FHA Requirements--Stable Income or Stable Employment?

Question

Hey everyone,

What is more important to a lender when applying for FHA loan--having a stable 2 year employment or stable income? I've been in one industry but have been bouncing around every year ...any input would be appreciated.

Thanks!

Jason Pabon · Answer

Much Appreciated! @Chris Mason

Chris Mason · Answer

Hi @Jason Pabon,

It really depends on the nitty gritty particulars of your scenario. To really make a determination (and ensure you're looking for homes in the right price point, and not paying for appraisals/inspections on a house you can't buy), would need to see...

• Start/stop dates of all jobs, and job titles.
• 2015/2014 W2s or 1099s.
• Final December 2015/2014 paystubs.
• Final paystubs from each job from right before you left  each job, for the last two years. 
• Most recent two paystubs from current job.
• Reasons for any job gap over 30 days.

That's more than most W2 people are asked for, if it looks a little like the list that self employed persons get, that isn't a coincidence. If you can't find all that paperwork, there's a form that you can give to each former employer to complete. "Stated income" is gone, so you claiming that you made such-and-such income and so-and-so job unfortunately cannot be taken into consideration.