2 year rule? (loan, 2011, credit, loan)

[ogplife]

When they say people need to have 2 years of employment to help obtain a mortgage does it have to be two full calender years (24 full months) or employment from say 2007 to 2009? For example, if you begin employment with an employer in August 2009 and applied for a mortgage March 2011, would they look at that as two years of employment, since you would have tax returns from 20009 and 2010 from that employer?

[Eusibius2]

I didn't have a problem with that. My most current job began in August of 2007 also and I applied for a mortgage in May 2009. So far, no problems. I've also had very steady work prior to that as well as very steady residency elsewhere. That may have helped us.

I think in the long run, if one area is not up to par, then they will look to other areas that are above their standards to compensate for those earlier areas.

[Debsi]

You have to show what you've been doing for 24 months.

If you don't have a full two years on the application, you will have to also enter the name and address of the company you worked for before.

If you have an employment gap, they'll want a letter of explanation for it.

If you were in school, they'll want to see your transcript.

[AmandaVA]

Originally Posted by Debsi

You have to show what you've been doing for 24 months.

If you don't have a full two years on the application, you will have to also enter the name and address of the company you worked for before.

If you have an employment gap, they'll want a letter of explanation for it.

If you were in school, they'll want to see your transcript.

Yup. This is correct.

[NJ987654]

24 months... (i.e., 7/07-7/09) unless you are self employed. If you are self employed, they may want to see 2 years full tax returns.

[oscottscotto]

Say you work for a great job MAR 2008 through JUNE 2010. You then move to a new city and take a different good job that begins AUG 2010. You then want to look into buying in that new city in SEP 2010. How would that be seen? Surely I would not be turned away (with good credit and a 10% down payment) simply because I have not been working in the same city or the same job for 2 years straight, would I?

[Daddys///M3]

Originally Posted by oscottscotto

Say you work for a great job MAR 2008 through JUNE 2010. You then move to a new city and take a different good job that begins AUG 2010. You then want to look into buying in that new city in SEP 2010. How would that be seen? Surely I would not be turned away (with good credit and a 10% down payment) simply because I have not been working in the same city or the same job for 2 years straight, would I?

I don't see an issue. A 2 month gap in employment can always be explained by a relocation. A letter of explanation would be needed, but again I see no issue.

[NJ987654]

Originally Posted by oscottscotto

Say you work for a great job MAR 2008 through JUNE 2010. You then move to a new city and take a different good job that begins AUG 2010. You then want to look into buying in that new city in SEP 2010. How would that be seen? Surely I would not be turned away (with good credit and a 10% down payment) simply because I have not been working in the same city or the same job for 2 years straight, would I?

Generally, you would not be turned down if the new job was Full time and salaried or hourly. However, if you were 1099, commission, tips, bonus, over time, etc, they would not count that income and the loan would likely be declined

[oscottscotto]

Oh ok, that makes me feel better. It would be going from a salary managerial position to salary school teacher (which I used to be 3 or 4 years ago). Most likely there will be a 2 month gap between paychecks if the wife and I choose to go this route.