Applied 1 week 1 day ago, got first request today....

[srhslev]

So last week we filled out our mortgage application, FHA.  Today I got the first request from the loan processor, and here's what she requested:

• Proof of all revolving debt that was paid prior to application- statements to show date of payoff and -0- balance. - No Prob
• Deferment papers from Sarah for SLSC account ending in PER24A - No Prob
• Work number outlines job with IRS Seasonal- please send letter explaining. 
• April Statement for M&T account - No Prob 
• Evidence or explanation as to where additional funds in amount of $5000 are coming from for closing. Bank accounts total $1415, gift $12000 amount needed to close $18,396. -No prob (funds will show on April bank statement). 

As an overview of the loan, our records indicate a request for a $117,216 mortgage, 30 year term and fixed rate of 4.25%. It also shows that you are escrowed for taxes and insurance. Your rate is locked in through 6/23/14 and loan must close by that time or extension fees may apply.

I am an IRS seasonal employee - the thing is, sometimes we are furloughed and sometimes we are not. There is no "regular" season for us that I can explain in simple terms because we do not know in advance when the furlough will be, or if there even will be one. For example, in 2013 I was furloughed for 6 months, but in 2012 I was not furloughed at all.  When I am put on furlough I am always eligible for unemployment. How can I explain this in a letter that will a. not make me sound like an idiot, and b. help the underwriter understand how my job works?  Does this look really bad for a mortgage?

[StartingOver10]

Just like you explained it here. They are looking for a paragraph, short and to the point, for the file.

It won't look bad at all. It is SOP

[srhslev]

Thank you so much! I am really nervous that they will not allow my income because its called seasonal, but it's not like a normal seasonal job so I'm having a hard time writing this explanation.  

Should I explain that I was placed on a furlough in 2013 or just explain the nature of my work? I was planning to write something like this:

To whom it may concern:

My employment status at the IRS is considered seasonal, but there is no "regular" season or amount of time that I may be employed or placed on furlough for.  I am employed for the IRS based on the needs of the service and not specifically during tax season.  If I am placed on furlough, I am always eligible to receive unemployment compensation.  I am currently employed full time and have not received any word of a pending furlough. 

Signed,

XXX

[StartingOver10]

Can you show consistent income over X years? That is a discussion you should have with your LO so you can formulate the LOE appropriately. Remember the LO is there to help you get the loan

[srhslev]

Yes, I have worked there since 10/2009. 

In 2010 I was placed on furlough for 6 weeks, in 2011 I was on furlough for about 6 months (part of it was voluntary because I wanted to stay home with my baby), in 2012 I was not placed on furlough at all, and in 2013 I was on furlough for about 6 months due to the sequestration/budget cuts. 

I guess I will ask him what to write. Any LOs here want to give any insight as well?