topic Re: USDA and new job in Mortgage Loans

USDA and new job

Anonymous — Fri, 28 Apr 2017 14:31:41 GMT

Does anyone know how usda direct loans are as far as job history is concerned? We are applying in about a month and my husband may be at a new job. About 90% sure he will be. He has been at his current job for almost 6 years... will it hurt us that he'll more than likely be at a brand new job when he applies?

Re: USDA and new job

Anonymous — Fri, 28 Apr 2017 16:09:15 GMT

Anyone? 😕

Re: USDA and new job

Anonymous — Fri, 28 Apr 2017 16:42:26 GMT

This is what I found from the USDA handbook for Direct loans 502 and 504 (hope this helps Good luck!)

Stable and Dependable Income

The Agency has no minimum history requirement for employment in a particular

position. The key concept is whether the applicant has a history of receiving stable

income and a reasonable expectation that the income will continue. The Loan Originator

must carefully assess the applicant’s income to establish whether it can reasonably be

expected to continue for the next two years (e.g. child support and contract income). The

applicant must provide an explanation letter for employment gaps in excess of 30 days

unless their income history is clearly seasonal in nature. The Loan Originator must

review the employment gap explanation to make a determination on the applicant’s

ability to receive stable and dependable income. If the Loan Originator determines that

an applicant’s income source is unstable and undependable, the income must be excluded

from repayment but included in annual income.

https://www.rd.usda.gov/publications/regulations-guidelines/handbooks

Re: USDA and new job

Anonymous — Fri, 28 Apr 2017 16:44:37 GMT

Wow. Thank you. I have no idea why when I google the handbook it brings up what appears to be an employee training handbook, or a very old handbook! I'm book marking this!!!!! Thank you so much!

Re: USDA and new job

Anonymous — Fri, 28 Apr 2017 16:47:39 GMT

you're welcome! this one says revised January 2017 so it should be most current.

Re: USDA and new job

Anonymous — Sat, 29 Apr 2017 20:32:03 GMT

My loan is the USDA guaranteed, not direct, but I was just apppved by my lender and have only been at my current job 4mos. I asked my LO repeatedly if that was going to be an issue, but he kept assuring me it would not. I did have a stable 2yr history at previous employer and my income more than doubled when I took current position. According to my LO, the job change "made sense". I'm still waiting on file to clear USDA but I'm told they will only make sure the bank followed the guidelines and that I'm eligible for the program. As long as he has a history of stable employment/income and hasn't decreased his income, changed from hourly or salary to commission, he should be fine. If it is an issues, they should let you know upfront before you get too invested into the process. Good luck!