most hits because, as a flat-rate employee, his salary fluctuated.  We struggled terribly to meet the most basic of expenses---finally, after  applying for jobs over a 5 yr period, I landed the one I have now. 

Hubby is still in the auto industry but is making a guaranteed salary.  I re-entered the workforce making $30k more than when I resigned.  We have cleaned up our credit tremendously in the last 4 months thanks to the great info/tips from myfico forums. I have NO credit card debt...I'm hopeful that a lender will look beyond my employment history to see that we are financially able to own a home.  

Our homebuying journey begins in 2010! 

HAPPY NEW YEAR

~Wealthygirl~