I've been working for 8-9 months now. Is it true that I need to be working for 2 years before I can be approved for a mortgage loan?

Asked by Lmiano, 94587 Tue Apr 10, 2012

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Chris Bolts, Renter, Union City, CA
Sun May 17, 2015
I know this is 2 years later, but here's the thing that nobody mentioned above. What type of employment do you have? The lenders differentiate between employed in a salary position versus contract worker, vs hourly. Then there's 1099 contract workers and w2 contract workers. Here, in Silicon Valley, CA, there's a lot of contract workers, so these questions come up. If you have been in a contract worker position solid for 2+ years, no problem or the same with a regular employer. But the question comes up if you just recently switched from being a full-time employed salary position to an hourly position now. Because now you need to build that two year history in that type of employment arrangement. They have no way of knowing if you're going to still be employed in the next year. With that being said, this is more of a big deal if you're applying for no money down (FHA or VA), but less of a deal if you're doing a conventional loan (20% down).
0 votes
To clarify
Chris if you have been a contract worker for 2 years and then become a salaried W2 employee, we do not now need 2 years as a W2 employee.
As long as your contract work is consistent with what your new job is, you will be fine. It is when it is the other way around (W2 to contract) where you are going to run into a hitch.
A contractor worker has a limit to their contract. If they can show over the past two years that they have consistently had that contract renewed, then we can use the contract income.
The W2 employee does not need to prove that time frame.
Flag Wed Jan 6, 2016
Robert Chome…, , San Diego, CA
Wed Apr 11, 2012
What were you doing before the 8-9 months? That is the key to answer the question.
0 votes
I worked for a year then I left because I had baby. Then I came back to work after a year. Same Business industry/line of work for the last 12 years - Logistics
Flag Wed Apr 11, 2012
Lmiano, Home Buyer, 94587
Wed Apr 11, 2012
This really helped a lot. Thanks so much for all the answers... :)
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Alan May, Agent, Evanston, IL
Wed Apr 11, 2012
While lenders do like to see a 2-year history of employment, it's not carved in stone. (Well, at least it's not carved in HARD stone) There are many factors, many facets that go into approving you for a loan, and if you meet or exceed those other aspects, it's possible that they'll accept your 8-9 month history.

Talk to a local lender, and they'll look at your details and can let you know if the short period of employment will be an impediment to obtaining a loan.
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Belina Casas…, Agent, Fremont, CA
Tue Apr 10, 2012
If you have a Bacherlor or Master's degree you don't have to be employed for 2 years. Of course there are other factors to be considered to get a loan approved. The best thing is to work with a good loan officer who can discuss your finances and provide you the best financing terms and service.
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Patrick Fiel…, Agent, Plano, TX
Tue Apr 10, 2012
No, it is not true that you must have 2 years of work history in order to be approved for a mortgage. As with all major purchases, you should shop around. I have a relocation client that I am currently working with who has been preapproved with only 2 weeks with his new employer. Certainly other factors will apply,
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George Raymo…, Mortgage Broker Or Lender, Fort Worth, TX
Tue Apr 10, 2012
We lenders require a 24 month work history. There are exceptions to that rule for example, recent graduates from a University, College or Tech School. We actual count your education as part of that work history. There are a few hoops you have to climb through, but noting too difficult. I just closed a loan where a RN had only been working for 30 days after receiving her Nursing Degree. Please feel free to contact me if you have any questions.

Best of Luck!
Web Reference:  http://www.AFN-Loans.com
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Elliott R. O…, Agent, McLean, VA
Tue Apr 10, 2012
The simple answer is that if you are self-employed yes you need to wait until you can provide 2 full years of tax returns. If you are W2 wage earner you do not need to wait 2 years and most lenders will want at least 6 months under your belt at your new job.
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Uzzil Batucan, Agent, Anchorage, AK
Tue Apr 10, 2012
Hi Lmiano,

You should contact a Lender/Loan Originator and find out. He will tell you exactly what to do.


Uzzil Batucan
0 votes
i did and I was actually approved but when I tried to shop for other loan provider, I was told that I need to have work for 2 years before I get approved.
Flag Tue Apr 10, 2012
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