Will Changing Jobs Disqualify Me for an FHA Loan?

Will Changing Jobs Disqualify Me for an FHA Loan?

Albany, NY · Member since 2019 · 5 posts · 0 votes

I am currently a newbie closing in on making my first investment purchase. I'm looking at purchasing a triplex or fourplex using an FHA loan. However, I am considering switching to a new job in a completely different field and job role. Initially my pay will be about the same as what I'm making now (perhaps a tad less initially but will earn me significantly more a couple of years down the road.) Will switching jobs to a totally new field/different career totally disqualify me from getting an FHA loan? Or am I still qualified as long as I have a steady employment history? Thank you for any knowledge anyone can share!

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Chris MasonPro Member
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Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
7y
Originally posted by @Joanna Brumley:

I am currently a newbie closing in on making my first investment purchase. I'm looking at purchasing a triplex or fourplex using an FHA loan. However, I am considering switching to a new job in a completely different field and job role. Initially my pay will be about the same as what I'm making now (perhaps a tad less initially but will earn me significantly more a couple of years down the road.) Will switching jobs to a totally new field/different career totally disqualify me from getting an FHA loan? Or am I still qualified as long as I have a steady employment history? Thank you for any knowledge anyone can share!

 You would need to tie the old job to the new job in a narrative that represents career progression. Lawyer to janitor wouldn't cut it. Janitor who just passed the state bar and got their first job as a lawyer would totally cut it.

Assuming both positions are salaried, or consistently 40 hours a week. Note that IRS Form 1099 is automatically self employment, per the IRS tax code.

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  • Member since 2019 · 25 posts · 2 votes
    7y

    In my past experience when I was working as a loan officer, we would perform a verification of employment 2 days or so prior to closing, assuming the borrower was still working at the place I qualified him/her at.    I am sure Someone that is more update with current  guidelines will chime to in.  I have not worked in the industry for a number of years.

  • Chris MasonPro Member
    Moderator
    Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
    7y
    Originally posted by @Joanna Brumley:

    I am currently a newbie closing in on making my first investment purchase. I'm looking at purchasing a triplex or fourplex using an FHA loan. However, I am considering switching to a new job in a completely different field and job role. Initially my pay will be about the same as what I'm making now (perhaps a tad less initially but will earn me significantly more a couple of years down the road.) Will switching jobs to a totally new field/different career totally disqualify me from getting an FHA loan? Or am I still qualified as long as I have a steady employment history? Thank you for any knowledge anyone can share!

     You would need to tie the old job to the new job in a narrative that represents career progression. Lawyer to janitor wouldn't cut it. Janitor who just passed the state bar and got their first job as a lawyer would totally cut it.

    Assuming both positions are salaried, or consistently 40 hours a week. Note that IRS Form 1099 is automatically self employment, per the IRS tax code.

  • Rental Property Investor · Edison, NJ · Member since 2016 · 753 posts · 565 votes
    7y

    @Joanna Brumley. I would wait until you move since it is a new industry and it does not sound like you will be paid much. This potential job change could keep you from being approved for a mortgage.

  • Albany, NY · Member since 2019 · 5 posts · 0 votes
    7y

    Thank you @Amy Beth, I appreciate your input!

  • Albany, NY · Member since 2019 · 5 posts · 0 votes
    7y

    @Chris Mason - That is helpful and makes perfect sense, thank you for your reply!

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