Eligibility for Financing when you're in a severence period?

2 Replies

So, I"m starting a new company...currently in a severence period with the old outfit. I also have a duplex under contract. Anyone knows what happens if my employer says, "uh yeah, he is outta here in two months.? I'm taking all accounts with me so in terms of my cash flow I should be fine, but Fannie and Freddie are mindless robots who do not color outside the lines. Anyone have this experience?

Hopefully an underwriter will pop up to chime in

However, when I was in this situation - leaving one job to go to another - it was a non-event for the mortgage broker since I was staying within my field and not taking a pay cut.  I was told that if I were changing careers or taking a substantial cut, they would have had to start underwriting all over.  

This was several years ago though, so take it with as big a grain of salt as you like.

Are you starting a new company or just going to work for a one? 

If you're self employed then it'll be pretty tough because we want to see at least 2 years, there may be a little flexability but it's not a guarantee, even it's the same accounts or clients.

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