Home Buying in Sacramento>Question Details

Ramon Hernan…, Renter in Sacramento, CA

unemployed for years new job perfect credit tryong to apply for a home loan

Asked by Ramon Hernandez, Sacramento, CA Fri Aug 2, 2013

Okay I was unemployed for a very long time I just got a new job making close to 5grand a month my credit score is near perfect I was wondering will it be easy for me to obtain a homr loan? Also my wife been at her job for a couple years with near perfect credit but makes less than I do will it be easier to combine our income to obtain a home loan?

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13
Jeff Marr’s answer
Ramon - Jim and Ashley provided very detailed answers!

The bottom line is your income needs to be considered stable....if you JUST started working again, you won't get approved just yet. IF you're essentially performing the same type of job function or working in the same industry as before....OR if you've acquired a professional degree and are working in that field, then you'll need 6 months at new job before we can recognize your income....

Let me know if you'd like me to further analyze your entire situation!

And best of luck to you!

Jeff M
0 votes Thank Flag Link Sun Aug 4, 2013
Hi Ramon,

Congrats on the new job!

There are several layers to your situation to address, but in general, gaps in employment that can be explained and documented are acceptable when purchasing a home. I have listed some questions below that would need to be addressed to figure out what type of financing you would be eligible for FHA vs Conventional, etc...

How long were you out of work for? Was there a 24 month work history prior to the gap? How long have you been back on the job? What industry was your previous work in?

If you have any other questions feel free to reach out.

Ashley Sanchez
916-834-5999
Vitek Mortgage
asanchez.teamvitek.com
asanchez@teamvitek.com
1 vote Thank Flag Link Fri Aug 2, 2013
The real answer is “it depends.” The guidelines are open to interpretation, so it will boil down to how long you were out of work, what you did before as it relates to what your new job is, how stable is your new job (read what kind of letter will they write,) etc. Whatever you do, make sure to get a full underwriter loan approval; don’t rely on a loan officer saying the income from your new job will be considered.
Web Reference: http://sacrelender.com/
1 vote Thank Flag Link Fri Aug 2, 2013
I think you have a consensus here. Talk to a loan officer. It sounds that combining both of your income is a powerful case for getting a mortgage now but there are different offerings from different lenders. They won't all give you the same answer so keep asking.

I wanted to ask if you were possibly in the military at any time? if so, some of the VA programs might be a different approach. Also, some of the banks, like Chase, offer some flexible programs for their customers. Try Joe Yates, at Chase Bank at 916 691-9473 or Chris Stahl at Summit Funding at (916) 266-4436. Tell them I sent you.

As Elizabeth said, where there's a will, there's a way. Good luck!
1 vote Thank Flag Link Fri Aug 2, 2013
Ramon: Best to get yourself preapproved (underwriter review).
In that package include a detailed letter as to why you have been unemployed for the past few years(?). If your new job is in a related field to your previous employment or college education, you should be fine.
Yes, two year work history is 'traditional', but many times a husband or a wife elect to stay home with their children which underwriters (despite their persona) do have hearts and understand that child rearing is, although underpaid, is a notable career!
Let me know if I can help!
1 vote Thank Flag Link Fri Aug 2, 2013
There are ways around this ...Are you in the same industry/line of work as you were before. During the unemployment time did you take any courses, or perform any voluntary work that made you a better candidate for new employment, etc...

Anyway, you should definitely take all the agents' advice (below) suggesting you to contact a broker
1 vote Thank Flag Link Fri Aug 2, 2013
Ramon - Jim and Ashley provided very detailed answers!

The bottom line is your income needs to be considered stable....if you JUST started working again, you won't get approved just yet. IF you're essentially performing the same type of job function or working in the same industry as before....OR if you've acquired a professional degree and are working in that field, then you'll need 6 months at new job before we can recognize your income....

Let me know if you'd like me to further analyze your entire situation!

And best of luck to you!

Jeff M
0 votes Thank Flag Link Sun Aug 4, 2013
I sympathize. We Realtors often have widely fluctuating incomes from year to year, even if we are working straight through the years with no interruption..
One issue that crops up with underwriters is if the employment income of $5 grand a month includes income from bonus, commission, overtime, expense reimbursement etc. Or if the employment is of a temporary or seasonal nature. Those sources of income usually have a stricter two to three year history requirement than a job with an employment contract that spells out a scheduled 40 hour work week with a set salary or hourly wage.
If you have the latter type of income, a letter from your employer, such as a hiring letter, that names the position,states the income you are now earning, and does not have red flag words like temporary, seasonal, probationary, subject to level of production, would be good to have.
Previous 12 answers by others all good too.
0 votes Thank Flag Link Fri Aug 2, 2013
Jim Walker, Real Estate Pro in Carmichael, CA
MVP'08
Contact
Ramon...

Hi there... I thought I'd chime in.

Congratulations on the getting the new gig...I can imagine after a long time being unemployed that sure it feels great going to work and getting a paycheck.

As others have said before me here, take the time and speak with a mortgage loan officer and get pre-qualified.

If there are some problems, they will be able to direct you to solve them and ultimately obtain a loan.

Having a great FICO does mean a lot though.

I'll give you a Loan Officer's name and number here... give him a buzz and see what he has to say.

Dana Reed,
Big Valley Mortgage
916-768-4298
dana.reed@apmortgage.com

I hope this helps....

Make it a Great Day...!
0 votes Thank Flag Link Fri Aug 2, 2013
Hello Ramon

It's best to get that type of info directly from a mortgage banker as my colleagues have expressed.

If you'd like, for your convenience I've included contact info of one of my mortgage partners:

Phillip Hinojoza
LandHome Financial
Direct (916)239-7186
Fax (916)273-5663
Cell (916)549-9536 philliph@lhfinancial.com
NMLS 249712

You may email him or call him with your questions. He is very knowledgeable, kind, and has been in the industry for more than ten years.

My best to you!
0 votes Thank Flag Link Fri Aug 2, 2013
You definetaly should talk to a lender for the expert answers. It may be possible that with a good explanation for your unemployment, they may still accept you. Maybe at higher interest or more $ down.
It's harder now, after the foreclosure crunch, to get a loan, but still many do qualify. Best to call an expert and find out how. High credit scores are a good start.
Try Evelyne Jamet at Vitek Mortgage 916-452-8800
0 votes Thank Flag Link Fri Aug 2, 2013
Hi -usually it a 2 year work history minimum for primary borrower- since wife has it and combined probably yes with a higher interest rate-based on your credit score. go to http://www.annualcreditreport.com- or www. for creditkarma.com for your score and credit info- Hoope this helps
0 votes Thank Flag Link Fri Aug 2, 2013
Good Morning Ramon:

The best advice I can give you is to contact a reliable and competent local loan officer. They are the experts in this arena. Not only you can get a sound advice but also you can discuss your financing options from him/her.

Best of Luck.
0 votes Thank Flag Link Fri Aug 2, 2013
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