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how is the length of my employment factor in?

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how is the length of my employment factor in?

Question - I've been in my new job for about a year with a regular (i.e. non commissions) income every month. However, the first seven months I worked as an inpendent contractor with the same pay, same title, and was then made permanent. Will a lender that consider as a year or deduct the first months? Also, do I need to have been there for two years for the income to count? I have a contract with (incredibly) one year notice period on my salary, which guarantees some stability - will that be  considered by a lender? Thanks!

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Established Contributor

Re: how is the length of my employment factor in?

As long as it was in the same line of work it should could to your 2 years and you can qualify as a salaried employee. You need 2 years of employment in the same line of work (that can be verified with IRS transcripts, otherwise you are likely to encounter serious underwriting issues.)
Message 2 of 7
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Senior Contributor

Re: how is the length of my employment factor in?

If you have not been a full time, "permanent" employee for two or more years, there is no standard way that all underwriters will rule. An underwriter will evaluate and issue an exception...or not. 

Message 3 of 7
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Moderator Emerita

Re: how is the length of my employment factor in?


@lotsofquestions45 wrote:

Question - I've been in my new job for about a year with a regular (i.e. non commissions) income every month. However, the first seven months I worked as an inpendent contractor with the same pay, same title, and was then made permanent. Will a lender that consider as a year or deduct the first months? Also, do I need to have been there for two years for the income to count? I have a contract with (incredibly) one year notice period on my salary, which guarantees some stability - will that be  considered by a lender? Thanks!


Is this a new field or did you recently graduate college and have a job in your field of study?

Message 4 of 7
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Established Member

Re: how is the length of my employment factor in?

I had a similar situation. When my lender card for VOE they just verified the dates I worked as 1099 and the date I was switched to being w2'd. The first lender I worked with told me he couldn't do my loan because of it, the lender I ended up working with said it was no problem at all. I had bee in the sand field for 2 years with no employment gaps so my LO said it was no big deal. Just be upfront when you're talking to potential LO, they will know what their lender overlays are and if it should be a problem.
Message 5 of 7
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Re: how is the length of my employment factor in?

It's a new job - I've been in it for a year now, but before that worked in sales...

Message 6 of 7
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Re: how is the length of my employment factor in?

Thanks that's helpful!

Message 7 of 7
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