Getting a Mortgage Without a Perfect 2-Year Work History

A dependable income is a must for getting a mortgage. Lenders want evidence that you'll be able to repay a loan, so typically they like to see a steady two-year work history with a stable or rising income.

But that doesn't mean any kind of job change or employment gap will sink an application. Here's what to know about qualifying for a mortgage if your work history is a little outside the box.

Job or career change

You don't have to stay in the same job, or even in the same career, for two years to get a mortgage. What’s important is showing a consistent level of income. As long as your income remains steady or increases, switching jobs before you apply for a mortgage shouldn't hurt your chances.

However, a change in the type of pay, such as a recent move from a salaried position to a commission-only or self-employed role, would make qualifying tougher. To count self-employed, commission or overtime pay, a lender usually wants to see a full two-year history of that type of income to get a reliable average.

Another complication would be a job change during the mortgage application process. If that happens, call your lender right away. With a conventional loan, you can typically produce a pay stub from the new job, a job offer letter and a verification of employment (VOE) letter to move forward. However, with a government-backed loan, you’ll need 30 days of pay stubs before you can close.