8/1/23 – Gap of Employment

I just wanted to clarify a few misunderstood guidelines relevant to this market today. FHA loan guidelines state that previous history in the current position is optional. However, we must document two years of prior employment, schooling, or military service and explain any gaps. You can have a gap in employment for an FHA loan, but you must have been fully employed for six months before the FHA case number is issued for your mortgage.

Do you know if I said before the case number is issued? This means you can order an appraisal at the 6-month employment mark.

On a conventional loan, they want to see the continuity of stable income. We generally define that as 90 days on the job in a full-time position. We will look at previous employment and ensure the job aligns with others. We have to look out for an employee that works at Trader Joe’s for 13 years as a checker and then leaves and becomes a manager of a Law Office. They go from making $60,0000 to $120,000.00 at the Law Office, then something starts to stink, and we look deeper.

The job change does not have to be in the same industry, but you will look at whether that person is qualified for that pay increase or if it is BS to get them qualified. Remember that a gap in employment is not the end of the world.

Wow, interest rates have taken a hit the past couple of days! We even had weaker data pop up today, which is usually good for interest rates.

• 12-day escrows if your buyer is pre-approved - Conventional / FHA / Jumbo / Bridge
• We do loans in all states, so call me with anything you need.  
• Government Loans (FHA / VA) are in the low 6’s.
• Conventional Loans up to $726,200.00 are in the low to mid 6’s and low 7’s.
• High Balance Loans $726,201.00-$ 1,089,300.00 are in the high 6’s and low 7’s
• Jumbo loans above $1,089,300 are in the 6’s and 7’s
• Bank statement loans - They are available with 10% down again! 7’s and 8’s + depending on down and credit score.
• No income qualifier – 20% down with reserves! In the 9’s!
• 0 down loans are in the mid to high 6’s – 660 credit score min right now, up to $740,000.00.
• Private Money lenders - hard Money Loans – 35% down!
• No Ratio Loans 30% down
• Debt Service Coverage loans with as little as 25% down
• Bridge Loans - are typically 7.99% with limited fees – But they get you where you need to go!
• 0 down California Dream for all Equity Share – Postponed until 2024!
• 3/2/1 Buydowns 2/1 Buydowns and 1/0 Buydowns are available at great start rates!

Interest rates are subject to change without notice! Above are LA County Loan Limits.

I am around all week if you have any questions or if someone is interested in buying a property! My cell is 661-714-6258, and my office line is 661-260-2970 ext. 2222. Please text me at 661-714-6258 or email me at Mike@AugustaFinancial.com. Have a great day and a better tomorrow! Please call me when you have a client that needs to borrow!