Gaps in Employment

Lenders usually require borrowers to have a minimum of 2 year job history. However, there are exceptions to this rule.

Attending school:
If the borrower was attending school and started working full time less than 2 years ago, all you need is to provide lenders a copy of your official school transcript and a fully completed written verification of employment from your current employer. You should be good to go.

Seasonal workers:
If you work in the construction field, farming, or working for the union, most of them also receive unemployment income during that gap of employment. What you need is to provide lenders are:(1) a detailed letter of explanation in regards to your employment situation, (2) 1099 to support consistent unemployment income received each year, and (3) complete income documentations to support that you always go back to work after that season is over within the past 2 years. With these documentations, you still can qualifying for a home loan. Some lenders even allow you to use the unemployment income for qualifying as long as you can provide documents to support consistency in receiving them.

Unable to work due to illness:
If a borrower can proof that he was working full time prior to being ill and is able to work full time at the current job, usually a detail letter of explanation will still work. However, letter must indicate that you are no longer ill and is capable of working full time moving forward. What you say on this letter of explanation can make or break a deal.

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