The Regan Team - Petaluma Homes & Mortgage Blog - PetalumaLending.com: Unemployment and Financing

In these turbulent times many people have been laid off and some have been fortunate enough to find new jobs.  With the low rates and low home prices many of these previously unemployed people are looking to purchase a new home. 

So how does unemployment affect financing?

As usual there’s not a cut and dry answer but in general 6 months is the magic number.

If a borrow was laid off for a period of time and then got a new job in the same line of work, 6 months job seasoning is the norm.  There is some flexibility if the borrower immediately secured new employment in the same field. 

If a potential home buyer was laid off and then started a new job in a different profession six months is the rule.

The big caveat is if the borrower was W2’d and is now self employed, they’ll need a 2 year history of self employment income before being loan eligible.