How Will Your Income and Employment Be Evaluated When You Apply for FHA Financing?

Two years of employment verified

• FHA likes to see two years of stable employment. There are many exceptions however for gaps in employment. For example, if you are just graduating from college or professional training, you do not need two years of employment as long as you can document that you were in school previously and you are now employed in your profession of study. There are many exceptions so please inquire about your situation.

Overtime and bonus income

• To count this you must have received this income for 24 months and we will average this income over the last 24 months. There must be evidence it will continue.

Part-time employment

• Must have a two year history

Commission income

• You must have a two-year history and we will average this income over the last 24 months. Your last two years federal tax returns all pages are required to calculate this income.

Unreimbursed business expenses (2106)

• These expenses will be subtracted from you qualifying income.

Alimony and child support income

• You can count this income towards qualification if it will continue for three or more years and you will need to provide the divorce decree and 12 months evidence of receipt of funds. This income can be multiplied by 1.25 since it is not taxed.

Government assistance

• This can be counted, as income if you can document it will continue for three more years.

Self-employed or 1099 independent contractors

• You will need to supply you last two years tax returns all pages and schedules and your NET business income will be what is used as you qualifying income. There are many details regarding self-employed income, please call or email me with questions.