FHA Approval

[Anonymous]

I have a contract in on a house that is short sale.   The seller accepted it and it is at their lender's now waiting to be approved.  I have a preapproval letter (2 actually from 2 different companies) and I sent over my documents in preparation in case the contract gets accepted.   I keep reading that FHA requires 2 years in the same field.  I told my mortgage company when I applied that I have been in the legal field on and off for 11 years.  I have been back in the field for just over a year and a half.  Before that I was waitressing for 2 years.  Before that I was in legal for 4 years.. I started work in legal in 1997.  I started waitressing in 2000 when my son first got sick.  I had to be home to take him to doctor appts and in and out of the hospital.  He hasn't been in the hospital for 2 years now.. the longest stretch by far!  My parents are now both retired and will help out if for some reason he starts getting sick again (knock wood he doesn't).  In the past it has always been just me (I'm a single parent with full custody)    My paystubs for this year already surpass my tax return for 2008 by almost 10,000 and surpass 2007 by about 12,000.  I have asked my mortgage person a couple times if it would be an issue that I haven't been in law for 2 years straight this time around and she has said you are preapproved.  I just need documents and a contract to lock you in.  (documents went to her this am.) 

What is the likelihood of something popping up regarding my job history when I go to lock in or settle?

Also, my parents are giving me 20% down on the house.  They dont want to transfer any money until the contract is signed and closing is set.  That money is not in my bank account.  Will that be a problem?

Thanks.

[Anonymous]

I just found this:

FHA Loan Qualifying Summary
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FHA loans are the easiest type of real estate mortgage loan to qualify for. The FHA guidelines for loan qualification are the most flexible of all mortgage loans that require less than 5% down payment.

Following is the basic FHA loan qualification guidelines.

• Two Years of steady employment, preferably with same employer.

• Last two years Income should be the same or increasing.

• Credit report should typically have less than two thirty day lates in last two years with a minimum credit score of 620 or higher or in some cases no credit score at all.

• Bankruptcy's must be at least two years old, with perfect credit since discharge.

• Foreclosure's must be at least three years old, with perfect credit since.

• Your new mortgage payment should be approximately 30% of your gross (before taxes)  income.

These are some of the most basic of FHA guidelines for qualifying for a FHA loan.  If   you have answered yes to most of these statements, you probably qualify for a FHA mortgage loan.

If it is accurate, I am good to go.

Thanks.  

[DallasLoanGuy]

you will be considered 're-entering the workforce'for employment continuance.

underwriter just needs letter explaining and document previous legal experience via employent verif

[Anonymous]

Thanks DallasLoanGuy.  

Even though I have always held a job when home with my son (doctors appts during the day, waitressed nights and weekends)? 

I have no problem writing a letter, providing copies of his disability paperwork, etc.  I have never been out of work except for a few months many years ago (and I got Unemployment then).  I have previous w2's with the 3 other law firms I have been with and letters of recommendations from my past employers.

I also have w2s for the tavern I waitressed at (on and off since 2000).  I have always gone back to the same one.

[DallasLoanGuy]

yes, the part time job will be considered a career gap(putting career on hold for family).

dont fret if the underwriter is picky about documentation.... they are just making the file look as good as possible for their investors.... not looking for a reason to deny.

this will not be a problem.

[Anonymous]

actually  my mortgage person emailed just after writing this and asked for a letter stating why I was waitressing and how long I had been in the legal field.  I made sure to put in there after stating that I left due to my son's health concerns that he has not been hospitalized in 2 years.  Hopefully that helps (and STAYS true).  Also that my parents are now retired and able to help if he does get sick again.

[Anonymous]

You should be fine. FHA requires 2 year work history but you have compensating factors such as years in the profession. that letter of explanation is pretty standard.