The Truth About Buying a Home After an Employment Gap

A client called with a question concerning an employment gap.  After a year of not working, she wanted to know how long she would need to be back on the job in order to use her income, in addition to her husband’s, to qualify for a home loan.

When I gave her the news, she was elated.  That got me thinking: Are there more people in the dark regarding their timeline for purchasing a home after an employment gap?  If you are one of those people, please continue reading.

In general, here are the requirements if you’ve had an employment gap of 60 days or more.  (It’s also important to note that one or two lenders require the following for a gap of 30 days or more, but most only require the below for a 60 day gap.)

  •  Six months back on a new job since the employment gap.
  • Documentation of employment history prior to the gap—usually a two year history prior to the absence from work.
  • A written explanation of the employment gap (i.e. time off to raise children, travel the world, start a business).  Be honest and concise in your letter. 

If you are considering purchasing or refinancing in Richmond, VA, please contact me for a free mortgage consultation.  To stay informed, follow me on Twitter and like me on Facebook


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