FHA Loan and self employment

[April Zarling]

Hi All! 

I know there are tons of discussions about FHA loans and self employment and I have tried reading a lot of them. I had read somewhere that FHA lending requirements can accept less than 2 years of self-employment given that the individual has been in the same industry for 2 or more years. Our specific situation is that my husband was employed in the same industry with a w-2 for 1.5 years but then do to tax reasons we had switched over to 1099 still working for the same company in the same industry. They are now stating that they are only willing to go from the last 6 months of when he started the 1099. Logically, one could decipher that it's the same job, in the same industry. I have started calling banks and no one seems to know and just tells us that we do not qualify for the loan. Does anyone have experience with this in particular or know where I can find more information to present to the banks? I am trying to work with local banks vs the larger ones as well. We would like to purchase an owner occupied 4-plex.

[Charlie Fitzgerald]

@Upen Patel or @Jerr Pafilla or @Chris M. can give current confirmation on this, but it used to be that if you went from 1099 to W2 in the same industry, job or line of work with no gaps, you were good to go.  But, if you went from W2 to 1099 you had to show minimum of 12 months income as a 1099 wage earner.