Lending answer:

Going from self-employment to wage earner is much better than the other way around. Both conventional and governemnt insured loans require at least two years of self-employment income in most situtions.

FHA requires no minimum time on the job for wage earners. Stability of income is more important. Most lenders underwriting FHA insured loans prefer to have 30 days of pay stubs to work with. You and your husband's prior self-employment income will not be counted towards calculating your qualifying income; you will have to qualify on the amount of your new W-2 income jobs.

From HUD Undwerwriting Manual 4155.1:
"2-6 STABILITY OF INCOME. We do not impose a minimum length of time a borrower must have held a position of employment to be eligible. However, the lender must verify the borrower's employment for the most recent two full years. If a borrower indicates he or she was in school or in the military during any of this time, the borrower must provide evidence supporting this claim, such as college transcripts or discharge papers. The borrower also must explain any gaps in employment spanning one month or more. Allowances for seasonal employment, such as is typical in the building trades, etc., may be made if documented by the lender.
To analyze and document the probability of continued employment, lenders must examine the borrower’s past employment record, qualifications for the position, previous training and education, and the employer's confirmation of continued employment. A borrower who changes jobs frequently within the same line of work, but continues to advance in income or benefits, should be considered favorably. In this analysis, income stability takes precedence over job stability."

A couple of caveats
You will be qualified on base income only. Bonuses and commissions in the new position require a two year history to count.

If your prior business shows a loss in 2008, the underwriter might count that against the amount of your qualifying W-2 income. You will be asked to provide tax returns for 2008 as well as proof of 2007 income and employment, although the self-employmen income will not be used.

It is best to contact a local FHA lender for details. Good luck!

Contact a lender and ask that question. It depends on several aspects. Are you working in the same field, is your income similar and how is your credit score? A good lender will be able to help you. Be sure to compare lenders. Fees may vary. Good luck.

You may be able to get approved right away.
If Automated Underwriting accepts you, the job situation doesn't matter.

Let me know if you have any follow up questions!!

to answer directly to your question;
if your combined income comes under 45% debt to income ratio and you have at least 20% equity, then you case is good to go. If any case, you have line of credit and cltv is higher than 80%, so you should stay right with same back which you have 2 nd trust with. If not, you would have very hard time to get the loan from anywhere.

thanks,

Sean

The best approach is to contact with a mortgage banker and find out if there is possibility of doing so with better rate. Most importantly, see it is cost effective. rates are now low 5 or high 4, so it is in fact the best time to do the refi. Please email your email I will send you a good faith estimate for doing the refi in your state.

Thanks,
email me at sean.thorson@wachovia.com

Sean

sean

NOW!!! It the rate drop makes sense, as long as the Fannie Mae or Freddie Mac automated approval systems says yes, then you are good to go!

Norma,
Is he in the ame line of work as he was in before. They ant you to be in the same line of work for two years.
Soif he is in a different line of work you need to wait two years. If he is in the same line of work, call a Mortgage person, there are some on here or just look one up and address this question directly to them.
Margaret