Home Buying in Saint Paul>Question Details

Rachel, Home Buyer in Saint Paul, MN

Qualifying for a mortgage without 2 years of work history.

Asked by Rachel, Saint Paul, MN Mon Mar 31, 2014

My lender pulled scores are 666, 674, 682. I have been working at the same job full-time for a little over a year now. Before that I was working through a staffing agency on and off for around 6 months. With the 3 months immediately prior to starting at my current employer being consistently at the same place. I currently have around $15,000 in my savings for a down payment. I was a stay at home mother for around 2 years prior to working with the staffing agency. My brother who lives in another state offered to be a non-occupying co-borrower or co-signer. One lender I spoke with told me FHA does not allow a non occupying co-borrower that lives out of state. Through my searching on the internet I could not find anything that stated that.

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I was going to answer this question and recommend you talk to the people at iloan because of how much they know about this stuff but I see Sherri answered the question already. Sherri Sherpy at iloan is one of the great people to work with over there.

Take care,

Kirk Duckwall
The Duckwall Team of Realtors
Edina Realty
Cell 651-303-0019
Realty Alliance Top Agent
Your Referrals Are Greatly Appreciated
1 vote Thank Flag Link Tue Apr 1, 2014
Sherri's answer below is pretty dead on. Now, any lender can have additional criteria that they add on top of FHA guidelines, but these "overlays" are not generally in this area. Regardless, myself, (and I'm sure others) routinely do transactions of this type. Make sure you get in contact with at least one (preferably 2 or 3) experienced lenders who are willing to lay out several options for you and then discuss the pros and cons of each one. If they won't do this in detail, move on to another one until you get the service that you should.

I am available to help you at your convenience if you wish.

I also offer credit score improvement programs for free while we work on your mortgage.

If you like my answer above, consider clicking on a “Thumbs Up” or “Best Answer”


Robert L. Hanson
Gladewater National Bank
First Time Homebuyer Specialist

Direct: 240-752-7549 Cell: 301-651-7822
Email: robertlh66@verizon.net
NMLS# 695929

Rate quote or live chat with me at the link below:

1 vote Thank Flag Link Tue Apr 1, 2014
Hi Rachel,

Unfortunately, you've been given bad information on a couple of levels. UNLESS you are a 1099 employee, self employed, earn commissions, overtime and/or bonuses. All of those "flavors" of income require a 2 year history before they can be considered qualifying income.

Regarding the 2 year work history...are you able to document a 2 year employment history prior to being a stay at home mom? If so, that is all that is needed. FHA allows less than a 2 year work history for those who have rejoined the work force after an extended leave such as caring for children. The only thing that is required is documenting a 2 year history prior to leaving the workforce and a minimum of 6 months on the current job.

On the non-occupying co-borrower who lives out of state....that is completely wrong. I've originated many loans with a non-occupying co-borrower living in another state. Heck, I am doing an FHA loan right now where the non-occupying co-borrower lives in another country.

Feel free to call me with questions.

Sherri Sherpy
The MN Mortgage Mom
1 vote Thank Flag Link Tue Apr 1, 2014
Give Lisa Swanson a call (952) 388-1633 or email her at Lisa.Swanson@loanpacific.com

I have never run into this situation as a Realtor so I do not know the definitive answer, and I certainly don't want to give you wrong information! I have known and worked with Lisa for over a year now and all my buyers just love her. I can promise you that what she tells you is accurate, and yes she should be able to prove to you either yes or no.

But as others have said I am not so sure you need a co-signer in the first place. It may turn out that you actually got MORE bad advice on employment history!

Just tell Lisa Chris Block sent you and she will help you:)

Good Luck!

~Christopher Block
Realtor St. Paul and surrounding suburbs
1 vote Thank Flag Link Tue Apr 1, 2014
I'm currently going through a very similar situation with an out of state co-signer that will not be living in the property, we actually moved the loan over to Conventional which in the long run will save my client a sizable amount of money. As for two years that is typically for independent contractors and people who work on commission, we can actually do loans for people that have a signed contract that says they will start the work within 6 months of the date of closing given the fact they have a sizable enough amount of money saved up. Best of luck and let me know if you have any questions, Saint Paul is a great place to be!
1 vote Thank Flag Link Tue Apr 1, 2014
The two year time frame that you are thinking of is for self employed people. If you are a W2 employee that earns an hourly or salary wage your lack of 2 year employment should be ok from what I have seen. You would also have trouble using overtime or commission income to qualify.
1 vote Thank Flag Link Mon Mar 31, 2014
If you wish, you can go to the FHA site itself and read the rules. Your credit scores would probably make it possible to purchase a home, but income history will be a factor as will income ratios. If you want more specific detail, please call me or email me. Liz, 612-986-4105.

P.S. If you have a realtor, and, if you are serious about buying a home, you should get one! Realtors know how to work with FHA and know which programs are available.
1 vote Thank Flag Link Mon Mar 31, 2014
Contact me via email or text if you would like the contact information for a fabulous lender that will be able to answer all of your questions and then some. If there is a program out there that will work with your situation, he will find it.
1 vote Thank Flag Link Mon Mar 31, 2014
Yes FHA allows non-occupying co-signer to reside outside the state you are buying in.
Yes you are required to have a 2yr work history...if it's not consecutive with your current & prior jobs, then go back to prior to being a stay-at-home-Mom and source your employment.
There is nothing tricky about what you are looking to do; you were just given poor advice. Good luck with your purchase! Let me know if I can help- 612.237.0404 Erika
0 votes Thank Flag Link Wed Apr 23, 2014
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