Husband's hobby income - any affect on underwriting?

[Anonymous]

I was pre-approved for financing but my husband was not due to FHA's 2 year employment requirement. My question is: 

We share banking. There are several small deposits into our savings whether it is cash, PayPal transfers, or Etsy transfers because my husband has just started a small side wood-working hobby. None of the deposits in the last 90 days are over $199. Will this be an issue during underwriting? I am such a worry wart when it comes to the underwriting phase. We are going to sign an offer letter tonight for a house - but I am worried! 

[Anonymous]

When my partner and I bought our house he and his mother are on the loan (primarily due to my income to debt ration pulling down max purchase price from FHA standards on student loans). Underwriting ended up having me write a letter stating that our joint accounts were joint funds and that my partner had permission to use any and all funds in the account for the purchase of the home. Underwriting didn’t question ANY of my deposits, which were approximately $20k from the 6 months of statements they asked for. Of course, YEMV.

[Anonymous]

Thank you for your feedback - I appreciate it! 

[homeloanexpert]

Are you saying he is self-employed with less than 2 years?

[Anonymous]

No - he is a heavy equipment operator and mechanic. He has been at his current place of work for 1.5 years, before that was at an automotive ship for 6 years. He has recently started doing woodworking on the side which accounts for the many small deposits in our bank account (that we are tracking and setting aside 15% for taxes and will claim the income).

[homeloanexpert]

Then you were told wrong. FHA does not require 2 years in a new career. Generally 12 months. The borrower has to provide a 2 year "Work History" unless the borrower is a recent college grad, then that is waived as the degree is used in place of the 2 year requirement. In his case, the UW just needs to reasonably be able to determine that income is likely going to continue. Now O/T and bonuses are different. We all know with this current economic climate, he'll be working well into the future. Easy deal!