Just reading your question it says you have worked two different jobs in the last 13 months, if you had 2 or more jobs in the 11 months prior to that stability could be an issue. Again, not always a bad sign, I approved a guy once that had 8 different jobs in the previous 2 years, but always a move in the right direction. What you have described should not get a loan declined so my guess is, there is something else that triggered it.
The lender is supposed to provide you with a written Notice of Action, which explains why they rejected the loan application. If they didnâ€™t, ask for a copy.
NMLS # 6395
Financing Kentucky One Home at a Time
I answer questions about financing real estate based on my decades of experience dealing with mortgage underwriters. This answer is my personal opinion, has not been reviewed or approved by the company I work for. I do not offer legal or tax advice, if you need answers from an attorney or CPA find one knowledgeable in your local market.
Anna Maria Durr, NMLS 266699
CodeMark Financial, LLC
4500 Highway 6, Sugar Land, TX 77478
RE/MAX Real Estate Associates
Contract work should be fine so long as it is stable and your paychecks are hourly/salaried as opposed to commission based or deriving from bonuses.
Here is what the actual Fannie Mae underwriting guide says:
A minimum history of two years of employment income is recommended.
However, income that has been received for a shorter period of time may be
considered as acceptable income, as long as the borrowerâ€™s employment profile
demonstrates that there are positive factors to reasonably offset the shorter income
Compensating factors that may help your cause:
Heavy reserves (if you have the capability to put down more money - your own savings rather than a gift
Minimal use of credit
Low debt to income ratios
Low payment shock - your proposed house payment is about the same as your current rent payment
You may also want to look at FHA financing if you need to get in now as opposed to waiting until you have a 2 yr history. It will cost you more now but you can refinance later.
We can probably hook you up with a portfolio loan but the terms would not be as good. I would prefer to try and get you an FHA or conventional loan.
I'd be glad to have my people look at things for you. No underwriter will review things without a complete application though. This means pulling our own credit report and reviewing all income and asset documents. They don't review it bit by bit because unless they have the full picture they cannot accurately provide a decision.
Tony Grech | Mortgage Loan Originator | NMLS #977416
PMAC Lending Services, Inc.
Toll-free (855) 642-4762 ext. 278
Mobile (313) 622-7383
Fax (248) 945-4842
Connie Inmon / RE/MAX
713-777-9996 ext 103
Newbridge Home Loans
713-777-9996 Ext 103