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Does switching jobs and companies count against the 2 years of steady employment required for an FHA loan?

 

Question:

My husband and I are saving up for a down payment on FHA loan. We’ll hopefully have one saved up in a year or two, but right now we’re just gathering information. I’ve heard that lenders require two years of steady employment to get an FHA mortgage. So I’m wondering, if I’ve been employed for three years total, but have been moving up in my positions and salary each year, if I qualify.

For example, I started as a tech support making $45,000 a year, and then one year later, was promoted to a junior developer making $55,000 a year. Then I switched companies just about a year and a half later, and now I’m a QA automation engineer making $80,000 a year. Will lenders see this as a good thing or will they have wanted me to stay in my current position at the current company for two full years in order for it to be considered stable employment?

 

Answer:

FHA requires a two-year employment history, but it does not need to be in the same position or with the same employer. They’re going to look at the cumulative job history, and if you’re now at an $85,000 salary, FHA will qualify you at that new salary amount.

However, if your pay was hourly and those hours varied, meaning some weeks you worked less than 40 hours, FHA would average your income. In your case, it sounds like your salaried, so they’ll give you that full salaried rate even if you’ve been there less than two years.

 


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