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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.
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Robert L. Hanson
Gladewater National Bank
First Time Homebuyer Specialist
Direct: 240-752-7549 Cell: 301-651-7822
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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.
The MN Mortgage Mom
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:)
Realtor St. Paul and surrounding suburbs
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.
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