USDA and Job Requirement

[KoalaT]

I watched a youtube video recently in which a broker stated that the job requirement for USDA is one year of consistent employment. I was wondering if this is true?

I had a significant gap in employment because I was a stay at home parent of two littles. Truly, the cost of childcare would have put a huge dent in any income from any job I would have been working, not to mention the huge waiting list of all the day cares. But that is the reason. This coming March will mark my one year anniversary with my current employer. Obviously I am hoping the one year requirement is correct. Also I did go back to the same field I left when my first baby was born.

[Mortgage-Specialist]

Prior to you working in March, when was your last job? (Rough estimate on that jobs start/end date)

[ShanetheMortgageMan]

USDA provides a FAQ on stable & dependable income at https://www.rd.usda.gov/files/RD-SFH-Chapter9FAQ.pdf.  One of the questions listed sounds similar to your situation, which would just require you to have a 1 year continuous history of employment.

The situation is:  "The applicant has been on their current job for 6 months. Prior to this employment, had a 2 year leave of absence from the workforce"

USDA's response is:

"Applicants must  have a minimum 1 year of continuous stable and dependable income to qualify for program assistance. A two‐year gap of employment is significant regardless of the previous work history. On the other hand, a person leaving their employment without having another job lined up, resulting in 1 month of unemployment may also be considered to not have employment continuity unless it is carefully documented and justified."

[KoalaT]

I worked a holiday job "just for fun" Nov 2019-Jan 2021. But before that my main job, I worked up until October 2016 and had stayed home with the children since. When I did the just for fun job it was seasonal, part time and I only did it for store discount and to get a little extra Christmas money. I am also kind of worried that little seasonal job will be a problem. It worked out because my spouse was able to watch the children while I was there for the small amount of time I was there, no more than a five hour shift.

[KoalaT]

I guess the main thing, is to say I have talked to multiple lenders and it seems some are willing to go forward come this March, with a letter explaining the gap. Others are a hard no, won't even consider it. But I am thinking of applying direct so I wondered if the job gap would cause an instant denial. 

[KoalaT]

Ugh that retail job date work was incorrect. I only worked there Nov 2019-Jan 2020, not 2021. 

[ShanetheMortgageMan]

Since you'll have continuous employment for at least 1 year when you apply in March you'll be fine.  A 24-month employment history isn't required.