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rsteve67
9 Posts |
 Posted - 07/10/2009 : 12:15:45 PM
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| I have a client that is transferring from Michigan University to USF We have the employment contract (not offer letter) for new position outlining his new income, which is needed to qualify. His new position start date is 8/7
His contract closing date is 7/31
can he close this FHA purchase using his new income before his official start date since I have a employment contract? |
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virgiltab
184 Posts |
Posted - 07/10/2009 : 12:32:45 PM
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| I'm pretty sure FHA requires 30 days paystub. But who knows for sure, call your AE |
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TheBigGuy
536 Posts |
Posted - 07/10/2009 : 12:35:25 PM
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| I've had these situations and have always needed at least one pay-stub |
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Edumakated
238 Posts |
Posted - 07/10/2009 : 3:50:41 PM
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With FHA you are going to need the to have at least started work. They don't need the paystub, but they need to have officially started. I just closed one like this with GMAC. She started on a Monday, we got the VOE, and closed on Wednesday with no paystubs.
If it is a relocation and you have an employment contract, most lenders will do it under relocation guidelines if going conventional (maybe FHA as well).
Look up relo guidelines for the lender you plan to send it to. |
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Managing Prime
2960 Posts |
Posted - 07/10/2009 : 4:47:19 PM
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| Stupid question, but is it relo if it's not the same employer? |
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Edumakated
238 Posts |
Posted - 07/10/2009 : 5:23:23 PM
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No, it doesn't have to be the same employer. If you are moving and have secured employment, some companies may provide moving assistance. If that is the case, most conventional lenders will take the employment contract/offer letter prior to actually starting work.
I do a TON of these loans. However, it is a little more difficult in the current environment. Some of the MI companies will still want a paystub even if the lender's guidelines are ok with the offer letter.
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Managing Prime
2960 Posts |
Posted - 07/10/2009 : 5:25:35 PM
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quote:
Originally posted by Edumakated
No, it doesn't have to be the same employer. If you are moving and have secured employment, some companies may provide moving assistance. If that is the case, most conventional lenders will take the employment contract/offer letter prior to actually starting work.
I do a TON of these loans. However, it is a little more difficult in the current environment. Some of the MI companies will still want a paystub even if the lender's guidelines are ok with the offer letter.
Good to know. Never had much experience with them until lately and it's just been transfers within the same company. |
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rsteve67
9 Posts |
Posted - 07/11/2009 : 08:59:29 AM
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| I found this info in the FHA handbook: If a borrower is about to start a new job and has a guaranteed, non-revocable contract for employment that will begin within 60 days of closing, the income is acceptable for qualifying purposes. The borrower must have sufficient reserves to carry him through till his start of employment. No pay stub is needed. |
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rsteve67
9 Posts |
Posted - 07/11/2009 : 1:08:58 PM
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quote:
Originally posted by Edumakated
No, it doesn't have to be the same employer. If you are moving and have secured employment, some companies may provide moving assistance. If that is the case, most conventional lenders will take the employment contract/offer letter prior to actually starting work.
I do a TON of these loans. However, it is a little more difficult in the current environment. Some of the MI companies will still want a paystub even if the lender's guidelines are ok with the offer letter.
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Edumakated
238 Posts |
Posted - 07/11/2009 : 4:34:22 PM
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quote:
Originally posted by rsteve67
I found this info in the FHA handbook: If a borrower is about to start a new job and has a guaranteed, non-revocable contract for employment that will begin within 60 days of closing, the income is acceptable for qualifying purposes. The borrower must have sufficient reserves to carry him through till his start of employment. No pay stub is needed.
The part that trips most folks up is hardly anyone ever has a guaranteed non-revocable contract. It used to be the offer letters were sufficient for most lenders, but now they are nit picking them. Some of it is senseless, but that is the world of mortgage banking. I have a Doctor finishing up a residency at a hospital and she took a position at the same hospital making like $200k, but the MI company wants a paystub in the new position. Yet, that same MI company would approve a loan all day long to some guy working at 7-11 with borderline ratios and mediocre credit just because he can get 30 days of paystubs. Makes no sense....
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brandtrust
712 Posts |
Posted - 07/12/2009 : 07:35:39 AM
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| I am doing a USDA right now with the same situation, one university to another, with a contract. Maybe its just USDA, but I have found that it differs from lender to lender if they accecpt or not. TBW was 30 days, AMSW and SunTrust both didn't care as long as the first paycheck was before the first mortgage payment. I did get stipped to death on the income though. |
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