Most lenders want to see a two-year consistent employment history. However, we have closed many loans with borrowers who have gaps in employment all the time.

Common reasons for gaps in employment

• Maternity leave

• Personal time off due to divorce or death in the family

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• Being in school full time

• Military deployment

• Working part-time that transitioned into a full-time job

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You will need to write a letter of explanation to the mortgage underwriter stating your reason for the gap. If you have been at your current employment full-time for ideally six months and can get verification of employment, you should qualify for a mortgage loan. 

Consistency is key

Lenders are looking for two years of employment history but that doesn’t necessarily mean you have to stay at the same job. They understand that it is very common for people to switch companies to advance in their careers. You should document the changes in your employment by keeping track of your start and end dates; Those dates are then verified by your past and present employers.

Frequently Asked Questions

What if I change jobs often within the same employment field?

This shouldn’t be a problem if you received some sort of income benefit or advancement (ex: job promotion) in your field. The underwriter may ask for a letter of explanation.

I am transitioning to a new company and only have a job offer, can I qualify?

We can use your offer letter in lieu of pay stubs when we initially submit your file, but the underwriter may ask for 30 days of pay stubs before giving you the final approval.

I am no longer in the same field of work and just started at my new job this year.

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Remember lenders are looking for consistency in your income and will continue to do so after you close. You will need to write a letter of explanation for the switch in careers.

The bottom line?

If you’re planning to buy a home in the next 6-12 months, it’s best to talk to a mortgage broker now. Explain your job history and ask if that would be a deal-breaker. Depending on the lender and their guideline overlays, they may be flexible with your situation. Our loan officers at Veridian Mortgage have access to over 60 lenders and we’ll find the best one for your needs.

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